Final answer:
Employees can face several types of state taxes including privilege taxes, disability taxes, unemployment insurance, and income taxes. State unemployment insurance is a tax paid by employers to aid employees who have lost their jobs. Other withholdings from wages cover income tax and various insurances.
Step-by-step explanation:
Employees may be subject to various taxes depending on state laws, which may include:
- State privilege taxes
- State disability taxes
- State unemployment insurance
- State income taxes
State unemployment insurance is a tax that employers pay into a fund to provide benefits to workers who have lost their jobs. Additionally, employers are responsible for withholding a range of taxes from employees' wages, such as income tax and contributions to social security. These withholding taxes serve as advance payment of income tax and insurance contributions. Some states also have additional payroll related charges such as disability taxes which are meant to fund state insurance programs for workers who are unable to continue working due to disabilities.