Struggling to keep up with payroll and HR in Arizona? From local ordinances to statewide labor laws, we’ll help you save time and focus on growing your business.
Payroll services in Arizona
How Paylocity helps Arizona employers
Payroll that gets it done
- Seamless automation: Eliminate repetitive tasks with automated workflows that boost accuracy and save time.
- Smart safeguards: Built-in audits and integrations flag issues before they become errors.
- Transparent calculations: Easily manage overtime, bonuses, and local tax changes, even across overlapping jurisdictions.
Your extra HR team member
- Automated workflows: Use ready-made templates for common tasks or build custom processes that fit your business.
- One employee record: A single source of truth for employee data keeps everything organized and compliant.
- Effortless Time & Labor: Schedule quickly, track clock-ins and meal breaks, and standardize time-off requests.
Compliance made simple
- Compliance dashboard: Get a clear view of requirements with updated forms and expert HR support.
- Built-in data access: Quickly find work authorizations, EEO/FLSA data, pay records, certifications, and industry updates.
- Always up-to-date forms: Access the latest state and federal forms right from the platform.
Challenges facing employers in Arizona
Arizona maintains a complex compliance landscape that requires a careful balance between federal standards and state mandates.
As an employer, you must grapple with:
- Stricter employment regulations ranging from pay equity to paid sick leave.
- Higher state and local minimum wage rates.
- Additional safety and health requirements under the Arizona State OSHA plan.
Arizona payroll fast facts
Minimum wage
$15.15
State income tax rate
2.50%
Right to work laws
Yes
State unemployment tax rate
- 2.00% (new employers)
- 0.03% - 8.36% (experienced employers)
Last updated: January 23, 2026
Arizona tax and compliance resources
FAQs about paying employees in Arizona
Does Arizona have a state income tax?
Yes, Arizona state income tax uses a flat rate of 2.50%, meaning it applies to all taxpayers regardless of their income levels.
Is Arizona a right to work state?
Yes, Arizona is a right to work state under its constitution and revised statutes.
What are the Arizona final pay laws?
In Arizona, employees who voluntarily resign from a job must receive their final paycheck by the next regular payday. Involuntarily terminated employees, however, must receive their final paycheck within the next seven working days since the separation or the next regular payday, whichever comes first.
Are there Arizona work break laws?
No, Arizona currently has no laws regarding work breaks.
More than just payroll
Why employers in Arizona choose Paylocity
Hospitality group cooks up streamlined operations with a modern HCM
With Paylocity, one Arizona-based hospitality group has the perfect recipe for massive growth: faster onboarding, improved communication, and smoother processes.
