Are state payroll taxes the same as, or similar to, federal employment taxes?
Yes and no. As you can imagine, each state has adopted its own unique set of employment laws. As a result, each state has its own policies, procedures, forms, and requirements. To learn more about your state, please visit the State Info section.
With some exceptions, almost all states have adopted a state income tax. As a result, each employee's wages are subject to state income tax withholding, which is often calculated in a manner similar to that of federal income tax withholding. These amounts are then deposited with appropriate state tax agency and quarterly and/or annual reports are prepared to summarize the payroll activity of the employer throughout the reporting period.
Since it is required by the federal government under FUTA, each state maintains its own unemployment tax agency. In some states the unemployment tax is paid by the employee, while in most it's paid by the employer.