PEO services in Arizona
A PEO helps Arizona employers manage multi-state payroll, and benefits while staying compliant with Arizona's rules. As of 2026, Arizona's minimum wage is $15.15/hr and the state unemployment (SUTA) taxable wage base is $8,000. ONYX benchmarks the top PEOs against your current setup so Arizona companies stop overpaying by 15–40%.
Arizona employer snapshot (2026)
The structural facts that shape payroll and benefits cost in Arizona. Verify current figures with the state agency before relying on any single number.
Indexed to inflation annually (2016 ballot measure); $15.15 eff. 1-1-2026.
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
At-will state with a voter-set indexed minimum wage and a statewide paid sick time law (Proposition 206). Flat state income tax applies to wages.
Major metros we serve in Arizona: Phoenix, Tucson, Mesa, Scottsdale.
Common Arizona PEO questions
Can a PEO operate in Arizona?
Yes. PEOs operate in Arizona and handle Arizona payroll tax, the $8,000 SUTA wage base, benefits, and workers' comp through competitive carriers. ONYX benchmarks the PEOs that operate in Arizona against your current setup.
What is the 2026 minimum wage in Arizona?
Arizona's minimum wage is $15.15/hr as of 2026. Indexed to inflation annually (2016 ballot measure); $15.15 eff. 1-1-2026.
How much can a Arizona 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 Arizona census for free in 3–5 business days.
PEO services in other states
Compare PEOs for your Arizona 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.