Arizona Labor Burden Calculator
Find the fully burdened labor rate in Arizona, pre-filled with local SUI and tax estimates.
Pre-filled with Arizona estimates: SUI 2.0% on a $8,000 wage base, state income tax ~2.5%. Edit any field below.
Social Security + Medicare (7.65%)
Federal unemployment (effective 0.6%)
Health, retirement, etc.
$37.13/hr
Fully burdened rate
23.8%
Burden added
$77,220
Annual cost
Burden breakdown
A $37.13/hr fully burdened rate is real money per placement. Skillora's AI screens every candidate so you only pay for the right ones.
Estimates only, using editable 2025 US defaults. Tax and insurance rates vary by employer, classification, and locality. Verify with a licensed accountant before relying on these figures.
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Calculating the fully burdened labor rate in Arizona starts with federal payroll taxes and adds the state-specific pieces. Flat 2.5% state income tax and a low SUI wage base. This calculator pre-fills Arizona's estimated new-employer SUI rate of 2.0% on a $8,000 wage base, then lets you layer in workers compensation, benefits, and overhead.
Arizona's estimated new-employer SUI rate of 2.0% on a $8,000 wage base caps state unemployment at $160 per employee per year, below the typical range of $219 to $434 and the 45th highest of the 51 jurisdictions on this site. At a $30 pay rate the wage base is met in week 7, and SUI stops accruing for the rest of the year. Arizona also taxes wages, at an estimated 2.5% effective rate, which the employee pays rather than the employer. For a staffing agency billing in Arizona, the employer side is light because SUI stops early in the year. The state income tax falls on the worker, which matters for the 1099 vs W2 take-home comparison more than for the bill rate.
The result is the true hourly and annual cost of an employee in Arizona: the number you need before setting a bill rate or comparing a W2 hire against a 1099 contractor.
Labor burden in states bordering Arizona
Labor burden in the most populous states
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Labor burden by industry: Construction · Staffing Agency · Healthcare · Field Service · Manufacturing · Hospitality