Payroll tax in Wyoming: What employers need to know [2024]

Payroll taxes are fees taken from business and employee earnings by governments to help pay for social programs. But despite that simple definition, payroll taxes can be quite a complex topic—especially in states like Wyoming, where there are four different types.

Payroll taxation happens at the federal, state, and sometimes municipal level to support everything from Social Security and Medicare to local projects—like maintaining that park you like to walk to during breaks!

Generally, employees and employers split the responsibility for paying payroll taxes. And the amount due—and when—can vary based on the year, the company industry and size, employee pay rates, and more.

Getting the details wrong may lead to compliance hiccups and hefty fines. So, as the workforce becomes more distributed, employers will need more payroll tax guidance to help manage taxes across all the states where employees reside. 

While Wyoming has a more straightforward taxation system than places like California and New York, it’s still critical to understand the tax nuances in the Cowboy State. Follow along for a guide on Wyoming taxes, including when they’re due and how to pay them seamlessly and on time to avoid stress and compliance concerns.

The 4 types of Wyoming payroll taxes 

Employers running a business in Wyoming only have one state-level payroll tax: state unemployment insurance tax (also known as SUTA or UI). The Wyoming Department of Workforce Services administers the SUTA tax. All other payroll taxes in Wyoming are administered on the federal level. 

Wyoming employers who have paid more than $1,500 in wages during a calendar quarter or employed a single worker in 20 different weeks over a year must withhold unemployment insurance tax. Federal and state laws require employers to report new hires and rehires to the Wyoming New Hire Reporting Center within 20 days of their hire date; this helps track employment and enforce withholding requirements. 

Below, we’ll cover the ins and outs of Wyoming’s state payroll tax along with federal taxes. 

Federal FICA payroll taxes

Every eligible employer in the US, including in Wyoming, has to take the Federal Insurance Contributions Act (FICA) into account when deducting payroll taxes from employee paychecks. 

The tax withholding rate for Social Security is 12.4%, which the employee and employer pay at 6.2% each. The wage base limit is $168,600 for 2024.

For Medicare taxes, the withholding rate is 2.9%, which the employee and employer again split at 1.45% each. There is no wage base limit. This number does change by year and may also vary by industry. The IRS website is a good resource for the most up-to-date FICA tax information.

Federal income tax 

Though Wyoming doesn’t collect personal income tax, employers in the state still have to take the federal income tax out of employees’ paychecks. 

Employee contributions pay for the federal income tax, and the rate depends on their filing status, wages, and more. There are seven federal income tax brackets to be aware of in 2024. These also shift every year.

Federal unemployment insurance tax 

Most employers, including those in Wyoming, are wholly accountable for paying a federal unemployment tax, per the Federal Unemployment Tax Act (FUTA). This tax is in addition to any statewide unemployment taxes they must pay. Use this series of tests provided by the IRS to find out if you’re responsible for paying FUTA tax. 

Currently, the FUTA tax rate is 6% per year on the first $7,000 you pay to each employee. However, employers who also pay state unemployment tax may be eligible for a tax credit of up to 5.4% on FUTA tax. Thankfully, it’s not too hard to qualify for the full credit. You just have to pay your state unemployment taxes on time and not be operating in a credit-reduction state. Form 940, the FUTA Tax Return, will have all the information you need to know.

State unemployment insurance tax 

The SUTA tax supports Wyoming's state Unemployment Insurance (UI) program, which offers financial aid to qualified individuals who become unemployed at no fault of their own. 

The Wyoming Department of Workforce Services (DWS) collects unemployment tax, and the Unemployment Insurance Division collects employer registrations and reports on the UI program. You can make UI claims, register with the program, file quarterly earnings reports, and pay the SUTA tax at wyui.wyo.gov.

Wyoming state unemployment tax rates are particular. Per the UI program website, businesses that have been around for three or more years will be assigned a base rate that’s dependent on what the program calls their “specific benefit ratio.” Additional factors, including the INEFF/NC adjustment and Employment Support Fund factors, are then added to determine the total tax rate for the year.

For businesses younger than three years, the base state unemployment tax rate is a combination of an industry-specific number plus those additional factors from above. To get the best rate, a business in this category should fill out a Joint Business Registration form (available when you sign up at wyui.wyo.gov).

Needless to say, keeping up with ever-changing payroll tax rules and rates, even in “simpler” locations like Wyoming, is a process that’s both time-consuming and prone to human error. But you have the power to reduce burnout and restore accuracy with Rippling’s payroll compliance software, which seamlessly handles payroll, from calculating taxes to filing paperwork to making payments—on time, every time.

For even more efficiency, you can let a professional employer organization (PEO) take the wheel. Rippling PEO handles even the most complex HR and IT tasks associated with hiring remote workers from other states, complete with automatic state and local tax registration and other features that keep you compliant no matter how distributed your talent gets.

Unemployment tax due dates in Wyoming

Wyoming employer earnings reports and unemployment tax payments are due to the DWS on a quarterly basis. Currently, the pay schedule is as follows:

• Q1 report and payment due April 30, delinquent May 1
• Q2 report and payment due July 31, delinquent August 1
• Q3 report and payment due October 31, delinquent November 1
• Q4 report and payment due January 31, delinquent February 1

These deadlines may be adjusted when they fall outside of business days. For instance, if the final day of the month is on a weekend or a holiday, the deadline will be shifted to the subsequent business day.

If you’re worried about missing a deadline, keep an eye on the reporting due dates page for any changes—or, better yet, rely on payroll software to keep you on time!

How to submit unemployment payroll taxes in Wyoming

There are two paths you can take to get those unemployment insurance taxes paid up for your Wyoming employees.

Wyoming’s Unemployment Insurance portal 

All roads eventually lead back to the UI program website when it comes to SUTA taxes. To submit your payments for Unemployment Insurance taxes, follow the instructions in your employer account at WYUI.wyo.gov.

If you don’t have an account yet but are an established employer in the state of Wyoming, these instructions may help you with signing up. Keep in mind that you’ll have to have several credentials on hand, including EAN, FEIN, and more. 
For a refund on overpayment into the Unemployment Insurance system, employers can email dws-csp-uirefunds@wyo.gov. To get help with your UI account, email dws-csp-uitaxhelp@wyo.gov.

Rippling’s full-service payroll software 

If you want an even simpler solution, try Rippling’s payroll software. Sync HR and payroll data to run payroll in just minutes. Rippling ensures error-free employee payments, automated payroll tax calculation, and on-time filing at the federal, state, and local levels. 

With Rippling, your employees can focus on meaningful work instead of manually calculating paychecks, creating fussy reports, and sharing sensitive information with less-than-secure local government portals. 

For more tips on selecting a payroll service provider that meets your business needs—not just across state lines but across the world—don’t miss our guide on How to choose global payroll software. 

FAQs about Wyoming payroll taxes

What is the quarterly report for unemployment taxes in Wyoming?

Instructions for completing your quarterly unemployment insurance tax summary report for Wyoming can be found here. 

Are local taxes collected in Wyoming?

Citizens of Wyoming do pay local taxes, which are collected in most states by state, county, or local governments to support public services. As we’ve noted, they are subject to neither personal income tax nor corporate income tax. The state sales tax is around 4%.

Can payroll tax returns be audited in Wyoming?

Yes. The Employment Tax Division oversees audits and compliance for Wyoming’s Unemployment Insurance and Workers’ Compensation programs. To learn more about the audit process, read this detailed FAQ.

Are nonprofit organizations subject to payroll taxes in Wyoming?

According to the Wyoming Nonprofit Network, only nonprofits employing four or more workers for 20 weeks or longer are required to participate in Wyoming’s Unemployment Insurance program.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for, tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.