Service Charge Rates

Each year the State Controller’s Office performs an extensive audit of the total cost of performing payroll deduction services for its clients. The cost of performing these services is passed on to our clients in the form of a "service charge". These charges, for the most part, are immediately withheld from the resulting remittance to the client at mid-month and/or month-end. In some cases, these charges are billed to the client separately from the normal deduction remittance process. These service charge rates are assessed for each payroll transaction per Government Code 1153(d). 

Additional fees may be assessed by CalHR for employee programs. 

Effective with the July 2024 Mid-Month business month (business month remittances issued date July 16, 2024), the State Controller’s Office deduction service charge rates are as follows: