PEO companies in Arizona: costs, scores and the 2024 rule change
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Arizona has had no PEO registration since HB 2252 (Laws 2024, chapter 67) repealed it (approved April 2, 2024), but PEOs must still post a bond or keep $100,000 in net worth under A.R.S. 23-569. Costs are low on the state side: a new Arizona employer pays 2.00% unemployment tax on the first $8,000, or $1,600 a year for 10 employees, next to $9,480 to $14,880 in Justworks PEO fees (pricing page checked October 16, 2026).
Harbor Compliance's 50-state PEO licensing guide (revised July 8, 2026) still describes Arizona registration as on hold until 2023; that entry is out of date.
A PEO in Arizona is a co-employer that runs payroll, benefits and HR for client businesses; Arizona no longer registers PEOs but keeps a financial assurance rule in A.R.S. 23-569.
On this page
What changed in 2024, and what still protects you
Before 2024, PEOs registered with the Arizona Secretary of State. HB 2252, approved April 2, 2024, ended that. What remains is A.R.S. 23-569: a PEO must have a bond or show at least $100,000 of net worth. There is no public list to search.
Without a state roster, your checks are:
- Ask the PEO for proof of its bond or net worth under 23-569.
- Look the entity up on the IRS active CPEO list (August 7, 2026). A certified PEO posts its own federal bond: the greater of 5% of prior-year employment tax liability, capped at $1,000,000, or $50,000.
- Read the agreement for who pays if a tax deposit is missed.
Our certified PEO list shows the IRS entity names.
Arizona PEO scores, with Questco
Questco is the only PEO in our set whose website, as we read it on October 16, 2026, names Arizona ("across the U.S., from Arizona to Nebraska and beyond"). It scores 20 because it publishes no prices, benefits details or contract terms and has almost no public reviews, but its QUESTCO HR LLC entity is IRS-certified. Justworks (67) and TriNet (50) still lead on published terms.
| PEO | Score | Published price | On IRS CPEO list (Aug 7, 2026) | Arizona coverage |
|---|---|---|---|---|
| 1. Justworks | 67 | $79 to $124 per employee per month | Yes (Justworks Employment Group LLC and 3 related) | Not confirmed: Multi-state stated, no state list |
| 2. TriNet | 50 | Quote only | Yes (TriNet HR III-B, Inc.) | Not confirmed: Multi-state stated, no state list |
| 3. ADP TotalSource | 44 | Quote only | Yes (ADP TotalSource, Inc. and related) | Not confirmed: Multi-state stated, no state list |
| 4. Paychex PEO | 34 | Quote only | Yes (Paychex PEO VI LLC, VII, Oasis HR Solutions III) | Not confirmed: Multi-state stated, no state list |
| 5. Insperity | 33 | Quote only | Yes (Insperity PEO HR, Inc.; Insperity PEO Services, L.P.) | Not confirmed: Not stated |
| 6. BBSI | 26 | Quote only | Not found | Not confirmed: Multi-state support, no state list |
| 7. Amplify HR Management | 23 | Quote only | Yes (Amplify HR Management, LLC) | Not confirmed: Not stated |
| 8. ExtensisHR | 22 | Quote only | Yes (Extensis Inc. and 5 related) | Not confirmed: "Across the country", no state list |
| 9. Engage PEO | 21 | Quote only | Yes (Engage PEO, LLC) | Not confirmed: Not stated |
| 10. PrestigePEO | 20 | Quote only | Yes (3 Prestige entities) | Not confirmed: "National", no state list |
| 11. Questco | 20 | Quote only | Yes (QUESTCO HR LLC) | Named: names Arizona on its site |
| 12. Sequoia One | 17 | Quote only | Yes (Sequoia One PEO, LLC) | Not confirmed: Not stated |
| 13. Rippling PEO | 11 | Quote only | Not found under the Rippling name | Not confirmed: Not stated |
| 14. G&A Partners | 8 | Not verified | Likely match, unconfirmed | Not confirmed: Not verified (site blocked) |
| 15. Vensure | 8 | Quote only | Not found under the Vensure name | Not confirmed: Not stated |
Questco is the only PEO naming Arizona (site read Oct 16, 2026). CPEO: IRS, Aug 7, 2026. Scores: Oct 17, 2026, built as described in our method.
Details: Questco review, Justworks review.
Ten employees in Arizona: the numbers
Arizona's new employer UI cost is $160 per employee, less than Texas ($243) or Florida ($189). Experienced rates range from 0.03% to 8.36%. Assumptions: 10 people at $50,000.
| Cost line | How it is figured | Per year |
|---|---|---|
| Justworks PEO Basic fee | $79 x 10 employees x 12 months | $9,480 |
| Justworks PEO Plus fee | $124 x 10 employees x 12 months | $14,880 |
| Industry admin fee range (estimate) | $40 to $160 x 10 x 12 (ADP guide, July 14, 2026) | $4,800 to $19,200 |
| FUTA | 0.6% net x first $7,000 x 10 | $420 |
| Arizona UI | 2.00% new employer rate x first $8,000 x 10 | $1,600 |
| Justworks fee plus unemployment and state program taxes | Basic or Plus fee + FUTA and Arizona UI ($2,020 together) | $11,500 to $16,900 |
| Employer FICA (owed with or without a PEO) | 7.65% x $50,000 x 10 | $38,250 |
| All-in with Justworks, before health premiums and workers' comp | Line above + employer FICA | $49,750 to $55,150 |
| All-in at the industry fee range | $40 or $160 fee + all taxes above | $45,070 to $59,470 |
Arizona DES rate chart for 2026; Justworks fees as posted on 10/16/2026; the $40 to $160 range is ADP's industry estimate (7/14/2026). Arizona runs no state disability or paid leave payroll program.
With the state lines this small, the PEO fee and health premiums are most of the bill. If Justworks' $79 to $124 range looks high for what you need, compare against a payroll service plus a broker in our PEO vs payroll breakdown, and see PEO fees explained for how quotes are built.
Arizona payroll details a PEO handles
- Withholding elections: employees choose 0.5% to 3.5% of gross wages on Form A-4, in 0.5-point steps. With no A-4 on file, the default is 2.0%.
- Paydays: at least two a month, no more than 16 days apart.
- Final pay: within 7 working days of a discharge or by the end of the next regular pay period, whichever comes first.
- Minimum wage: $15.15 in 2026; tipped cash wage $12.15 with a $3.00 maximum tip credit. A secondary source (FreshPlaza, September 17, 2026) reports $15.65 from January 1, 2027.
- Workers' comp: required for any employer that regularly employs workers in its usual business, whatever the number, counting part-time staff and minors.
More on DES registration in our Arizona payroll tax guide.
Setup problems Arizona buyers should plan for
The first 90 days are when most PEO problems start. A TriNet HR director on Capterra (October 2, 2026) wrote "We were not set up correctly in many ways," and fixing it took most of a year. A TrustRadius reviewer (August 17, 2026) said their implementation "did not go well." A Justworks customer on Trustpilot (August 28, 2026) said they could not get paid after about 16 days.
Ask for a written onboarding plan with dates, and run one parallel payroll before you switch.
Questions for an Arizona PEO
- Can you show your A.R.S. 23-569 bond or net worth statement?
- Which of your entities is IRS-certified, and is it the one on our contract?
- How do you collect and store each employee's A-4 election?
- Who runs our first payroll, and can we run one in parallel?
- Do you serve Arizona from a local office, and what are support hours in Arizona time?
- What are the exit notice and fees?
See all 15 PEO scores for the national picture.
Frequently asked questions
Does Arizona require PEO registration?
How much does a PEO cost in Arizona?
Which PEOs serve Arizona?
What is the Arizona minimum wage in 2026?
How is Arizona income tax withheld under a PEO?
Sources (15)
- Justworks: Justworks pricing (PEO Basic and PEO Plus) (checked Oct 16, 2026)
- TriNet: TriNet PEO pricing (checked Oct 16, 2026)
- ADP: What is the cost of a PEO (updated July 14, 2026) (checked Oct 16, 2026)
- IRS: Active certified PEO list (report date Aug 7, 2026) (checked Oct 16, 2026)
- Arizona Legislature: Laws 2024, chapter 67 (HB 2252) (checked Oct 16, 2026)
- Arizona DES: UI tax rates (checked Oct 16, 2026)
- Arizona DES: Applying for a UI tax account number (checked Oct 16, 2026)
- Industrial Commission of Arizona: Workers' compensation claims FAQ (checked Oct 16, 2026)
- Arizona Legislature: A.R.S. 23-353 (final pay) (checked Oct 16, 2026)
- US Department of Labor: Minimum wages for tipped employees (checked Oct 16, 2026)
- Questco: Questco home page (checked Oct 16, 2026)
- IRS: Certified professional employer organization (checked Oct 16, 2026)
- Capterra: TriNet reviews, page 2 (checked Oct 2026)
- TrustRadius: TriNet reviews (checked Oct 2026)
- Trustpilot: Justworks reviews (2.1 from 37 reviews) (seen Oct 16, 2026)
This page is general information, not tax, legal or accounting advice. Rules and rates change, so check the official source linked above before you file or sign a contract. Read our disclaimer.