What is an Arizona Employer of Record?

Arizona is an attractive business destination offering reduced tax rates and investment-friendly policies. If you want to expand your business by hiring employees in the state, you would need to set up a local entity. Fortunately, an Employer of Record, or EOR, allows you to recruit job candidates and legally establish a global workforce without establishing an entity. 

An Arizona EOR is a third-party HR provider specializing in international and tailored employment solutions. An EOR helps businesses hire locally and globally by ensuring compliance with labor laws. When you partner with an EOR in Arizona, they will connect you to the top talent in the state to help you hire a skilled workforce. Furthermore, they will manage essential processes such as payroll, benefits administration, and taxes. Because the Arizona EOR serves as a legal employer, they assist with hiring and drafting employment contracts for permanent and contract workers as per Arizona’s labor regulations. 

For businesses interested in tapping into Arizona’s growing population and industries, relying on the services of an EOR will help you save on the costs of hiring and mitigate the risks of non-compliance. In Arizona, hiring employees and establishing your business can be challenging due to complex labor laws. State and federal laws regulate Arizona’s employment processes, including the Fair Labor Standards Act (FLSA). An Arizona EOR will guide you through the legal steps and protect your business from penalties. 

More global companies invest in Arizona because of its structured regulations, high-quality infrastructure, and tax incentives. The state offers a healthy economy with a good standard of living, attracting skilled workers from all over the world. Arizona’s investment industries include manufacturing, agriculture, transportation, aerospace, and healthcare. To help you decide whether an Arizona EOR is right for your global business goals, this guide explores what an EOR does and how it assists with expansion in the state. 

Arizona EOR
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What Is the Difference Between an Arizona EOR and an Arizona PEO?

Both an EOR and a Professional Employer Organization assist foreign businesses in hiring and establishing a labor force as per local employment regulations. However, there is a difference between an EOR and a PEO in terms of their scope of services and legal standing in Arizona. Understanding the types of services each agency offers can help you choose the best one. 

Full legal employment vs. co-employment in the state of Arizona

An Arizona EOR provides legal employment, which allows them to perform formal tasks such as calculating and deducting tax, paying employee salaries, registering workers for social security, and assisting with employment contract negotiations.

An Arizona PEO serves as a co-employer and helps client companies by streamlining HR, managing compliance, and offering affordable benefits packages for employees in partnership with insurance companies.

Benefits of a PEO Versus an EOR

A PEO in Arizona will streamline administrative tasks. As co-employers, they handle payroll and benefits while offering employees affordable and valuable benefits plans and packages. You remain in control of employee performance, including company decision-making and employee onboarding and offboarding, while the PEO registers workers for their tax identification number (EIN) and takes over specific HR tasks.

When you hire an EOR in Arizona, they are considered the legal employer. This allows the Arizona EOR to take over processes such as registering employees for tax, calculating tax deductions, paying salaries and benefits, overseeing employment contracts, onboarding, and dismissing employees. The role of the client company is to train employees and manage daily performance. Both an EOR and PEO in Arizona will support compliance with local labor laws.

PEO and EOR Registration in Arizona

Both a PEO and EOR must be registered with the Arizona Secretary of State to ensure they are compliant with state and federal law. These entities do not require special licenses or certifications to operate but must deliver services under Arizona labor laws and regulations to protect the rights and interests of clients and employees. 

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How Does a Arizona Employer of Record Work?

To maximize results when hiring an Arizona EOR, it is important to understand how such services work. 

Tasks handled by an EOR 

An Arizona EOR is responsible for handling payroll, taxes, and benefits administration based on state and federal labor laws. The EOR will help draft the employment contract, onboard employees, manage workplace disputes, and initiate dismissals on a legal basis. 

Employee onboarding 

In Arizona, employee onboarding under an EOR starts with collecting personal information to register employees with the local authorities. The minimum onboarding time is two days. However, non-US citizens require additional onboarding time for an eligibility assessment. 

Best 5 Employers of Record in Arizona

To find the most reliable EOR for your business needs, a closer look at the best 5 EORs in Arizona can help you make an informed decision. 

1

Horizons

Horizons is a global employment specialist founded in 2018. The agency provides services such as partnering with an EOR, managing contractors, and international recruitment. 

Horizons Employer of Record (EOR)

Core Features

Horizons manages payroll, tax compliance, and employee benefits while ensuring your business stays in line with local labor laws. They also assist with drafting tailored employment contracts and onboarding new hires, ensuring a smooth experience for both employers and employees.

Pricing Model

Horizons provides a transparent pricing model based on a monthly fee per employee. There are different monthly fees from $299 based on the service, such as hiring an EOR or onboarding and paying contractors. You can include optional EOR add-ons, which are charged per service, such as background checks and managing bonuses. 

Pros and Cons

  • Pros

Makes it easy to expand your business in Arizona with detailed packages designed for EOR, recruitment, contractor management, and other international employment services.

Easy to navigate website

Earned numerous awards for simplifying business. Horizon is a high performer in the mid-market in 2024.

Allows you to book a demo before committing to their service packages.

Offers one-on-one support.

  • Cons

Limited range of services and does not specify which industries or job roles it recruits in. 

Verdict

Horizons is an excellent option for businesses interested in global recruitment and expansion efficiently and cost-effectively. The company describes its services in detail, making it easier for businesses to understand their options, from hiring an EOR to managing payroll on an international scale. 

2

Remote

Remote is an international recruitment agency assisting companies with hiring the most talented employees in different industries and positions.

Remote homepage

Core Features

The agency offers pre-vetted candidates based on job roles on an international scale. Services include recruiting global talent, executive job placement, recruitment process outsourcing, and connecting you to an EOR broker. Furthermore, Remote offers a recruitment methodology and various HR and finance tools on its website. 

Pricing Model

Pricing for international recruitment is from $900 based on the range of services included in the package. Recruitment for executives is based on 25% of the employee’s annual salary. 

Pros and Cons

  • Pros

Remote specifies the industries it recruits for and offers an executive search.

The company has a transparent pricing model.

Provides helpful tools on the website, such as an invoice generator and global salary calculator.

Signing up with Remote gives access to a partner program, allowing companies to leverage recruitment expertise and efficient, legal hiring solutions on an international scale.

The agency offers dedicated and professional support.

  • Cons

The costs of international hiring are high for large workforces.

Verdict

Remote People simplifies global expansion and recruitment with specific hiring and EOR services. The company offers a special executive global job search and describes the industries it specializes in. The company has years of experience and an expert team in international recruitment. This makes Remote People a reliable choice for global employment. 

3

Deel

Deel is a global platform assisting international employers with payments, legal compliance, and tax regulations.

Deel homepage

Core Features

Founded in 2019, the agency simplifies international outsourcing for employers who want to hire permanent staff or contractors. Deel works by hiring remote employees through its own registered entity on behalf of clients and helps draft employment contracts. 

Pricing Model

Deel’s pricing model is difficult to understand as the company does not provide a clear breakdown of its fees. It is important to read the fine print to avoid being surprised by hidden charges. 

Pros and Cons

  • Pros

Deel is a well-known service provider in international employment and business expansion.

The company offers 24/7 support.

Deel has a user-friendly website.

International employees can benefit from professional assistance with their visa applications.

  • Cons

Deel doesn’t offer a transparent pricing system.

The company uses a one-size-fits-all approach for clients.

Client companies may struggle with specialized support and expertise when dealing with termination cases.

Verdict

While Deel remains a popular international service provider in recruitment and expansion, it falls short in terms of transparency and may not support all international currencies. 

4

Papaya Global

Papaya Global is a SaaS company specializing in the management of workforce payments and processing payroll on an international scale.

Papaya Global homepage

Core Features

The company makes it easier to process international payments in more than 130 currencies and provides EOR services for global hiring. 

Pricing Model

Papaya requires requesting a quotation for accurate pricing; however, the platform includes rates from $5 per month per employee for standard services such as running global payroll from one SaaS platform. 

Pros and Cons

  • Pros

Consists of a professional payroll team.

Includes a cross-border payment platform and tailored BPO financial services.

Regulated in Tier-1 jurisdictions internationally.

Papaya Global includes EOR services and contractor solutions and delivers payroll across all industries.

Guarantees transparent fees and FX rates.

  • Cons

Some businesses feel the costs are too high, and it has very limited HR services.

Its EOR and PEO systems are complex to understand.

Verdict

In conclusion, Papaya Global provides fair payroll solutions based on the specific needs of international client companies in multiple currencies. 

5

Globalization Partners

Globalization Partners (G-P), founded in 2012, is a leading provider of Employer of Record (EOR) services designed to help businesses expand with ease.

Globalization Partners homepage

Core Features

Globalization Partners helps companies from across the world expand internationally. They are a global EOR and provide services for hiring contractors. The company performs background checks on job candidates, manages immigration visas, oversees employment contracts, and onboards employees. 

Pricing Model

The platform does not offer clear pricing models for its services but includes a 15% additional charge on employee salaries. 

Pros and Cons

  • Pros

Globalization Partners has years of experience as an EOR and provides international guidance for HR, financial, and legal teams.

Round-the-clock customer support is available

G-P makes it easier to manage global payroll and tax.

  • Cons

Despite Globalization Partners offering a custom suite of global employment solutions, it can be difficult to navigate and understand.

The wide range of services listed on the website for employers and global teams can be confusing. 

Verdict

Globalization Partners has established itself as a competitive international employment solutions and services provider. It delivers a range of services such as EOR, payroll, and professional support for global teams and compliance management. The wide range of services can be difficult to understand, and clients must carefully assess flat rates and extra fees. 

What Labor Laws Apply to Hiring in Arizona?

To successfully hire employees in Arizona, employers must be familiar with the following labor laws: 

Minimum wage

Arizona’s minimum wage is $14.70 per hour as of 2025.

Overtime

Overtime is regulated by the FLSA, and employees are paid one and a half times their standard rate for work outside of a 40-hour week. 

Social Security

Employees contribute 6.2% toward social security (FICA) and employers 6.2%. Employees contribute 1.45% of gross salaries to FICA medical care.

Industry regulations

All businesses in Arizona must register for transaction privilege tax (TPT) with the Arizona Department of Revenue (ADOR). Industries regulated by the state require special operational licenses.

Worker protection and at-will employment

Employees are protected by the Arizona Occupational Safety and Health Act, in which employees have the right to a safe working environment. 

In Arizona, at-will employment allows the employer to dismiss the employee at any point and for any reason in the employment relationship, and employees can leave when they please. 

What Are the Benefits of a Arizona EOR?

Hiring an Arizona EOR provides efficient market entry in a fast-growing region. The EOR will help you hire employees and establish your labor force in a matter of days and without the time and cost of setting up a legal entity. The Arizona EOR can mitigate legal and HR complexities to protect your business from penalties. 

What are the Downsides of a Arizona EOR?

When relying on an Arizona EOR, many client companies feel they have less hands-on control over HR tasks as the agency streamlines these processes. When hiring large teams, the costs per employee can become extensive. 

How to Choose a Arizona EOR

Choosing an EOR is an important decision that can make or break your efforts at international expansion. When partnering with an Arizona Employer of Record, always weigh cost structure and look for value and transparency. There shouldn’t be hidden fees, and the agency must have local knowledge of labor laws on a state and federal level. An Arizona EOR should provide technology tools to help you perform payroll and relevant calculations. In addition to expertise and access to compliance tools and calculators, the EOR must have a service-level guarantee. Lastly, check references and former client testimonials to assess the quality of services provided by the agency. 

Engage an Arizona Employer of Record

Partnering with an Arizona EOR will streamline HR, maintain compliance with state and federal labor regulations, and help you expand your business efficiently and reliably. As Arizona has complex employment laws and requirements, an expert EOR can guide you through these practices and processes, protecting your business and the rights of employees.

Engage Remote People as an EOR Broker

To get started, you can engage Remote People as an Arizona EOR Broker. Remote People helps client companies with foreign expansion and recruitment by connecting to exceptional talent and EOR services. Their goal is to guide you on tailored business solutions for your present and future professional success.

To get the best deal on your Arizona EOR service, consider the Remote People EOR broker service, through which can find you the best price for your Arizona hiring.