![]() The tax rate can change each year and is specific to your company. California unemployment insurance tax: You’ll pay this state unemployment insurance tax on the first $7,000 of each employee’s wages each year-up to $434 per employee in 2019.California state payroll taxesĭepending on your type of business, you may need to pay the following state payroll taxes: Here’s what you need to know about California payroll taxes and paycheck laws. It's not as simple as taking their annual salary and dividing it by a set number of pay periods-you have to withhold the appropriate amount of taxes from employee paychecks, pay your own payroll taxes, and follow numerous paycheck rules. What to know about California paychecks and taxes
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