The federal government and the state of California both have requirements for withholding taxes from employees. These taxes are due when the payroll is met or if you’re small enough on a quarterly basis. The key issue is you should be working with your accountant to figure out which taxes have to be paid, what the amounts are, take the appropriate deductions, and set the money aside. A separate issue is if we’re dealing with independent contractors, but that’s a topic that we’ll have to cover another time.