Payroll in Los Angeles
MangoBooks runs payroll for small businesses in Los Angeles. We calculate each payroll with federal and California withholding, make the payroll tax deposits, file the quarterly and annual payroll returns, and prepare W-2s and 1099s at year end.
We also set up and run owner salary for S corporations. When we prepare the company and personal returns as well, the owner's wages on those returns come from the same payroll records.
What's Included
- Payroll calculations for each pay period, with federal and California income tax withholding based on each employee's Form W-4 and California Form DE 4.
- Federal payroll tax deposits and the quarterly Form 941.
- The annual federal unemployment tax return, Form 940.
- California payroll tax deposits and the quarterly DE 9 and DE 9C wage reports to the EDD.
- New employee reports to California's New Employee Registry, form DE 34, which are due within 20 days of the start date.
- Forms W-2 and W-3 at year end, and Forms 1099-NEC for contractors.
- Owner salary for S corporation shareholder-employees.
- Employer registration with the EDD for a business hiring its first employee.
Who This Is For
- Small businesses with employees that want payroll and the books handled together. See Small Businesses and Their Owners.
- S corporation owners who pay themselves a salary.
- New businesses hiring their first employee.
How It Works
- Consultation. We talk by phone or video about your employees, pay schedule and current payroll setup.
- Engagement letter. We send a written engagement letter that sets out the payroll scope and the monthly fee before work begins.
- Setup and document exchange. You send employee forms, pay rates and your federal and California account details electronically. If you are changing payroll providers mid-year, we also need each employee's year-to-date totals.
- Each payroll. You confirm hours and any changes; we run the payroll and make the tax deposits when they are due.
- Quarterly and year end. We file the federal and California quarterly returns and prepare the W-2s, W-3 and 1099s.
What to Bring
- Your federal employer identification number and EDD employer account number, if the business already has them.
- Form W-4 and DE 4 for each employee, with pay rates and pay schedule.
- Year-to-date payroll registers and prior quarterly returns, if you are changing providers during the year.
- Names, addresses and taxpayer identification numbers for contractors.
The full list is in our New Client Checklist.
Key Dates
- Form 941 is due April 30, July 31, October 31 and January 31.
- California DE 9 and DE 9C are delinquent if not filed by the last day of the month after each quarter ends: April 30, July 31, October 31 and January 31.
- Forms W-2 and W-3 go to employees and to the Social Security Administration by January 31; for 2026 wages the date is February 1, 2027, because January 31 falls on a Sunday.
- Form 1099-NEC is due to the IRS and to each contractor by January 31; for 2026 payments the date is February 1, 2027.
- Form 940 is due January 31, or by February 10 when all federal unemployment tax was deposited on time.
When a federal or California due date falls on a Saturday, Sunday or legal holiday, the return can be filed on the next business day.
Fees
Payroll typically ranges from $175 to $400 per month.
Factors affecting fees: the number of employees, how often you run payroll, whether the business pays contractors as well as employees, and whether payroll starts mid-year with prior quarters to bring in. Fees depend on the scope of work and are set out in a written engagement letter before work begins. See the Fee Guide.
Frequently Asked Questions
Does an S corporation owner need to be on payroll?
An S corporation must pay reasonable compensation to a shareholder-employee for the services they provide before it makes non-wage distributions to that shareholder. We set the owner's salary with you and run it through payroll with the required withholding and filings.
When does a new business need to register with the EDD?
A California business must register as an employer within 15 days after it pays more than $100 in wages in a calendar quarter.
How often are payroll taxes deposited?
Federal deposits follow a monthly or semiweekly schedule, set each year from the taxes reported during a lookback period. California deposit dates for withheld income tax and State Disability Insurance follow the federal schedule and the amount of California tax withheld.
Do quarterly reports need to be filed if no wages were paid?
Yes. An employer that paid no wages during a quarter still files the DE 9 and DE 9C with the EDD for that quarter.
How are independent contractors handled?
Contractors are paid outside payroll and reported on Form 1099-NEC. Starting with payments made in 2026, the form is required when a contractor is paid $2,000 or more in a year, and the IRS may adjust that amount for inflation from 2027. The form is due to the IRS and to the contractor by January 31.
Schedule a Consultation
Call (213) 255-4665 or send us a short message about your situation.
Please do not include Social Security numbers, bank account numbers or tax documents in the form.