Wyoming Hourly Paycheck Calculator
Wyoming is known as the Cowboy State—conjuring up images of wide-open spaces and a simpler pace of life. The payroll taxes and paycheck rules for Wyoming fall in line with the idea of a simpler pace of life, too. That’s because there aren’t very many, leaving you time to get back to running your business or relaxing and enjoying life in Wyoming.
To get you started, we’ve answered the most frequently asked questions about payroll taxes and paycheck rules in Wyoming.
Wyoming state payroll taxes
What’s the state income tax rate in Wyoming?
Zero. Wyoming is one of nine states without a personal state income tax.
Does Wyoming have an unemployment tax?
Rates vary based on a number of factors. New employers will pay a set rate for the first three years. “Experienced” employers will pay a rate that takes into account historical payroll amounts and claims paid to your former workers. The base rate is also adjusted for various factors, including whether the unemployment trust fund is over or underfunded. Check The Wyoming Workforce Services webpage for more information.
For 2022, Wyoming only taxes the first $27,700 of each employee’s wages. This wage base is generally adjusted each year for inflation.
Each quarter, you’ll need to calculate the amount of tax you owe, make payment and file a summary report on the Workforce Services portal.
When is Workers’ Compensation insurance required in Wyoming?
Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
Does Wyoming require employers to notify them of new employees?
When are hourly employees in Wyoming paid for overtime?
Wyoming follows the overtime rules laid out in the Fair Labor Standards Act, which requires hourly employees to be paid at least one and a half times their regular hourly pay rate when they work more than 40 hours in a workweek.
What’s Wyoming’s minimum wage?
For 2022, Wyoming’s minimum wage is $7.25 per hour, in accordance with federal law since the state minimum wage is lower.
When do final paychecks need to be provided to employees who resign or are let go?
Employers have until the next regularly scheduled pay date to provide employees with their final paycheck when they resign or are terminated.
Are Wyoming employers required to provide paid leave to employees?
Voting leave is the only type of paid leave that’s required in Wyoming. With some exceptions, employers must provide at least one hour of paid time off to allow employees to vote in federal Congressional elections.
Federal payroll taxes in Wyoming
Federal income tax (FIT)
When is FIT taken out of employees’ paychecks?
Unless an employee is exempt from FIT withholding, each paycheck should have FIT taken out.
How is the FIT amount calculated?
The amount to take out of employees’ paychecks is determined by information Form W-4, Employee’s Withholding Certificate.
Employees should complete this form when they begin work. Although a new Form W-4 isn’t required each year, employees should review it annually and fill out a new one if their tax situation changes.
With the employee’s answers from Form W-4, their pay amount, and some lengthy tax tables, you’ll be able to figure out how much tax to withhold. If you prefer a faster and easier answer, consider using payroll software.
Federal unemployment tax (FUTA)
Who pays FUTA and how is it calculated?
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but many employers only have to pay 0.6% each year.
Social Security and Medicare tax (FICA)
How is FICA tax calculated?
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
|FICA Tax in 2022|
|Social Security tax (each party pays)||6.2% on first $147,000 in wages|
|Medicare tax (each party pays)||1.45% on all wages|
Additional Medicare tax
Who pays the Additional Medicare tax?
Certain workers will pay the Additional Medicare tax. This tax is in addition to the 1.45% paid under FICA.
Any worker who earns more than $200,000 per year will have the Additional Medicare tax taken out of their pay. For 2022, the tax rate is 0.9% on the excess wages.
Paying and filing federal payroll taxes
When is FUTA tax paid?
Generally, FUTA is paid annually using Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return. In some instances, quarterly payments are required.
When is FIT, FICA, and the Additional Medicare tax paid?
Payment frequencies for FIT, FICA, and the Additional Medicare tax can be monthly or semi-weekly. It depends on the amount of tax you owe.
Quarterly summary reports are required using Form 941, Employer’s Quarterly Federal Tax Return. This form reconciles how much tax is owed with how much tax was paid. And if there’s a balance due, you’ll need to send payment when you file the form.
Those are the nuts and bolts of payroll taxes and paycheck rules in Wyoming. If you’re ready to tackle payroll on your own, great! But if you need a bit more help, give Gusto a whirl. We have plans to fit every business’ needs. And if you want to take it a step further, our team can help with onboarding new employees and setting up benefit plans.