June 14, 2024
Annual Deduction Service Charge Rate Change
Action Required: Share the following information with all appropriate staff.
Description: Each year the State Controller’s Office (SCO) 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 the California Department of Human Resources for employee programs.
Effective with the July 2024 Mid-month business month (business month remittances issue date July 16, 2024), the SCO deduction service charge rates are as follows:
| Deduction Type | File Transfer Protocol Input | Paper Input |
| Miscellaneous | $0.51 | $0.91 |
| Deferred Compensation | $0.51 | |
| CSU Tax Sheltered Annuity | $0.51 | |
| Health Benefits | $0.51 | |
| Dental, Life, LTD, Vision & Legal Benefits | $0.51 | $0.91 |
The revised rates will also be posted to the SCO website.
Population Affected: All Deduction Clients
Presentation: Transaction Specialists' Educational Forum – June 2024
Action Required by Department: Share the following information with all human resources personnel, payroll, and benefits specialist staff.
Description: The June 2024 Transaction Specialists’ Educational Forum presentation is now available on the State Controller’s Office (SCO) website. To access previous forum presentations, visit the Transaction Specialists' Educational Forum webpage.
Population Affected: All HR Offices
Presentation - Transaction Supervisors’ Forum – May 2024
Action Required by Department: Share the following information with all human resources Transaction Supervisors and Managers.
Description: The May 2024 Transaction Supervisors’ Forum presentation is now available on the State Controller’s Office (SCO) website. To access previous forum presentations, visit the Transaction Supervisors’ Forum webpage.
Population Affected: All HR Offices