The variety of state and local taxes precludes a detailed description here. In general, every employer who pays wages to employees is required to withhold income taxes from each payment of taxable wages, if required by the state or local taxing agencies. Not all states have withholding and many states do not have local taxing jurisdictions that affect payrolls. Some employers face particularly complicated state income tax situations. Those who conduct business operations in multiple states must meet the requirements of all the states involved.
All states require employers to pay a state unemployment insurance tax.
Although SUI is basically an employer tax, a few states have an employee tax as well. SUI is closely tied to the federal unemployment insurance program. If the state fund is depleted, the state may borrow from the federal government. The wage limits vary by state. Each state assigns every subject employer a tax rate once a year based on their experience or merit rating.