California State Controller's seal

California State Payroll System Project

California State Payroll System

After an assessment of current information technology and industry standards, the California State Payroll System (CSPS) Project will modernize the human resource management and payroll system used by 227,000 state government employees.

The State Controller’s Office will work with the California Department of Technology using the Project Approval Lifecycle (PAL) to improve the quality, value, and likelihood of success with clear objectives, accurate costs, and realistic schedules. The State Controller’s CSPS team is now carrying out alternative analysis activities – the second of four PAL stages.

21st Century Project (MyCalPAYS)

From 2006 to 2013, the State Controller’s 21st Century Project, also known as MyCalPAYS, was intended to replace 30-year-old legacy systems and improve staff management processes such as payroll, benefits administration, and timekeeping for all state government employees. In 2013, after years of the vendor’s unsuccessful design and implementation issues, the State Controller terminated the contract and filed a lawsuit against SAP Public Services, Inc. (the project vendor at the time). SAP later filed counter-claims.

In a 2016 settlement agreement, SAP agreed to pay $59 million and abandon its own claims against the State Controller, representing a 100-percent recoupment of the state’s money paid to the vendor plus a $9 million premium. The State Controller closed out the 21st Century Project and launched the California State Payroll System (CSPS) Project to modernize the human resource management and payroll system for state government employees.