CA Payroll Done Right.
AB5 compliance, all CA filings, employer-side risk management
CA payroll has 7 tax layers, AB5 contractor rules, wage notice requirements, and Labor Code 2802. One mistake = $5K-$25K penalty per worker. We handle it.
What\'s Included in Payroll Service
Beyond just running checks — full CA compliance.
Bi-Weekly or Monthly Runs
Direct deposit, paystubs, time tracking integration. Gusto or QuickBooks Payroll — whichever fits your stack.
All Federal Filings
Form 941 (quarterly), 940 (FUTA annual), W-2 + W-3 (year-end), 1099-NEC for contractors. Filed automatically, copies to you.
All CA Filings
DE-9 quarterly contribution return, DE-9C employee wages, DE-3HW new hire reporting (24-hour rule). Don\'t forget these — penalties are severe.
Workers Comp Coordination
Required for almost every CA employer. We connect with State Fund or your preferred carrier. Tracking pay-as-you-go vs annual deposit.
Wage Notices (Labor Code 2810.5)
CA requires written wage notice at hire, with specific information. We provide compliant templates and track delivery.
Sick Leave Tracking
CA SB 616: 5 days / 40 hours annual sick leave required. We help track accruals + carryover.
Final Pay Compliance
CA requires final paycheck same day for fired employees, within 72 hours for voluntary quits. Late = 30-day "waiting time" penalty. We coordinate timing.
Expense Reimbursement (LC 2802)
CA requires reimbursement of business expenses incurred by employees (cell phone, mileage, home internet for WFH). We set up accountable plans to handle this properly.
AB5 Worker Classification
The "ABC test" classifies workers strictly as employees unless they meet 3 prongs. We audit your contractor relationships and reclassify if needed before EDD does.
What Could Go Wrong (and the Penalties)
Real penalty exposure for getting CA payroll wrong.
Worker Misclassification
$5K-$25K per misclassified worker + back wages + SUI + SDI + interest. Plus class-action exposure.
Late or Missing Wage Notice
$50 per employee per pay period missed. For 5 employees missed for 1 year = $13,000.
Late Final Pay
"Waiting time penalty" = full daily wage for up to 30 days. A $25/hr employee = $6,000 penalty.
Missed Sick Leave
$50 per employee per missed accrual + actual sick pay owed + class-action exposure under PAGA.
Late Payroll Tax Deposits
2-15% of unpaid amount depending on lateness. Plus Trust Fund Recovery Penalty (100% of withheld taxes) for repeat offenders.
No Workers Comp
$1,500 per employee minimum penalty, plus criminal liability under Labor Code 3700.5 — possible misdemeanor for officers.
CA Payroll — Frequently Asked Questions
What's the monthly cost?
Why CA payroll is different from other states
Do I need workers comp?
What about contractors vs employees?
Can you file 941, 940, DE-9, W-2 for me?
CA Payroll Done by a CPA, Not a Bookkeeper
Free 30-min payroll audit. Spot compliance gaps before EDD does.