Cost to hire an employee in Arizona
On top of a $50,000 salary, a Arizona employer pays roughly $4,377 in payroll taxes and insurance before benefits, about 8.8% of wages.
Last verified November 2, 2026. Sources: oui.doleta.gov, oregon.gov.
What a Arizona employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Arizona unemployment (SUTA) | 2% new employer 0.03%–8.36% experienced | First $8,000 |
| Workers' compensation | ~$0.70 per $100 | Varies by job class |
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,125 | 8.9% | $38,125 |
| $50,000 | $4,377 | 8.8% | $54,377 |
| $75,000 | $6,465 | 8.6% | $81,465 |
| $100,000 | $8,552 | 8.6% | $108,552 |
| $150,000 | $12,727 | 8.5% | $162,727 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Arizona vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Arizona | $8,000 | 2% | $4,377 |
| California | $7,000 | 3.5% | $5,147 |
| Colorado | $30,600 | 3.05% | $5,545 |
| New Mexico | $34,800 | 1% | $4,740 |
| Nevada | $43,700 | 3% | $5,543 |
| Utah | $50,700 | 1.2% | $4,782 |
Frequently asked questions
- How much does it cost to hire an employee in Arizona?
- On a $50,000 salary, employer payroll taxes and insurance add about $4,377 (8.8%), before benefits, for a total of $54,377.
- What is the Arizona SUTA rate for new employers?
- New employers generally pay 2% on the first $8,000 of each employee's wages. Experienced employers pay between 0.03% and 8.36%.
- Do Arizona employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.