Capital City
Phoenix
Timezone
MST
(
UTC-7
)
Paid Leave
No legal requirement
Income Tax
2.5%
Employer Tax
14.3% - 30.23%
Capital City
Phoenix
Timezone
MST
(
UTC-7
)
Paid Leave
No legal requirement
Income Tax
2.5%
Employer Tax
14.3% - 30.23%
PEOs offer small businesses access to competitive benefits, such as health insurance and retirement plans, often at reduced costs due to pooled purchasing power. This enables businesses to provide attractive benefits packages without meeting high employment minimums.
Check out our comprehensive state hiring guide.
Copied to Clipboard
Take your business to new places
FAQS
A PEO ensures compliance with Arizona’s wage and hour laws, tax requirements, and employee classification rules, reducing legal risks for businesses.
Yes, PEOs operating in Arizona must comply with state regulations and are often certified to provide services within the state’s legal framework.
Absolutely. PEOs are especially beneficial for small and mid-sized businesses in Arizona, as they provide access to competitive benefits and ensure compliance with complex labor laws. Also, partnering with a PEO allows small businesses to offer their employees access to big-company benefits plans they’d likely otherwise struggle to afford.
Yes, a PEO can help with compliance in Arizona. One key area where a PEO provides support is with minimum wage laws, which vary significantly by state, and sometimes even by county or city. For example, as of 2024, 30 states and Washington, DC, have minimum wages above the federal rate, ranging from $8.75 to $17.00 per hour. PEOs stay updated on these changes and ensure your business remains compliant, especially if you have a distributed workforce.
Here are other ways PEOs assist with compliance in Arizona:
- Payroll regulations: A PEO helps with proper worker classification, filing tax forms, managing payroll taxes, and adhering to wage and hour laws, such as overtime regulations.
- Benefits laws: PEOs ensure compliance with state-specific and federal benefits regulations, including laws related to COBRA, FSAs, HSAs, and other benefit programs.
- Labor laws: A PEO can manage workers’ compensation, ensure compliance with Equal Employment Opportunity (EEO) laws, display required labor posters, and support OSHA inspections.
By partnering with a PEO, you reduce the risk of costly fines and penalties related to non-compliance, as they handle complex regulations for you.
With Playroll PEO, you can switch on and off the PEO any time you want, moving seamlessly onto our workforce management platform. All your data and integrations stay intact in your account.
Where to next?
Your “everything you ever needed to know” guides to compliant employment around the United States.