Easily manage employment in Wyoming

Payroll management in Wyoming

Wyoming has a strong economy supported by industries such as energy, agriculture, tourism, and manufacturing. With state-specific payroll regulations, including no state income tax, a minimum wage that aligns with the federal rate, and right-to-work laws, employers in Wyoming must ensure compliance with both state and federal payroll laws. Understanding these regulations is crucial for smooth payroll operations and compliance.

Payroll breakdown in Wyoming

Employers in Wyoming must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:

Minimum wage and overtime

• Minimum wage: Wyoming’s state minimum wage is $5.15 per hour, but since it is lower than the federal minimum wage, employers must comply with the federal minimum wage of $7.25 per hour.
• Overtime rules:
• Wyoming follows federal overtime laws, requiring employers to pay 1.5 times an employee’s regular rate for hours worked beyond 40 hours in a workweek.
• Some exemptions apply based on job classification and industry.

State income tax

• Wyoming does not impose a state income tax on wages, meaning employers are only responsible for federal income tax withholding.
• However, businesses may be subject to other taxes, such as the Wyoming Business Franchise Tax depending on business activities.

Unemployment insurance (UI) tax

• Employers must contribute to Wyoming’s Unemployment Insurance (UI) program, managed by the Wyoming Department of Workforce Services (DWS).
• The UI wage base in Wyoming is $30,500.
• UI tax rates vary based on an employer’s experience rating and range from 0.48% to 9.78%.
• New employers typically pay a 2.36% UI tax rate.

Workers’ compensation

• Wyoming law requires all employers with one or more employees to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
• Wyoming is a monopolistic state, meaning workers' compensation coverage must be obtained through the Wyoming Department of Workforce Services (DWS) rather than private insurers.

Payroll tax filing and payment deadlines

• Employers must register for a Wyoming Employer Tax Account with the Wyoming Department of Workforce Services (DWS).
• State unemployment tax reports must be submitted quarterly to the Wyoming Department of Workforce Services.
• Payroll tax payments can be made electronically through the Wyoming Unemployment Insurance Online System.

Quick facts: Important considerations for employers

• State minimum wage compliance: Wyoming’s state minimum wage is $5.15 per hour, but since the federal minimum wage is higher ($7.25 per hour), most employers must comply with federal law.
• Final paycheck rules:
• If an employee is terminated, employers must provide the final paycheck within five business days.
• If an employee resigns, the final paycheck must be provided by the next scheduled payday.
• New hire reporting: Employers must report new hires to the Wyoming New Hire Reporting Center within 20 days.
• Paid sick leave: Wyoming does not require employers to provide paid sick leave, but employers may choose to offer it as a benefit.
• Payroll recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
• Right-to-work state: Wyoming is a right-to-work state, meaning employees cannot be required to join a union as a condition of employment.

Run payroll in Wyoming with Remote

Managing payroll in Wyoming requires careful attention to state-specific regulations, including minimum wage compliance, UI tax requirements, and workers’ compensation laws. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be, book a demo with Remote today.