Railroad employment has varied considerably over the years. The total number of employees with some service in a year has ranged from a high of 3 million in the war year 1945 to a low of 247,000 in calendar year 2010. The average number employed has varied between a high of 1.7 million in the war years 1944-45 to a low of approximately 221,000 in 2010. Average employment in 2015 rose 5,000 from the previous year to 247,000.
In 2016, total railroad payroll was an estimated $21.6 billion, while the taxable payrolls (on the $118,500 tier I and the $88,200 tier II annual bases) were an estimated $20.0 billion and $18.4 billion, respectively. Tier I payroll includes miscellaneous compensation, such as sick pay. The employee tax rates for 2016 were 7.65 percent for tier I and 4.9 percent for tier II. Employer rates were 7.65 percent and 13.1 percent, respectively. The tier I rate is divided into 6.2 percent for retirement/disability and 1.45 percent for Medicare hospital insurance. While the 6.2 percent rate applied to the $118,500 annual base, all of an employee's compensation was subject to the 1.45 percent Medicare tax. Employees pay an additional 0.9 percent in Medicare hospital insurance taxes on earnings above $200,000 (for those who file an individual return) or $250,000 (for those who file a joint return). Retirement tax collections in 2016 were approximately $5.9 billion.
| Scope of RRB Operations |
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Benefits awarded since inception of the railroad retirement program
through fiscal year 2016:
- 2,051,000 to Retired Employees
- 1,223,000 to Spouses
- 2,524,000 to Survivors
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At the end of fiscal year 2016:
- 522,000 Beneficiaries were being paid $12.4 billion a year in benefits
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