State Taxes

State income tax withholding and unemployment taxes across all 50 states.

If payroll taxes were simple, every state would use the same rules. Instead, you have 50 states with 50 different systems — different withholding rates, different unemployment programs, different wage bases, different filing schedules, and (of course) different forms.

Have employees in California, Texas, and New York? That’s three separate registrations, three different unemployment rates, and three sets of quarterly filings. Pluvel handles all 50 states so you don’t need to become an expert in each one.

Types of state payroll taxes

Tax Type	Who Pays	Purpose
State Income Tax	Employee (withheld)	Funds state government
State Unemployment (SUTA)	Employer	Funds state unemployment benefits
State Disability (SDI)	Employee or Both	Disability insurance (CA, NJ, NY, etc.)
Paid Family Leave (PFL)	Employee or Both	Family leave benefits (some states)
Local Income Tax	Employee (withheld)	City/county taxes (some locations)

State income tax withholding

How it works

1. Employee completes a state W-4 (or uses federal for states that allow it)
2. We calculate withholding based on state tax tables
3. Amount is deducted from each paycheck
4. We deposit to the state and file returns

States with no income tax

Nine states have no state income tax:

• Alaska
• Florida
• Nevada
• New Hampshire (dividends only)
• South Dakota
• Tennessee
• Texas
• Washington
• Wyoming

For employees in these states, you only withhold federal taxes.

Multi-state employees

If an employee works in multiple states (or lives in one, works in another):

Situation	How It’s Handled
Lives and works in same state	Tax that state
Lives in State A, works in State B	Usually tax work state (some exceptions)
Reciprocal agreement states	Tax residence state only
Remote workers	Complex—depends on state rules

We determine the correct state(s) based on employee addresses and work locations.

Reciprocal agreements

Some neighboring states have agreements where residents only pay tax in their home state:

State	Reciprocal With
Pennsylvania	Indiana, Maryland, New Jersey, Ohio, Virginia, West Virginia
Virginia	DC, Kentucky, Maryland, Pennsylvania, West Virginia
New Jersey	Pennsylvania

We apply reciprocity automatically based on employee addresses.

State unemployment (SUTA)

How SUTA works

1. States set a wage base (e.g., $7,000 to$56,500)
2. Your company is assigned a rate (new employers get a standard rate)
3. Rate adjusts based on claims history (experience rating)
4. You pay SUTA on wages up to the wage base

State wage bases (examples)

State	Wage Base	Typical New Employer Rate
California	$7,000	3.4%
New York	$12,500	4.0%
Texas	$9,000	2.7%
Florida	$7,000	2.7%
Washington	$68,500	1.0%

Wage bases and rates change annually. We update them automatically each year.

Experience rating

After you’ve been in business for a while (typically 2-3 years), your SUTA rate adjusts based on claims:

• Fewer claims → Lower rate
• More claims → Higher rate

You receive an annual rate notice from each state—enter your new rates in Settings → Tax → State Accounts.

State disability and paid leave

Several states require additional withholdings:

State Disability Insurance (SDI)

State	Who Pays	Rate
California	Employee	1.1% (2024)
New Jersey	Both	Employee 0.27%, Employer varies
New York	Employee	0.5% (capped)
Rhode Island	Employee	1.1%
Hawaii	Both	Varies

Paid Family Leave (PFL)

State	Who Pays	Benefit
California	Employee	Family bonding, care
New York	Employee	Family leave
New Jersey	Employee	Family leave
Washington	Both	Family and medical leave
Massachusetts	Both	Paid family and medical leave

We calculate and withhold these taxes automatically for employees in applicable states.

Setting up state taxes

1. Register with each state

   Before running payroll in a state, you need state tax accounts:

   • State withholding account number
   • State unemployment account number
   • Any additional program registrations (SDI, PFL)
2. Enter account numbers

   Go to Settings → Tax → State Accounts and add each state.

3. Enter your SUTA rate

   Input your assigned unemployment rate for each state.

4. Run payroll

   We handle calculation, deposit, and filing automatically.

State registration help

When you add employees in a new state, Pluvel can help with registration:

1. We detect the new state when you add the employee
2. You see a prompt to register or enter existing account numbers
3. For many states, we can register you automatically
4. For others, we provide links and instructions

Filing state returns

Filing schedules

Most states require quarterly filings, but schedules vary:

Pattern	States (Examples)
Monthly (large employers)	CA, NY (if liability exceeds threshold)
Quarterly	Most states
Annual reconciliation	Many states (January/February)

What we file

For each state where you have employees:

Return	Frequency	Contents
Withholding return	Quarterly (usually)	Wages paid, tax withheld
Unemployment return	Quarterly	Wages by employee, tax due
Annual reconciliation	Annual	Total wages and tax for year
Wage reports	Quarterly or Annual	Employee-level detail

Go to Payroll → Tax Filings and filter by state to see your filing schedule.

Common state tax issues

Employee moved to a new state

When an employee relocates:

1. Update their address in Employees → [Name] → Personal Info
2. We stop withholding for the old state
3. We start withholding for the new state
4. If you have no registration in the new state, we prompt you to register

State says I owe more than expected

Discrepancies can occur because:

• Late payments incur penalties and interest
• Rate changes weren’t updated in Pluvel
• Prior period adjustments

Upload the notice to Mailroom and we’ll help reconcile.

SUTA rate notice received

When you receive your annual rate notice:

1. Go to Settings → Tax → State Accounts → [State]
2. Click Update Rate
3. Enter the new rate and effective date
4. Future payrolls use the new rate

Local taxes

Some cities and counties levy their own income taxes (Philadelphia, New York City, Ohio cities, etc.):

1. We track local jurisdictions based on employee work addresses
2. Local taxes are calculated and withheld automatically
3. We file local returns where required

If you’re in a locale we don’t recognize, contact support to add it.

State tax resources

State	Agency	Portal
California	EDD	edd.ca.gov
New York	DOL	labor.ny.gov
Texas	TWC	twc.texas.gov
Florida	DOR	floridarevenue.com

We provide direct links to state portals in Settings → Tax → State Accounts.

Payroll tax overview

Learn how we handle all payroll taxes.