Construction Payroll Services in Tucson

$75 per employee, per month. That's the flat PEO administrative fee for approved Tucson 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 for Tucson and Pima County contractors

Tucson contractors rarely keep a crew inside one set of city limits. A week might include a remodel in midtown Tucson, a new build in Marana, and a commercial job in Oro Valley or Sahuarita. That matters for payroll, because Tucson sets its own minimum wage for work done inside the city, and the towns around it follow the lower state rate.

Your payroll setup should keep that straight without a spreadsheet on the side:

• Weekly and biweekly payroll processing, with payroll tax administration
• Overtime and multiple pay rates for the same employee
• Time tracking by jobsite, so hours inside Tucson city limits can be identified
• Job-cost reporting, depending on provider and arrangement
• Workers' compensation payroll reporting by classification
• Certified payroll support where available

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

Tucson's minimum wage and your crews

Tucson's minimum wage is $15.45 an hour as of January 1, 2026, compared with the $15.15 statewide rate. It generally covers work performed inside Tucson city limits, no matter where your business is based, and it adjusts each January. Most skilled trades already pay well above either rate, but it can matter for entry-level laborers and helpers, and for any employee whose hours split between jobs inside and outside the city. Check the City of Tucson for the current rate and coverage rules.

Prevailing wage and certified payroll on Tucson public work

Tucson adopted a prevailing wage ordinance for city construction contracts of $2 million or more. 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 Phoenix and Tucson from requiring prevailing wages on city construction contracts (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. Federal Davis-Bacon requirements are separate and still apply to covered federally funded or assisted work. Check for later developments before you bid.

Davis-Bacon can come up around Tucson on federal construction, such as work at Davis-Monthan Air Force Base, and on road, transit, or other projects that use federal money. It often flows down to subcontractors, and your contract documents say whether it applies. Learn what certified payroll is and what to ask a provider.

Three ways to set up payroll for your Tucson 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.

Payroll basics for Tucson employers

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

• Minimum wage. $15.45 an hour inside Tucson city limits and $15.15 statewide, as of January 1, 2026. Outside the city, including Marana, Oro Valley, and Sahuarita, the state rate applies unless a town sets its own. 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 Tucson and Pima County.

Areas we serve

Tucson, Marana, Oro Valley, Sahuarita, Vail, Green Valley, and the rest of Pima County. Elsewhere in Arizona, see our pages for Phoenix, the East Valley, the West Valley, 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.

Tucson construction payroll questions

Do you work with construction companies in Tucson?

Yes. We work with contractors across Tucson and Pima County, including Marana, Oro Valley, Sahuarita, Vail, and Green Valley. Conversations happen by phone, video, and email, and we reply to quote requests within one business day.

What is Tucson's minimum wage in 2026?

$15.45 an hour as of January 1, 2026, for work performed inside Tucson city limits. The Arizona statewide rate is $15.15. Both adjust each January.

Do Tucson city construction contracts require prevailing wage?

In February 2026, the Arizona Court of Appeals, Division One, held that state law bars Tucson and Phoenix from requiring prevailing wages on city construction contracts. Federal Davis-Bacon requirements still apply to covered federally funded or assisted work. Check for later developments before you bid.

What does construction payroll cost in Tucson?

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.

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.