Classification checked, not assumed
The single most expensive payroll error in California is a misclassified contractor. We test for it on day one.
Payroll
California payroll is a compliance problem wearing a payroll costume
Running payroll is the easy part. Staying on the right side of the EDD, wage orders, sick-leave accrual and worker classification is where employers actually get hurt.
The expensive mistakes are not the maths
Payroll software calculates withholding correctly. What it does not do is tell you that the person you are paying on a 1099 is legally your employee, that your sick-leave accrual method does not satisfy California law, or that your pay stubs are missing an itemisation the Labor Code requires.
Those are the findings that turn into EDD assessments, back taxes, penalties, interest and — increasingly in California — private wage-and-hour claims.
What we handle
Full-cycle payroll: pay runs on your schedule, direct deposit, withholding, federal and California deposits, quarterly returns (Forms 941 and DE 9/DE 9C), annual W-2s and 1099-NECs, and new-hire reporting.
Around it, the part most providers skip: reviewing how each worker is classified, checking that compensation for owner-employees is defensible, and keeping pay stubs and sick-leave accruals compliant with California requirements.
Included
What you get
Payroll processing
Weekly, bi-weekly, semi-monthly or monthly. Direct deposit, pay stubs and an employee self-service portal.
Tax deposits & filings
Federal 941/940, California DE 9 and DE 9C, deposits made on schedule, year-end W-2 and 1099-NEC filing.
Worker classification review
Every contractor tested against the California ABC test before an auditor does it for you.
Reasonable compensation analysis
For S-corporation owners, a documented, defensible salary figure — the number the IRS looks at first.
Sick leave & PTO tracking
Accrual set up to satisfy California paid sick leave rules and shown correctly on the stub.
Garnishments & benefits
Child support orders, levies, retirement deferrals and health premium deductions handled inside the payroll.
Why it matters
What changes for you
One firm, one set of numbers
Payroll, books and tax in the same office means the general ledger always agrees with the filings.
Audit support included
If the EDD comes calling, the people who ran the payroll are the ones who defend it.
Owner compensation done properly
Set too low and the IRS reclassifies distributions; too high and you overpay employment tax. We document the middle.
The process
How the engagement runs
01
Compliance review
We look at your current set-up, classifications and pay stubs and flag anything exposed.
02
Set-up & migration
Employees, rates, accruals and agency accounts moved across, with year-to-date figures reconciled.
03
Run payroll
You approve hours, we do the rest — deposits, filings and stubs all handled.
04
Quarterly & annual
Returns filed on time, W-2s and 1099s issued, and a classification re-check each year.
Questions
Payroll, answered
Still not sure? Ask us directly — the first conversation costs nothing and we will tell you honestly whether this is what you need.
Not if California law says they are employees. Under the ABC test the worker's preference is irrelevant, and the liability for getting it wrong falls entirely on the business — back employment taxes, penalties and interest. We will review each role and tell you where you stand before an auditor does.
Enough to be reasonable for the work you actually perform, based on your role, hours, industry and the company's revenue. There is no magic percentage, despite what you may have read. We produce a documented figure you can defend.
Yes. We migrate year-to-date wages, withholding and accruals so W-2s at the end of the year are complete and correct across both providers.
We represent you. Because we run the payroll, the records the auditor asks for already exist in the form they want them.
Related
Often needed alongside this
Bookkeeping & Monthly Close
Reconciled every month, closed on a schedule, and delivered with a short note explaining what changed. Not a shoebox reconstructed in March.
Learn more
Business Formation & Entity Structuring
The entity you register and the way it is taxed are two separate decisions. Most people make only the first one, and pay for it every year afterwards.
Learn more
IRS & California FTB Representation
An Enrolled Agent holds unlimited rights of practice before the Internal Revenue Service. Sign a Form 2848 and every letter, every call and every deadline becomes ours to manage.
Learn more
Let’s talk about your payroll.
A thirty-minute call, no charge, and a fixed quote before anything begins. If we are not the right firm for this, we will tell you that too.