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Cost of hiring an employee in Arizona

A full-time hire at $18/hour costs about $40,768 a year before benefits — $20.38 per hour actually worked with 10 days off.

Last updated October 28, 2026 · 2026 rates

SUTA new-employer rate
2%
verified
SUTA wage base
$8,000
verified
Minimum wage
$15.15
verified
Workers' comp (typical)
$0.70/$100
rank 46/51 (1 = priciest)

1About the hire

Adjust tax rates (from your notices or quotes)

2What this employee costs you

Frequently asked questions

How much does it cost to hire an employee in Arizona?

A full-time worker at $18.00/hour ($37,440 a year) with 10 PTO days costs about $40,768 a year before benefits: employer payroll tax $2,864, FUTA $42, Arizona unemployment $160 and typical workers' comp $262. That's $20.38 per hour worked.

What is the Arizona SUTA rate for new employers in 2026?

2% on the first $8,000 of each employee's wages (U.S. DOL, January 2026).

What is the Arizona minimum wage in 2026?

$15.15 per hour.

How much is workers' comp in Arizona?

The 2024 Oregon premium-rate study puts Arizona's all-industry index rate at $0.70 per $100 of payroll (rank 46 of 51; national median $1.09). Your real rate depends on job class and claims history.

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