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Business phone system for payroll services firms in California

711 payroll services firms operated in California in 2023. Where they are, how big their teams are, and what phone service costs them.

Establishments
711CBP 2023
Employees
49,823mid-March 2023
Per 100k residents
1.8U.S. 1.6
State rank
1st of 51by count

The payroll and bookkeeping firm industry in California

California had 711 payroll services firms in 2023, according to Census County Business Patterns (NAICS 541214, Payroll Services). They employed 49,823 people in mid-March and reported $2.7 billion in annual payroll. That is the 1st highest count among the 51 states and DC with published figures. Payroll services firms make up 0.07% of the 1,029,689 business establishments in the state.

Per 100,000 residents (2024 estimate) California has 1.8 payroll services firms, 10.4% above the national rate of 1.6. The average establishment has 70.1 employees against 55.7 nationally. Payroll per employee is $54,953, 17.1% below the U.S. figure of $66,265.

Payroll services firms: California compared with the U.S., 2023
MeasureCaliforniaUnited States
Establishments7115,556
Mid-March employees49,823 (moderate noise)309,518
Annual payroll$2,737,907,000$20,510,140,000
Employees per establishment70.155.7
Payroll per employee$54,953$66,265
Establishments per 100,000 residents1.81.6

Census County Business Patterns 2023 (mid-March employment; annual payroll). Employees and payroll flagged high-noise are shown but not used in the text. Residents: Census Vintage 2024 estimates.

California's largest markets for payroll services firms

Census published payroll and bookkeeping firm counts for 17 metro or micropolitan areas that include part of California. The largest is Los Angeles, CA, with 250 establishments. Single-state metro and micropolitan areas account for 95% of the statewide total; the rest are outside any published area or in areas Census suppressed.

Payroll services firms by metro or micropolitan area, California, 2023
AreaEstablishmentsEmployeesPer 100k residents
Los Angeles, CA2509,5541.9
San Jose, CA1335216.7
San Francisco, CA671,2401.4
San Diego, CA659752.0
Riverside, CA451,0720.9
Sacramento, CA313751.3
Oxnard, CA16711.9
Fresno, CA151791.3
Stockton, CA81171.0
Modesto, CA7851.3
Santa Rosa, CA7—1.4
Bakersfield, CA6420.7
Vallejo, CA62351.3
Santa Maria, CA62841.3
Redding, CA4—2.2
Yuba City, CA3—1.6
Napa, CA3222.3

Source: Census County Business Patterns 2023; population from Census Vintage 2024 estimates.

Team sizes at payroll services firms in California

60.6% of California's payroll services firms with employees had fewer than five people in March 2023, compared with 46.0% nationally. 72.9% had fewer than ten. At that size the phone is shared, so routing (who rings, when, and what happens after hours) matters more than the number of desk phones.

Payroll services firms in California by employment size, 2023
Employment sizeEstablishmentsShareU.S. share
1–4 employees43160.6%46.0%
5–9 employees8712.2%14.1%
10–19 employees608.4%12.3%
20–49 employees527.3%12.5%
50 or more employees8111.4%15.1%

Employment-size classes count establishments by mid-March 2023 employment. Establishments with no March employees are excluded from the size classes, so shares are of establishments with employees. Source: Census County Business Patterns 2023.

Calls a payroll and bookkeeping firm in California has to catch

Payroll providers work on fixed deadlines, and a client who cannot reach them on payday is a client at risk. Calls about new hires, tax notices and pay corrections need to reach the right specialist quickly.

A few of the calls that come in to payroll services firms in California:

Business texting for payroll services firms

Firms text payroll cutoff reminders and approval requests.

Texting from a local number in California requires carrier registration (10DLC), a one-time $49 fee on Callata.

Callata vs. per-seat pricing for payroll services firms in California

Payroll services firms in California average 70.1 employees, so the comparison uses a 70-person team. Per-seat business phone plans bill every one of those people. At month-to-month list prices checked September 28, 2026, 70 users on RingCentral RingEX Core cost $2,100.00 a month and 70 on Ooma Office Pro cost $1,746.50. Callata comes to $1,399.00 a month for 70 users ($99 a month with 5 users included, then $20 per additional user), below both.

Over a year, that is $8,412 less than RingCentral for a payroll and bookkeeping firm in California of that size. Annual contracts lower some competitors' prices, so compare the plan you would actually sign.

Monthly list price for a 70-person payroll and bookkeeping firm
Provider (plan)Pricing basisPer monthPer year
Callata (Callata Office)$99 incl. 5 users, $20 per extra user$1,399.00$16,788.00
Quo (Starter)$19.00 per user$1,330.00$15,960.00
Nextiva (Core)$23.00 per user$1,610.00$19,320.00
Ooma (Office Pro)$24.95 per user$1,746.50$20,958.00
Dialpad (Standard)$27.00 per user$1,890.00$22,680.00
RingCentral (RingEX Core)$30.00 per user$2,100.00$25,200.00

Competitor prices are each vendor's published month-to-month list price per user for its lowest plan that includes business calling and texting, checked September 28, 2026: Quo Starter $19, Nextiva Core $23, Ooma Office Pro $24.95 (Essentials excludes texting; one-time $29.95 activation not included), Dialpad Standard $27, RingCentral RingEX Core $30 ($20 billed annually). Prices exclude taxes and fees and may change; annual contracts lower some competitors' prices.

Area codes in California

California has 41 geographic area codes in service according to NANPA. Callata includes up to 3 local numbers, so a payroll and bookkeeping firm can hold a number in more than one of them.

Area codes in California by assigned exchanges
Area codeExchangesTime zoneIn service sinceOverlay with
408787Pacific1959669
213786Pacific1947323, 738
310786Pacific1991424
323786Pacific1998213, 738
714786Pacific1951657
805786Pacific1957820
909786Pacific1992840
415785Pacific1947628
510785Pacific1991341
559785Pacific1998357
619785Pacific1982858
707785Pacific1959369
760785Pacific1997442
916785Pacific1947279
209784Pacific1958350
530782Pacific1997837
818781Pacific1984747
949745Pacific1998none
626734Pacific1997none
650716Pacific1997none

Exchanges are NANPA-assigned central office codes (NPA-NXX) in the rate centers matched to the area's named places. Source: NANPA utilized code and NPA reports.

How Callata works for payroll services firms in California

Callata is a business phone system priced at $99 a month with 5 users included, then $20 per additional user. Callata Office includes up to 3 local business numbers, unlimited inbound calling, 1,500 pooled outbound US and Canada minutes per user each month, a browser softphone that can also ring your cell, voicemail with transcription, call recording with AI summaries, business-hours routing and E911 on every number.

Porting a number you already use in California is free, and business texting is available once the carrier registration (10DLC) is approved; the registration carries a one-time $49 fee. Which specific numbers are open in a given area code depends on carrier inventory at the time you sign up.

AI agents are optional: an AI receptionist or scheduler can pick up when the team is busy or closed, take a message, send a text or email, or transfer the call. They draw on prepaid AI minutes ($0.25/minute), disclose that they are AI, and outbound AI calls require prior consent and are limited to 8am–9pm.

Avoid sending bank account or Social Security numbers by text.

Frequently asked questions

How many payroll services firms are in California?

711 in 2023, according to Census County Business Patterns. They employed 49,823 people in mid-March.

Which California metro area has the most payroll services firms?

Los Angeles, CA, with 250 establishments in 2023.

What does a phone system cost a 70-person payroll and bookkeeping firm?

$2,100.00 a month on RingCentral RingEX Core or $1,746.50 on Ooma Office Pro at month-to-month list prices (checked September 28, 2026); $1,399.00 on Callata ($99 a month with 5 users included, then $20 per additional user).

Do I need to register to text customers from a California number?

Yes. US carriers require business texting from local numbers to be registered (10DLC). On Callata the registration is a one-time $49 fee, and texting turns on once it is approved.