PEO services in California
A PEO helps California employers manage multi-state payroll, and benefits while staying compliant with California's rules. As of 2026, California's minimum wage is $16.90/hr and the state unemployment (SUTA) taxable wage base is $7,000. ONYX benchmarks the top PEOs against your current setup so California companies stop overpaying by 15–40%.
California employer snapshot (2026)
The structural facts that shape payroll and benefits cost in California. Verify current figures with the state agency before relying on any single number.
Indexed to inflation annually; $16.90 eff. 1-1-2026. Many localities and fast-food/healthcare sectors set higher rates.
Standard employer base; some states assign a higher base to max-rated employers.
Employers withhold state income tax.
Coverage available through private carriers and PEO programs.
The short answer
One of the most regulated employment environments in the US: mandatory paid sick leave, pay-transparency/pay-data reporting, strict meal-and-rest and overtime rules, and broad worker-classification standards (AB 5).
Major metros we serve in California: Los Angeles, San Diego, San Francisco, San Jose.
Common California PEO questions
Can a PEO operate in California?
Yes. PEOs operate in California and handle California payroll tax, the $7,000 SUTA wage base, benefits, and workers' comp through competitive carriers. ONYX benchmarks the PEOs that operate in California against your current setup.
What is the 2026 minimum wage in California?
California's minimum wage is $16.90/hr as of 2026. Indexed to inflation annually; $16.90 eff. 1-1-2026. Many localities and fast-food/healthcare sectors set higher rates.
How much can a California company save with a PEO?
Most companies ONYX works with save 15–40% of total people cost by moving to a better-fit PEO. We model the exact savings for your California census for free in 3–5 business days.
PEO services in other states
Compare PEOs for your California team.
Get a free, no-pressure PEO audit. We'll compare your current setup against the top PEOs and show you the savings in 3–5 business days.