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In comparison to all federal taxes payed out by people within a state, that's a pretty miniscule sack of cash. The government is among the largest employers in every state true, but their payroll contributions aren't anything compared to the whole and they're paltry compared to things like business-derived tax revenue. States could withhold them, yes, but it wouldn't do much if they did.
It's not nothing, but it's really just not very much in context. Together those make up around the same amount trump is causally refusing to release from the SNAP emergency funds (~$33 billion) and that shortfall is being mitigated. Not trivially, it would be awesome to have that cash and people will feel it, but cutting those funds off for a full year would result in something like two weeks of reduced SNAP benefits or a couple days of federal furlough.
Alright, the scope of this discussion is creeping pretty drastically. There's still no one big sack of cash, and while yes california could save some money by not paying out their payroll taxes (btw where did you find the state payroll amount? I've been looking around and can't find it reported anywhere) it's still not very much money, especially as they would then be required to cover that portion of the budget that was once covered by the federal government ($600 Billion) who doubtlessly would stop funding California in response to blatant secession...
(What does "swag" mean here?)