Employer’s Guide to Wyoming State Taxes: SUI, Income Tax, and More

Employers must navigate different regulations to ensure proper payroll withholding in each US state. This guide introduces payroll requirements in Wyoming, including unemployment insurance, personal income tax, and workers' compensation.

Wyoming state income tax

In contrast to many other states, Wyoming does not impose a personal income tax. This means that after hiring your first employee in the state, you are not required to withhold any personal income tax from their wages. This favorable tax environment simplifies payroll processing and reduces the administrative burden for employers.

Unemployment insurance in Wyoming

Apart from federal taxes like Medicare and Social Security, Wyoming employers must also withhold and pay employer payroll taxes. One of these taxes is unemployment insurance, which provides temporary payments to individuals who are unemployed due to circumstances beyond their control.

Wyoming's UI program is managed by the US Department of Labor, and as an employer, you are responsible for contributing to this program.

The SUI tax rates are assigned based on the employer's experience and the industry type. Here’s how the rates are structured:

• Experienced employers: Those with at least three years of experience have their base rate calculated based on their specific benefit ratio, which is then adjusted by three additional rate factors
• New employers: Employers with less than three years of experience are assigned a base rate according to their industry type, plus three additional rate factors
• Default rate: Employers who fail to complete their registration before submitting their report are assigned the highest base rate of 8.5%

The following table summarizes the SUI tax rate components:

You can manage your Wyoming unemployment insurance obligations through the online portal. For detailed instructions, head over to the Wyoming Department of Workforce Services website.

Paying workers' compensation

While addressing your Wyoming payroll taxes, it's also important to factor in workers' compensation insurance. This insurance covers employee injuries sustained while performing job-related tasks. Wyoming mandates workers' compensation coverage even if you have just one employee in the state.

Unlike most other states, you can receive workers’ compensation coverage by using Wyoming’s online portal.

For more information on workers’ compensation in Wyoming, the state’s Department of Workforce Services provides this documentation.

Wyoming payroll tax due dates

Wyoming’s payroll tax due dates are scheduled quarterly. It’s important for businesses to adhere to these deadlines to avoid penalties. The due dates are as follows:

If a due date falls on a weekend or holiday, the next business day becomes the effective due date.

Submission process for payroll taxes in Wyoming

Employers in Wyoming must follow a specific process to submit their payroll taxes. This involves registering as a Payroll Service on the WYUI site.

Once approved, employers can upload the ICESA file through their Payroll Service Account. It’s important to note that Wyoming only offers ACH debit for payments, and these must be made concurrently with the file upload.

Company registration considerations

Deciding whether to register your company in Wyoming after hiring your first employee depends on various factors. Wyoming's business laws define whether you are considered to be "doing business" in the state, which subsequently determines your registration obligation.

This decision is made on a case-by-case basis and requires careful legal consideration. If you're uncertain about whether your company should be registered, seeking advice from a legal professional is advisable.

Simplify US payroll tax compliance with Deel

While this guide provides essential information on Wyoming payroll taxes, federal and state requirements extend beyond what is covered above.

To streamline the process and ensure full compliance, companies can turn to Deel Payroll - US. For more compliance, benefits, and HR support, try Deel PEO.

Watch the video below to hear how Strada uses Deel Payroll - US to streamline operations across the US.

Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can simplify your US payroll processes and ensure compliance with state regulations.