Construction Payroll Services in Phoenix

$75 per employee, per month. That's the flat PEO administrative fee for approved Phoenix construction employers. Workers' compensation premiums, employee benefit premiums, wages, employer payroll taxes, and any other applicable costs are calculated separately and listed in your proposal before you agree to anything. See full pricing details.

Construction payroll built for how Valley contractors work

Phoenix construction payroll rarely looks like a 9-to-5 office payroll. Crews move between jobsites from Buckeye to Queen Creek in the same week. Summer schedules shift work to early mornings, split shifts, and long days that push hours into overtime. One worker might be paid at different rates for different kinds of work, and your insurer and project owners want reports that tie labor back to jobs and classifications.

The payroll setup you choose should handle that without extra spreadsheets:

• Weekly and biweekly payroll processing, with payroll tax administration
• Overtime and multiple pay rates for the same employee
• Time tracking across jobsites and job-cost reporting, depending on provider and arrangement
• Workers' compensation payroll reporting by classification
• Certified payroll support where available
• Onboarding and human resources help through a PEO arrangement

Your proposal shows which of these are included and which cost extra.

Three ways to set up payroll for your Phoenix crew

• Payroll only. Payroll processing and tax filings for your crew, without changing your benefits or how you manage your people. Priced separately from the PEO rate.
• Standalone employee benefits. Medical, dental, vision, retirement, disability, and life insurance options, whether or not you change payroll.
• PEO. A professional employer organization shares certain employer tasks with you, like payroll and benefits administration, for a flat $75 per employee per month once approved. You still run your business and your crews.

None requires the others. See what each option covers and what you still handle.

Benefits that help you keep good hands in a tight Valley labor market

Phoenix contractors compete for the same electricians, framers, and equipment operators as the big outfits building data centers, fabs, and master-planned communities across the metro. Offering health, retirement, and other benefits gives smaller employers a way to compete for experienced workers and keep the crew they've trained. Benefit options come through our provider partners, subject to plan and eligibility requirements, and premiums are separate from the $75 PEO administrative fee.

Certified payroll on Phoenix-area public work

Federally funded or assisted public construction around the Valley, such as some highway, transit, airport, and water projects, can carry Davis-Bacon prevailing wage rates and weekly certified payroll reports. Those requirements often flow down to subcontractors, so you may need certified payroll even if you've never bid public work directly. Your contract documents say whether it applies. Phoenix's own prevailing wage ordinance for city contracts over $4 million is a different matter: on February 27, 2026, a three-judge panel of the Arizona Court of Appeals, Division One, in an opinion by Presiding Judge Michael S. Catlett, held that a 1984 voter-approved state law (A.R.S. § 34-321) bars it (Associated Minority Contractors of Arizona v. City of Phoenix, No. 1 CA-CV 24-0658; see also KJZZ coverage). What the ruling means for contractors. Check for later developments before you bid. Learn what certified payroll is and what to ask a provider.

Payroll basics for Phoenix employers

General information, not legal or tax advice. Figures checked October 2026; most change each January.

• Minimum wage. Phoenix doesn't set its own minimum wage, so the Arizona statewide rate applies: $15.15 an hour as of January 1, 2026. If your crews take jobs in Flagstaff ($18.35) or Tucson ($15.45), those cities' higher local rates apply to that work. Industrial Commission of Arizona
• Paid sick time. Employees earn at least one hour for every 30 hours worked. Employers with 15 or more employees must allow up to 40 hours a year, and smaller employers up to 24. A.R.S. § 23-372
• State unemployment tax. For 2026, new Arizona employers pay 2.0% on the first $8,000 of each employee's wages. Established employers receive their own assigned rate. Arizona DES
• Workers' compensation. Arizona employers with workers regularly employed in their business generally must carry coverage, with limited exceptions. A PEO arrangement may include it, so ask when comparing. A.R.S. § 23-902

For the full week-to-week process, see how to do construction payroll, step by step.

Trades we work with

Roofing, electrical, plumbing, HVAC, concrete, framing, drywall, excavation, landscaping, and general contracting companies across the Phoenix metro.

Areas we serve around Phoenix

Phoenix, Scottsdale, Tempe, and the rest of Maricopa County. For the suburbs, see our pages for the East Valley (Mesa, Chandler, Gilbert, Queen Creek) and the West Valley (Glendale, Peoria, Goodyear, Buckeye, Surprise). Elsewhere in Arizona, see Tucson and Flagstaff.

How it works

1. Tell us about your business. Your trade, employee count, and what you need help with. No payroll documents needed to start.
2. We review your options. We coordinate with our provider partners on payroll, PEO, workers' compensation, or benefits options that fit.
3. Get a clear breakdown. Review the proposed services and every cost in writing before you decide.

PayMyCrew is an independent sales and referral business working with provider partners. We don't operate a PEO, underwrite insurance, or issue benefit policies; those come from the providers. More about us.

Phoenix construction payroll questions

Do you work with construction companies in Phoenix?

Yes. We work with contractors across Phoenix and the surrounding Valley, including Mesa, Chandler, Gilbert, Tempe, Scottsdale, Glendale, Peoria, Goodyear, Avondale, Buckeye, Surprise, and Queen Creek. Conversations happen by phone, video, and email, and we reply to quote requests within one business day.

What does construction payroll cost in Phoenix?

For an approved PEO arrangement, the administrative fee is a flat $75 per employee per month. Workers' compensation premiums, employee benefit premiums, wages, and employer payroll taxes are calculated separately and shown in your written proposal. Payroll-only and standalone benefits are priced separately.

Does Phoenix have its own minimum wage?

No. Phoenix follows Arizona's statewide minimum wage, which is $15.15 an hour as of January 1, 2026. Flagstaff and Tucson set their own higher rates, which matters if your crews work jobs in those cities.

Can you help with certified payroll on Phoenix-area public projects?

Certified payroll support is available through some provider arrangements. Federally funded or assisted public work around the Valley can carry Davis-Bacon prevailing wage and weekly certified payroll requirements, and your contract documents say whether they apply. We confirm a provider's certified payroll support in writing before you rely on it.

Can I get payroll or benefits without a PEO?

Yes. Payroll only, standalone employee benefits, and a PEO are each available on their own. None requires the others.

Information checked October 2026.