A Complete Guide to Wyoming Payroll Taxes

When it comes to running Payroll in the United States, Wyoming is considered one of the most accessible states to practice the same.

The primary reason that adds up to the ease is no state income tax, and this is why the calculations of Wyoming Payroll taxes are quick and straightforward.

But as simple it seems, the more considerate you need to be while running the Payroll in Wyoming. You are bound to consider the federal and state HR Laws such that you can run your Payroll easier and calculate and file the payroll taxes with accuracy.

In this article, we will take you through the complete guide to doing Payroll in Wyoming that covers the following:

What are Wyoming Taxes and Regulations?

If you are practicing Payroll in Wyoming, you will be required to calculate the Wyoming payroll taxes and ensure that they comply with the federal and state employment laws.

Wyoming Taxes

Under Wyoming Taxes, the state has the advantage of having no state income tax, unlike the other states where the companies need to pay certain taxes. In addition, Wyoming doesn't levy local taxes on employees. As a result, you will not be required to withhold taxes from employee paychecks.

Employer Unemployment Taxes

Wyoming doesn't have a state income tax or local taxes. But all the employers in Wyoming are obligated to pay State Unemployment Tax Act (SUTA) taxes.

As per the current scenario, the base is $27300, and rates range from point 0.48% to 9.78%.

Every new business established in Wyoming must submit the documentation to calculate its rate based on the industry type. If any of the companies fail to complete these forms, then they will be given a rate of 8.5%

One major advantage of paying SUTA taxes on time is that businesses can get tax credit claims up to 5.4%, reflecting on their Federal Unemployment Tax Act (FUTA) taxes.

In order to maintain the compliance with payroll taxes and due filing, the following are Wyoming's regulations that need to be considered by the employer:

Wyoming's Regulations

1. Workers compensation

In Wyoming,

Every employer with one or more employees needs to carry workers' compensation insurance.
The compensation insurance should provide benefits to employees who are suffering from on-the-job injuries and cover the cost of medical treatment.
The employers are required to pay this out of the business bank account.
In order to cover the workers' compensation, the employers cannot use the funds from employee paychecks.

2. Minimum Wage & Overtime

The federal minimum wage in Wyoming is $7.25 per hour.
For employees, the minimum wage that companies need to pay is $ 2.15 per hour, providing the tips given to them
For minors and interns, the pay is allowed to be less
All employers must pay the employees 1.5 times the regular hourly wage for hours when talking about overtime.

3. Employee payment

Wyoming law requires the employers to pay their employees twice a month for the categories like Railroad, Mill, Factory, Refinery, Workshop, Oil, Gas, and Mine.
If the employees are working under any of the categories, then the employers are entitled to pay from the 1st to the 15th of the month by the first day of the following month.
And the work is done between the 16th and the last day of the month by the 15th day of the following month.
The employers can pay the workers in cash, paper check, and Direct deposits.
In some cases, the employee can be paid through a payroll card, considering you get the authorization from the employee in writing.

4. Pay Stub Laws

The employees are entitled to receive a pay stub with every paycheck. The pay stub will reflect all the deductions made from the employees' wages and can be in the form of a paper or electronic.

5. Paycheck deductions

As an employer, you can deduct wages from the employees' paycheck, considering the deduction meets the specific reasons as shared below:

Cash shortage
Required tools and uniforms
Broken, damaged, or destroyed companies' property
Any other necessary items needed for employment

6. Termination of employees' Final Paychecks

If any employee quits, resigns, or gets discharged or fired by the company, then the employers must pay them before the next regular payday.

In Wyoming, you are not required to address the handling of final paycheck or employees who are suspended or resigned due to any disputes.

Therefore, it is best to pay them before the regular payday; otherwise, the paycheck will get non-addressed.

What are the Wyoming HR Laws that affect Payroll?

Wyoming has few state-specific HR Laws that need to be considered by every employer.

Seeking familiarity with these laws can help you understand the structure and follow the guidelines well.

Following are the Wyoming HR Laws:

1. New Hire reporting

If the employers are looking forward to recruiting and hiring new or rehired employees, they must report to the Wyoming New Hire Reporting Center within 20 days of the hire date.
The information should include the employee's name, address, social security number, and the enforcement of child support orders.

2. In between Meals and Breaks

Wyoming doesn't support any law requiring that employers should provide workers with meals and breaks.
It is not an obligation for employers to give workers a break. But if they do, then the breaks that last long for less than 20 minutes should be paid for. Otherwise, the breaks or mealtime over 30 minutes should not be paid for.

3. Child labor laws

Wyoming does not restrict the working hours of children as specified under different category groups.
Children aged 16 to 17 are entitled to be given at least one break, considering their working for more than four and a half consecutive hours.
For minors aged 14 to 15, they are allowed to work up to 3 hours on school days, and if the school is not in session, they can work up to 8 hours per day and a total of40 hours per week.

4. Time off and leave requirements

The time off and leave requirements in Wyoming can be categorized under different types of leaves that an employer must comply to:

The types of leaves can be discussed below

Wyoming Family Leave

The employees are entitled to 12 weeks of unpaid leave who fall under the covered disability, including pregnancy or taking care of a sick family member

Paid Time Off

Wyoming does not require companies to give employees the vacation or pay time-off benefits

Paid sick leave

Wyoming does not mandate paid sick leave for the employees. If the company creates a policy, then it should adhere to that

Holiday Leave

In Wyoming, private companies are not required to pay employees for their holidays

Voting Leave

Employees should be provided up to 1 hour of PTO to vote when the polls are open. The employees can also provide a one day notice of their voting leave request

Bereavement Leave

In Wyoming, the employees are not entitled to bereavement leave

Jury Duty Leave

In Wyoming, no law supports jury duty payment to the employees.

These were Wyoming's HR laws that one needs to know for the payroll process.

The authentic and viable resources related to Wyoming Payroll Taxes can be found in the following:

Wyoming Department of Workforce Services
Wyoming Department of Revenue
Wyoming Department of Workforce Services offers the support and resources to assist the business and ensure compliance with the unemployment and workers' compensation and labor laws.

The Wyoming Department of Revenue provides a list of forms and information on the latest laws, regulations, and employee-specific information.

A step-by-step guide to running Payroll in Wyoming

Running Payroll in Wyoming is quite a basic and routine task. By following the steps, you will be in the position to file and run your Payroll accurately with ease.

Following is the detailed step-by-step guide to running Payroll in Wyoming:

Set up business as an employer
Register business with the state of Wyoming
Create payroll process
Make the relevant forms filled by employees
Calculate employee gross pay and Taxes
Pay the employee wages, benefits, and Taxes
Save the payroll records
File the payroll taxes with the Federal and state government

Set up business as an employer

Companies need to access the Electronic Federal Tax Payment System (EFTPS) to create the new Federal Employer Identification Number (FEIN)
The FEIN is required to pay Federal taxes.

2. Register business with the state of Wyoming

Every new business should register itself on the Wyoming Secretary of State's website.
If the business recruits and pays employees, they must register with the Wyoming Department of Revenue.

3. Create payroll process

In Wyoming, every business needs to create its payroll process from scratch, and that's why it is important to decide how you will pay your employees.
The businesses are provided with multiple options like processing payroll by hand, setting up Excel payroll, or signing up for payroll services that they can choose from

4. Make the relevant forms filled by employees

Every business is required to get the relevant forms filled by their employees during the onboarding process
The appropriate forms include W-4 and direct deposit authorization form

5. Calculate employee gross pay and Taxes

Before calculating the gross pay and Taxes, the employers are requested to collect the employees' timesheets before the due day of Payroll.
You can track the employee time and calculate Payroll based on the total work delivered by the employee.

6. Pay the employee wages, benefits, and Taxes

You can directly pay your employees through direct deposit or by paper checks.
If you opt-in for any service provider for your Payroll, it can help you make deductions automatic and straightforward.

7. Save the payroll records

In Wyoming, the businesses are required to keep a record of all the hours worked and paid to each employee for at least two years.
The details also include their name, address, and date of birth.

8. File the payroll taxes with the Federal and state government

After you are done with all the steps, the final step is to file the payroll taxes online at the Wyoming Internet Filing System for Business website.
You can either monthly where you need to deposit the employment taxes on payments made during the calendar year by the 15th of the following month.
Or semi-weekly, where you need a deposit of the employment taxes for payment made on Wednesday, Thursday, and Friday, then by the succeeding Wednesday
For payments made on Saturday, Sunday, Monday, and Tuesday, then by the following Friday.

The above mentioned eight steps summarize the process of filing payroll taxes in Wyoming.

Bottom Line

In the US, Wyoming does not have a state income tax, and hence it is supported by a few regulatory state-specific HR laws. Though running payroll is easy, it is recommended to calculate the company's Payroll by prescribed process and method to avoid costly errors.

Suppose you are looking forward to running Payroll and staying compliant with the payroll taxes for Wyoming. In that case, you can try out Deskera people who can help automate the Payroll, set payroll methods, and assist in tax calculations.

Key Takeaways

This article wraps the entire process of running the payroll taxes in Wyoming.

It also covers in-depth insights related to Wyoming's payroll laws, taxes, and regulations that need to be fulfilled by the employer.

By following the step-by-step guide, you can file the Wyoming payroll taxes accurately and consider relevant HR laws.

Following are the key takeaways of the article:

Wyoming state has the advantage of having no state income tax, unlike the other states where the companies need to pay certain taxes.
There are certain Wyoming Taxes and regulations that need to be complied with by the employer.
The Wyoming regulations include workers' compensation, minimum wage, overtime, employee payment, pay stub laws, paycheck deductions, and termination of employees' final Paychecks.
Seeking familiarity with Wyoming State-specific HR laws can help you understand the structure and follow the guidelines well.
The list of laws that affects Payroll include new hire reporting, meals and breaks, child labor laws, and time off and leave requirements
You can find resources related to Wyoming payroll tax at the Wyoming Department of Workforce Services and the Wyoming Department of Revenue.
The detailed and step-by-step guide to running Payroll in Wyoming is as follows.
Set up business as an employer
Register business with the state of Wyoming
Create payroll process
Make the relevant forms filled by employees
Calculate employee gross pay and Taxes
Pay the employee wages, benefits, and Taxes
Save the payroll records
File the payroll taxes with the Federal and state government
Though running payroll is easy, it is recommended to calculate the company's Payroll by prescribed process and method to avoid costly errors