PEO and Payroll Pricing for Arizona Contractors

$75 per employee, per month. The flat PEO administrative fee for approved Arizona construction employers. It doesn't include premiums for workers' compensation or employee benefits, the payroll itself, or employer payroll taxes.

The PEO administrative fee

The administrative fee is what the PEO charges to run your payroll and provide the employer services that come with the arrangement. Through PayMyCrew, it's a flat $75 per employee, per month for every approved company:

• The same rate per employee whether you have a small crew or a large one
• No tiers by company size, trade, or payroll amount
• Published here, so you know it before you ever talk to anyone

Outside Arizona? We work with a national PEO provider for contractors in other states. Its pricing is quoted for your state and crew and may differ from the $75 Arizona rate; you'll see it in writing before you decide.

For comparison, People Managing People puts the average PEO cost at about $100–$120 per employee per month (updated September 21, 2026). Use the savings calculator to compare with the average or with what you pay now.

What a PEO arrangement typically includes

Services vary by provider, and your written proposal lists exactly what's included. A PEO arrangement typically covers:

• Payroll and payroll taxes: weekly or biweekly processing, direct deposit, federal and state payroll tax filings, and year-end W-2s
• Workers' compensation coverage: typically under the PEO's policy, with less paperwork than carrying your own (the premium is billed separately)
• Employee benefits access: group health, dental, vision, HSA/FSA, and retirement plans, plus enrollment and administration
• HR support: advisors for hiring, discipline, and terminations, an employee handbook, and written policies
• Compliance: updates on federal, state, and local employment law, I-9 support, and unemployment claims handled correctly
• Jobsite safety program: training library, SDS library, signage, inspection forms, and incident reporting
• Time and job costing: GPS-verified clock-ins, labor cost by job, and an employee self-service portal

What's billed separately

These are real costs of having employees, and they're calculated separately from the $75 fee. Your proposal lists each one before you agree to anything.

Approval requirements

A PEO takes on shared employer responsibilities, so the provider reviews each business before offering an arrangement. Approval isn't automatic. The provider tells you what it needs to prepare a proposal, which can include:

• Your trades and the kind of work your crews do
• Payroll by job classification and number of employees
• Workers' compensation claims history
• Where your crews work

You don't need any of this to start. The first conversation is just about your business. If a PEO isn't offered or isn't the right fit, payroll-only services and standalone benefits are still on the table.

How payroll-only pricing differs

Payroll only is a different service with a different price. A provider runs payroll and payroll tax filings, and you stay the only employer. That means:

• It's priced separately, not at the $75 PEO rate. Pricing depends on your pay schedule, crew size, and the features you choose, and it's quoted in writing.
• You keep your own workers' comp policy and handle it yourself.
• Benefits aren't included. You can add them separately if you want them.
• HR support is usually limited or extra. Ask which features are included and which cost more.

Benefits on their own are priced by plan: the premiums plus whatever share you choose to pay. Compare payroll only, PEO, and benefits.

Fees to confirm in writing

Whichever option you choose, ask for a written breakdown that covers:

• Setup or onboarding charges
• Charges for extra or off-cycle payroll runs
• Year-end forms and certified payroll reports
• How employees are counted for the per-employee fee
• Contract term and what it takes to cancel

For more questions to ask, see our guide to choosing a construction payroll service.

Who sets the price

PayMyCrew is an independent referral service. We don't process payroll, operate a PEO, or issue insurance. Provider partners deliver those services and set their pricing, including the $75 PEO administrative fee, in their written proposals. The quote and our help are free to you; if you become a provider's client, PayMyCrew is typically paid by that provider. More about us.

Pricing questions

What does the $75 per employee per month cover?

It's the administrative fee for an approved PEO arrangement: the provider's charge for running payroll and the employer services that come with the PEO. It's the same $75 per employee, per month for every approved Arizona company, with no tiers by company size or payroll amount. Outside Arizona, our national provider quotes its own pricing for your state.

What isn't included in the $75 fee?

The payroll itself (your employees' wages), employer payroll taxes, workers' compensation premiums, and employee benefit premiums. Those are calculated separately and listed in your written proposal before you agree to anything.

Does the PEO include workers' compensation?

A PEO arrangement typically includes workers' compensation coverage under the provider's policy, so you don't have to carry and manage your own. The coverage is part of the arrangement; the premium for it is billed separately from the $75 administrative fee.

Is every business approved?

No. The provider reviews each business before offering a PEO arrangement. If a PEO isn't offered or isn't the right fit, payroll-only services and standalone employee benefits are still options.

How much does payroll only cost?

Payroll-only services are priced separately from the PEO fee and depend on your pay schedule, crew size, and the features you choose. You'll see the price in writing before you decide.

Does it cost anything to get a quote?

No. The introductory call and the written proposal are free, with no obligation to switch. If you become a client of a provider partner, PayMyCrew is typically paid by that provider, not by you.

Information checked October 2026.