TrueHireCost

True Cost of Hiring Calculator

Calculate Hiring Costs in Arizona

Estimate the fully loaded cost of a W-2 hire in Arizona — including 2% SUTA, $1/$100 workers’ comp, state income tax up to 2.5%, benefits, and overhead.

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True Cost of Hiring Calculator

Pre-configured with Arizona tax rates. Adjust salary, benefits, and overhead to model your specific hire.

Your Inputs

Annual Base Salary$80,000
StateArizona
Industry / Workers’ Comp ClassOffice / Clerical
Monthly Benefits$650
401(k) Employer Match4%
SUTA Rate2%
Workers’ Comp (per $100)$1
Annual Overhead$3,000

Total Annual Cost

$101,122

Loaded multiplier: 1.26× base salary

Cost ComponentAnnual
Base Salary$80,000
Employer Taxes (FICA, FUTA, SUTA)$6,322
Workers’ Comp$800
Benefits + 401(k) Match$11,000
Overhead$3,000

Open the interactive calculator to adjust every input and export a PDF report.

Arizona Employer Tax & Payroll Rates

Representative 2026 new-employer figures for Arizona. Confirm your experience-rated rate with the state agency.

Rate / RequirementValue
SUTA (State Unemployment) Rate2% on first $8,000
State Income TaxUp to 2.5% (employer withholds)
Workers’ Comp (office/clerical)$1 per $100 payroll
State Disability InsuranceNone
Minimum Wage (2026)$14.70/hour
State Workforce AgencyArizona Department of Economic Security

Every Arizona rate, traced to its source

Each figure on this page is classified and cited. Statutory rates are fixed by law; the new-employer SUTA rate and workers’ comp are representative estimates; benefit/overhead defaults are editable TrueHireCost modeling assumptions.

MetricValueTypeSourceLast verified
New-employer SUTA rate2%Representative estimateArizona Department of Economic SecurityAug 2026
SUTA wage base$8,000Official statutory figureArizona Department of Economic SecurityAug 2026
Workers’ comp (office/clerical)1 / $100 payrollRepresentative estimateDOL Office of Workers’ Compensation ProgramsAug 2026
State income taxUp to 2.5%Official statutory figureArizona Department of Economic SecurityAug 2026
State minimum wage$14.70/hrOfficial statutory figureArizona Department of Economic SecurityAug 2026
Employer FICA7.65% (SS 6.2% + Medicare 1.45%)Official statutory figureIRS Publication 15 (Circular E)Aug 2026
FUTA (effective)0.6% on first $7,000Official statutory figureIRS Publication 15 (Circular E)Aug 2026
Social Security wage base$184,500Official statutory figureSocial Security AdministrationAug 2026

How to read this table

  • Official statutory figures are set by law.
  • Published benchmarks come from BLS and SHRM.
  • Representative estimates vary by employer and carrier.
  • TrueHireCost modeling assumptions are editable defaults — see the methodology page.

Hiring Cost Example: $80,000 Salary in Arizona

An $80,000 office hire in Arizona costs approximately $101,122 once employer taxes, workers’ comp, benefits, and overhead are added — a 1.26× loaded multiplier.

ComponentAnnual Cost
Base Salary$80,000
Employer FICA (7.65%)$6,120
Arizona SUTA (2%)$160
FUTA (0.6%)$42
Workers’ Comp ($1/$100)$800
Benefits + 401(k) (4%)$11,000
Overhead$3,000
Total Loaded Cost$101,122

Hiring Landscape in Arizona

Semiconductors, aerospace, and healthcare dominate Arizona’s economy, anchored by the Phoenix and Tucson metros. When budgeting a hire in Arizona, the biggest state-specific cost drivers are the 2% SUTA rate (applied to the first $8,000 of wages), workers’ compensation at $1/$100, and state income tax withholding at up to 2.5%.

Arizona New-Hire Compliance Checklist

Key steps employers must complete when hiring in Arizona.

  • Register SUTA with AZ DES
  • Obtain workers’ comp coverage
  • Withhold flat 2.5% state income tax
  • Report new hires within 20 days

Arizona Payroll Mandates

  • • Workers’ comp required for 1+ employees
  • • Flat 2.5% state income tax
  • • No state paid family leave program

Arizona Tax & Payroll Resources

Arizona Department of Economic Security

Arizona workforce & unemployment agency

IRS Pub 15

Federal employer tax guide

DOL Wage & Hour

Federal wage & hour division

AZ Dept of Revenue

Arizona official resource

Explore More Hiring Costs

Arizona by Industry

Neighboring States

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Editorial Standards

Maintained by the TrueHireCost editorial team

TrueHireCost is an independent research and tooling project. Our content is written and maintained by the TrueHireCost editorial team — not by a licensed CPA, attorney, or HR certificant, and no named professional endorses or "verifies" these pages. Rates, wage bases, and benchmarks are collected from official public sources (IRS, U.S. Department of Labor, state workforce agencies, and the Bureau of Labor Statistics) and labeled with their source and last-reviewed date. State SUTA, workers’ comp, and minimum-wage figures are representative new-employer estimates and should be confirmed with the agency for your specific situation.

Found an outdated rate or a calculation that looks wrong? Email editorial@truehirecost.com and we’ll review and correct it. TrueHireCost is an informational tool, not professional tax, legal, or HR advice — consult a qualified professional before making hiring or payroll decisions.

Last updated 2026-08-24

Data Sources & Methodology

Every rate and formula is checked against the issuing agency before publication. Last updated 2026-08-24.

IRS

FICA, FUTA tax rate & wage base

U.S. DOL

FUTA credit, federal wage & hour

State Workforce Agencies

SUTA rates, wage bases, new-employer rates

BLS

Industry salary benchmarks & turnover

Frequently Asked Questions

What is the true cost of hiring an employee in Arizona?

The fully loaded cost of an $80,000 hire in Arizona includes the 2% SUTA rate, $1/$100 workers’ comp, state income tax withholding up to 2.5%, benefits, and overhead. Use the TrueHireCost calculator above for a Arizona-specific estimate.

What is the SUTA rate in Arizona?

The representative new-employer SUTA rate in Arizona is 2%, applied to the first $8,000 of wages per employee. Your experience-rated rate may differ — confirm with the Arizona Department of Economic Security.

Is workers’ comp required in Arizona?

Workers’ comp required for 1+ employees. Check the Arizona labor agency for the exact employee-count threshold that applies to your business.

Does Arizona have a state income tax?

Yes. Arizona levies a state income tax with a top marginal rate of 2.5%. Employers must withhold state income tax from employee wages.

For Estimation Purposes Only

TrueHireCost provides hiring cost estimates for informational purposes only and is not professional tax, legal, or HR advice. Actual employer costs vary by experience rating, industry classification, carrier, and jurisdiction. Consult a qualified CPA, tax advisor, or HR professional before making hiring or payroll decisions.