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Insurance offered through OnPay Insurance Agency, LLC (CA License #0L29422)
Updated: January 1, 2024
When outsiders think of Wyoming, they probably envision everyone wearing cowboy hats riding around on horseback in Yellowstone. Well, that one space cowboy does spend a whole lot of time in Jackson. But you know full well Wyoming is a lot more than just Harrison Ford pretending to be a cowboy. It’s your own slice of paradise that big city dwellers seek out in order to get away from their daily grind. You enjoy the outdoor life in Wyoming, and that’s why you opened a small business here. However, there’s one thing that certainly doesn’t qualify for paradise life: payroll taxes. But hey, at least Wyoming doesn’t charge a state income tax, right?
We designed a payroll calculator with you in mind. The calculator simplifies the payroll process, so you can spend more time hanging out and less time stressing out. Simply enter wage and W-4 information for each employee, and our calculator will process your gross pay, net pay, and any federal deductions.
Federal payroll taxes for Wyoming employers
First and foremost, let’s walk through a summary of federal payroll taxes that all of your employees have to pay, no matter which state they live in. If you would like to see each step in detail, check out the step-by-step guide that we created just for you.
- Calculate Gross Pay.
- For hourly employees, simply multiply their hourly rate by the number of hours worked during the pay period. Remember to increase the rate for any overtime hours worked.
- For salaried employees, take their annual salary and divide it by the number of pay periods.
- Bonuses, commissions, or tips also get added to gross pay.
- Subtract Pre-Tax Deductions. If your employees have any pre-tax deductions like 401(k), for example, subtract them from gross pay so that their taxable income is reduced by this amount.
- Calculate the Federal Income Tax. Now that you have adjusted gross pay, you can calculate the amount of federal income tax that your employees owe the IRS. The tax rate ranges from 0% all the way up to 37%. We won’t go through the nitty-gritty here, but you can find all the minute details in the IRS Publication 15-T.
- Deduct FICA Taxes. FICA stands for Federal Insurance Contributions Act, and it collects two taxes that both employees and employers have to pay: Social Security and Medicare.
- Social Security Tax: Withhold 6.2% of each employee’s taxable wages up to $168,600 for the year. If an employee makes more than $168,600, any salary above this amount is exempt. As an employer, you also have to pay the IRS 6.2% of your employee’s salary dollar-for-dollar.
- Medicare Tax: Withhold 1.45% of each employee’s taxable wages up to $200,000 for the year. If an employee makes more than $200,000, an Additional Medicare Tax (super original name, right?) of 0.9% should be withheld. As an employer, you’re only responsible for matching 1.45% of the first $200,000.
- Calculate the FUTA Tax. FUTA stands for the Federal Unemployment Tax Act. Employers are responsible for paying 6% of each employee’s first $7,000 of taxable income. Employees are not responsible for paying FUTA. Note that if you pay your state unemployment tax in full and on time, you are eligible to receive a 5.4% tax credit, bringing your effective FUTA tax rate down to 0.6%. It’s a 90% savings!
- Subtract Post-Tax Deductions. Not many of your employees will have post-tax deductions, but if they do, which can be anything from garnishments like child support to life insurance, you will need to make a deduction here and send the deduction to the appropriate jurisdiction.
Does Wyoming (WY) have state payroll taxes?
None! Nada! Zilch! The Cowboy State has no state income taxes. But you knew this already.
Wyoming state unemployment insurance (SUI)
As an employer, you have to pay the state’s unemployment insurance. For 2024, Wyoming unemployment insurance rates range from 0.09% to 8.5% with a taxable wage base of up to $30,900.00 per employee per year.
If you’re starting a new small business (congratulations!), new employer rates range from 0.9% to 8.5% depending on your industry. Call the unemployment tax division at (307) 235-3217 to get your exact rate.
Now prep your signature!
You’re almost at the finish line! Calculate each employee’s net pay, cut those checks (or transfer those direct deposits, whatever suits your employees’ fancy), and make sure you have enough left in your own account to cover FICA and UI taxes.
You will need to use Form 941 to file federal taxes quarterly, and Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. More details about employment tax due dates can be found here.
Additional Wyoming state tax resources
If you’re looking for more information, here are a couple of resources that we think can help you understand Wyoming payroll a little better:
Wyoming Department of Revenue | Contact Information
Wyoming Department of Workforce Services (307) 235-3217 | Register Your Business | Unemployment Insurance Tax Forms | More Information on Unemployment Insurance
More calculators for Wyoming employers
Wyoming employers can quickly calculate their employees’ gross pay, net pay, and deductions using the payroll calculator at the top of this page. But sometimes, businesses have to do a little more math to make sure employees get paid correctly. For example, do your customers sometimes leave tips for your employees? Keep in mind that you are responsible for withholding taxes from your workers’ paychecks based on the tips they receive. Furthermore, if an employee leaves for another company, you’ll need to calculate their final pay. So, if you need a little more help with the number-crunching, check out some of the calculators below.