Several payroll taxes are the sole responsibility of the employer and are not withheld from their employees’ paychecks. Some examples include the Federal Unemployment Tax Act (FUTA) tax, which funds the federal unemployment insurance program. Another example includes state unemployment taxes, which help fund the state unemployment insurance program where an employer does business. Most states require employers to provide workers’ compensation insurance, which pays benefits to employees who are injured or sick on the job and is calculated as a percentage of payroll.