Payroll Services in California: Costs, Taxes and Best Providers (2026)
Payroll services for a California business cost $44 to $130 per month for 1 to 10 employees at entry-tier list prices as of November 2026, and every major provider files California payroll taxes. Because California has local or special payroll taxes, choose a provider that files local returns automatically.
Prices verified November 2026
What California employers must handle
California has state income tax, State Disability Insurance (SDI) withholding, Paid Family Leave and some of the strictest overtime and final-paycheck rules in the country. Make sure any provider you choose supports daily overtime and California-specific pay stub requirements.
| State income tax withholding | Yes |
| Local or special payroll taxes | Yes — confirm your provider files them |
| State unemployment insurance (SUTA) | Yes — every state; rate assigned to your business annually |
| Federal (FICA, FUTA, income tax) | Yes — handled by every provider listed |
| Where to register | California EDD |
Minimum wage, SUTA rates and new-hire reporting deadlines change; check California EDD for current figures. Every provider on this page files California payroll taxes.
Payroll prices for a California business
| Provider (entry plan) | Base / mo | Per employee | 1 emp. | 5 emp. | 10 emp. | 25 emp. |
|---|---|---|---|---|---|---|
| ADP — Essential (quote; est.) | $79 | $5 | $84* | $104* | $129* | $204* |
| Paychex — Flex Essentials (higher tiers quoted) | $39 | $5 | $44 | $64 | $89 | $164 |
| Gusto — Simple | $49 | $6 | $55 | $79 | $109 | $199 |
| OnPay — Payroll Essentials | $49 | $6 | $55 | $79 | $109 | $199 |
| QuickBooks Payroll — Workforce Payroll (Core) | $50 | $7 | $57 | $85 | $120 | $225 |
| Rippling — Platform (required) (higher tiers quoted) | $40 | $8 | $48 | $80 | $120 | $240 |
* Estimate for quote-only providers based on publicly reported quotes; ADP bills per pay run so a weekly payroll costs more. Prices are list prices before promotions.
Want California providers to quote your real headcount? Providers quote below list for the right customer. Tell us your headcount and up to 4 of them compete. Free, about a minute.
Get my quotesBest payroll providers for California employers
Paychex
Owners who want a named human to call, businesses considering a PEO later, and anyone bundling payroll with workers' comp or retirement.
ADP
Businesses that expect to grow past 50 employees, need benefits and retirement plans from one vendor, or want the most recognized brand when talking to lenders and accountants.
OnPay
Small businesses, farms, nonprofits and restaurants that want the lowest all-in price with no surprise fees, and free white-glove setup.
Get California payroll quotes
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- Prices verified November 2026
Other states
- Alabama
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- Ohio
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- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
- Washington, D.C.
Frequently asked questions
Does California have state income tax on wages?
Yes. California employers withhold state income tax from employee pay and remit it to California EDD.
What is the cheapest payroll service in California?
OnPay and Gusto Simple both list at $49 per month plus $6 per person. Paychex Flex Essentials lists at $39 plus $5 but adds filing fees. For local tax filing, confirm the provider files, not just withholds.
Do I need to register my business for payroll in California?
Yes. Register with California EDD and with the state unemployment agency before your first payroll. Your provider can file on your behalf but usually needs the account numbers from you.