June 24, 2026

Leave Accounting Letter #26-007 – Usage Only Benefits – Fiscal Year Reset 

Action Required: Share the following information with all human resources (HR) office employees. 

Description: ​ Leave Accounting Letter​ #26-007 – Usage Only Benefits – Fiscal Year Reset is available on the State Controller’s Office website. 

Population Affected: ​All HR Offices​.

Payroll Warrant Updates

Action Required: Share the following information with all human resources (HR) office employees.

Description: The State Controller’s Office (SCO) Disbursements Bureau recently transitioned to a new paper for printing payroll warrants, which now includes both a perforation line and a fold line.

They have received reports that some recipients are inadvertently tearing along the fold rather than the perforation. Doing so can alter the placement of the MICR line (the string of numbers at the bottom of the warrant), making it difficult for banks to scan and process the warrant electronically.

To help prevent this issue, a visual indicator has been added to clearly identify the perforation line. Please ensure warrants are torn or cut only along the perforation line.

In addition, based on feedback from customers and banking partners, the placement of the word “To” has been adjusted to appear directly next to the payee name. This change was implemented effective June 16 to help reduce processing issues and warrant rejections.

If you have any questions, please contact the Disbursements Bureau at DisbGeneral@sco.ca.gov or (916) 445-7789.

SCO encourages employees who receive paper warrants to Make the Switch to direct deposit so they can view their payroll data on Cal Employee Connect (CEC) instead.

Population Affected: All HR Offices