Hiring Employees in Wyoming

how to legally hire And Pay Employees in Wyoming

Learn how to hire employees in Wyoming step by step, from registering as an employer to handling payroll, taxes, benefits, and termination according to state law.

Famous Photo Of Wyoming Landmark
Iconic Image Of Wyoming

Capital City

Cheyenne

Timezone

MST

(

GMT-7

)

Paid Leave

Voting Leave

Income Tax

None

Employer Tax

0.14% - 10.37%

Hiring in Wyoming requires a clear understanding of local labor laws, registration steps, payroll rules, and employer tax obligations – and getting compliance right from the start protects your business from costly penalties and operational delays.

This guide walks you through everything you need to hire confidently in Wyoming – from setting up as an employer to managing payroll, benefits, and state-specific employment regulations. It’s designed for companies of all sizes looking to build or expand their team in Wyoming while staying fully compliant at every step.

Wyoming Employment Facts At A Glance

Labor LawsWyoming Regulations
Minimum Wage5.15 dollars per hour, federal 7.25 usually controls
Pay Frequency1 required monthly minimum, many employers pay biweekly
Overtime Rules40 hours per week threshold, federal time and one half
Workers’ Compensation1 monopolistic state fund, coverage required for most industries
Required State Tax ID1 unemployment account number, issued by Workforce Services

Hiring And Onboarding Employees In Wyoming

Learn how to hire employees in Wyoming step by step, from registering as an employer to handling payroll, taxes, benefits, and termination according to state law.

4 Ways To Hire Employees In Wyoming

Hiring in Wyoming for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Wyoming:

  • Establishing a local entity: Creating a legal entity in Wyoming allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
  • Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Wyoming’s labor laws, helping you hire in Wyoming without navigating the complex legal landscape yourself.
  • Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Wyoming’s labor regulations while offering competitive employee benefits.
  • Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Wyoming has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Wyoming.

Complying with Wyoming specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Wyoming, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

How To Legally Hire And Pay Employees in Wyoming

This guide walks you through how to hire and pay employees in Wyoming while staying compliant with federal and state rules. You will see how to classify workers, verify work eligibility, run payroll, handle taxes, and manage benefits and terminations. Using these rules from day one helps your company avoid fines, back pay, and disputes with regulators or employees.

Classifying Your Workers Correctly

Your company must decide whether each Wyoming worker is an employee or an independent contractor using the IRS common law tests and federal guidance. Wyoming generally follows federal standards, focusing on behavioral control, financial control, and the overall relationship to determine status. If you misclassify workers, you may owe back wages, unpaid overtime, payroll taxes, interest, and penalties, and you could face claims under federal wage and hour laws.

You should document why you treated someone as a contractor and review roles regularly as duties change. To understand the risks and how to correct mistakes, you can review resources such as https://www.playroll.com/blog/employee-misclassification-guide and consult qualified counsel before reclassifying workers.

Verify Employee Work Eligibility

For every employee you hire in Wyoming, you must complete federal Form I‑9 within three business days of the start date to verify identity and work authorization. Wyoming does not have a statewide E‑Verify mandate for private employers, but you must use E‑Verify if required by a specific federal contract or program your company participates in. Employees may present any acceptable document combination from the I‑9 Lists A, B, and C, and you must physically examine originals unless federal rules allow remote inspection.

You must retain each I‑9 for at least three years after the hire date or one year after termination, whichever is later, and store them separately from general personnel files. Your company should apply the same verification process to all new hires in Wyoming to avoid discrimination claims and keep I‑9s available for inspection if requested by federal agencies.

Create an Employee Onboarding Process

When onboarding employees in Wyoming, you should issue a clear written offer letter outlining pay rate, pay schedule, exempt or nonexempt status, and key policies. You will need to collect a federal Form W‑4, any direct deposit authorization, and signed acknowledgments for your employee handbook, at‑will employment statement, and required safety or workers’ compensation notices. Wyoming does not mandate a state W‑4, but you must provide any federal or state posters that apply to your size and industry.

Your onboarding checklist should also capture emergency contacts, benefit enrollment forms, and any job‑specific training records. Building a consistent onboarding workflow helps you keep hiring costs visible and predictable as you grow your Wyoming team.

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How To Do Payroll in Wyoming: Methods & Frequency

When you run payroll in Wyoming your company needs to follow specific rules on how employees can be paid and how often those payments must occur. Understanding these requirements helps you avoid compliance issues and keep your team paid accurately and on time. Below, you’ll find the essential guidelines to make payroll simpler and fully compliant for your business.

Pay Frequency & Methods

Wyoming law requires you to pay employees at least once per calendar month, and you must communicate regular paydays in advance. If you discharge an employee, all wages are generally due on the next regular payday, while employees who resign must also be paid by the next scheduled payday unless a written policy promises earlier payment. If you fail to pay on time, your company can face wage claims, potential penalties, and liability for unpaid amounts plus costs and attorney’s fees.

Payment Methods (How You Can Pay)

In Wyoming, you can choose from several payment methods as long as employees receive full wages on time and you provide an accurate itemized wage statement each pay period.

  • Payroll Check: You can pay employees by check as long as it is payable at full face value in cash at a bank without fees to the employee.
  • Cash: You may pay wages in cash, but you must still give employees a written pay stub showing hours, rates, deductions, and net pay.
  • Direct Deposit (EFT): You can use direct deposit in Wyoming only if employees voluntarily authorize it and have the option to choose their financial institution.
  • Paycards: You may pay by payroll card if employees can access their full wages at least once per pay period without fees and you clearly disclose terms and alternatives.
  • Outsourced Payroll: You can outsource payroll to a provider, but your company remains responsible for compliance with Wyoming wage payment and recordkeeping laws.

Types of Payroll Taxes in Wyoming & Tax Contributions

When you hire employees in Wyoming, you must handle federal payroll taxes and state unemployment insurance, even though the state does not levy an income tax on wages. Your company needs to register with the appropriate Wyoming agency, calculate contributions correctly each pay period, and file reports on time to avoid penalties.

Employer Tax Contributions

As a Wyoming employer, you will pay federal Social Security and Medicare taxes, federal unemployment tax (FUTA), and Wyoming unemployment insurance (UI) contributions. You must register for a Wyoming UI account with the Department of Workforce Services before or shortly after you start paying wages in the state.

TaxWyoming AgencyApproximate Rate / Wage BaseKey Notes
Social Security (Employer Share)IRS6.2% on wages up to the annual federal wage baseYou must match the employee’s 6.2% contribution and deposit via federal payroll tax filings.
Medicare (Employer Share)IRS1.45% on all wages, no capYour company matches the employee’s 1.45% contribution; no additional employer share for the 0.9% surtax.
Federal Unemployment (FUTA)IRS6.0% on first $7,000 per employee, typical net 0.6% after creditTimely Wyoming UI payments usually qualify you for the standard FUTA credit reduction.
Wyoming Unemployment Insurance (UI)Wyoming Department of Workforce ServicesVariable rate on wages up to a state wage base set annuallyNew employers receive a standard rate, then experience rating applies based on your claims history.
Workers’ Compensation PremiumsWyoming Department of Workforce ServicesClass‑based rates per $100 of payrollWyoming operates a monopolistic state fund, so you must purchase coverage directly from the state where required.

Employee Payroll Tax Contributions

Your Wyoming employees have federal income tax, Social Security, and Medicare withheld from their pay, but there is no state income tax on wages. You must withhold and remit these federal amounts accurately and provide employees with Form W‑2 after year‑end.

TaxWithheld From Employee?Approximate Rate / Wage BaseKey Notes
Federal Income TaxYesBased on IRS tables and Form W‑4You calculate withholding using the employee’s W‑4 elections and current IRS withholding methods.
Social Security (Employee Share)Yes6.2% on wages up to the annual federal wage baseYou withhold 6.2% and match it with an equal employer contribution.
Medicare (Employee Share)Yes1.45% on all wages, plus 0.9% surtax over federal thresholdYou withhold 1.45% on all wages and an extra 0.9% from high earners, but you do not match the surtax.
Wyoming State Income TaxNo0% on wagesWyoming does not tax wage income, so you do not register for or withhold state income tax.

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Complying with Labor Laws: Wages & Working Hours In Wyoming

As an employer, it’s essential for your company to understand the state’s wage and hour rules so you can protect your business and your employees. From minimum wage requirements to overtime obligations, staying compliant helps you avoid penalties and maintain fair, consistent practices.

Minimum Wage in Wyoming

Wyoming’s statutory minimum wage is $5.15 per hour, but for most employees the higher federal minimum wage of $7.25 per hour applies under the Fair Labor Standards Act. Your company must pay at least $7.25 per hour to nonexempt employees unless a specific federal exemption or credit, such as the tipped employee credit, lawfully applies.

Working Hours in Wyoming

Wyoming does not set a daily maximum for adult working hours, so you may schedule employees as business needs require, subject to federal overtime rules and safety considerations. You are not required by state law to provide meal or rest breaks, but if you choose to offer short rest breaks of 20 minutes or less, they must be counted as paid time under federal law.

Overtime in Wyoming

Wyoming relies on federal overtime rules, which require you to pay nonexempt employees at least 1.5 times their regular rate for all hours worked over 40 in a workweek. You should clearly define your workweek in writing, track all hours worked, and confirm that any salaried employees you treat as exempt meet both the salary threshold and the federal duties tests.

Providing Employee Benefits And Leave In Wyoming

Wyoming does not mandate many employer‑paid benefits, so your company’s health insurance, retirement plans, and paid leave policies are key tools for attracting talent. If you average 50 or more full‑time employees across the U.S., you must comply with the federal Affordable Care Act’s employer shared responsibility rules, even though Wyoming has no separate state mandate.

Mandatory Leave Policies in Wyoming

Leave TypePaid or UnpaidWyoming Requirement
Family and Medical Leave (FMLA)UnpaidCovered employers with 50 or more employees must provide up to 12 weeks of unpaid, job‑protected leave under federal law.
Pregnancy Disability LeaveUnpaidWyoming follows federal law requiring you to treat pregnancy‑related conditions the same as other temporary disabilities.
Military LeaveUnpaid job‑protectedYou must comply with federal USERRA and provide leave and reinstatement rights for covered military service.
Jury Duty LeaveUnpaid (pay protected)You must allow time off for jury service and may not discipline or terminate an employee for serving, but pay is not required.
Voting LeavePaid, up to 1 hourWyoming law requires you to provide up to one hour of paid time off to vote if the employee does not have three consecutive nonworking hours while polls are open.

Paid Time Off in Wyoming

Wyoming does not require employers to provide paid vacation or general PTO, so you can design your own policy based on your budget and talent strategy. If you choose to offer PTO, you should put clear rules in writing on accrual, carryover, caps, and whether unused time is paid out at separation. Wyoming courts generally look to your written policy to decide if accrued PTO is a vested wage, so consistent application of your rules is critical.

Maternity & Paternity Leave in Wyoming

Wyoming has no separate state maternity or paternity leave statute, but eligible employees of covered employers may use federal FMLA leave for childbirth, bonding, and pregnancy‑related medical needs. Your company must treat pregnancy and childbirth the same as other temporary medical conditions for purposes of leave, benefits, and accommodations under federal anti‑discrimination laws.

Many Wyoming employers enhance competitiveness by offering some paid parental leave or by allowing parents to use accrued PTO or short‑term disability benefits during time away. Whatever you decide, document your policy and apply it consistently to all eligible employees.

Sick Leave in Wyoming

Wyoming does not mandate paid sick leave for private employers, so you are free to decide whether to offer separate sick time or a combined PTO bank. If you provide sick leave, you should define eligibility, accrual rates, carryover, and any documentation requirements in your handbook. Remember that federal laws, such as the Americans with Disabilities Act, may require additional unpaid leave or accommodations for serious health conditions regardless of your sick leave policy.

Military Leave in Wyoming

Your company must comply with the federal Uniformed Services Employment and Reemployment Rights Act (USERRA), which applies in Wyoming and protects employees who perform covered military service. You must allow unpaid leave for qualifying duty, maintain benefits as required, and reinstate returning service members to the same or comparable position if they meet USERRA conditions.

Some employers choose to offer paid military leave or differential pay to cover gaps between military and civilian earnings, which can be a valuable retention tool for Guard and Reserve members on your Wyoming team.

Jury Duty in Wyoming

Wyoming law prohibits you from firing or penalizing an employee because they are called for or serve on a jury. You are not required to pay employees for time spent on jury duty, but you must allow the necessary unpaid time off and cannot force them to use vacation or PTO unless your policy clearly states so and complies with law.

To reduce disruption, you can ask employees to provide jury summonses promptly and to report to work when they are excused for the day and still have reasonable working time left.

Voting Leave in Wyoming

In Wyoming, you must provide employees up to one hour of paid time off to vote in a primary or general election if they do not have three consecutive nonworking hours while the polls are open. You may specify when during the workday the employee can take this time, as long as it does not interfere with their ability to vote.

Your company should include a short voting leave policy in the handbook and train supervisors so they do not inadvertently deny or discourage employees from using this protected time.

Bereavement Leave in Wyoming

Wyoming law does not require employers to offer bereavement leave, paid or unpaid. Many employers still provide a few days of paid bereavement for the death of an immediate family member as a matter of compassion and competitiveness.

If you choose to offer bereavement leave, define who qualifies as a covered relative, how much time is available, and whether employees may use additional PTO if they need more time away.

Employment Termination Protocols in Wyoming

When it comes to terminating employment in Wyoming, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process

Wyoming is an at‑will employment state, so you or the employee may end the relationship at any time for any lawful reason, unless a contract or collective bargaining agreement provides otherwise. Your company should still follow a consistent termination process that includes documenting performance issues, collecting company property, revoking system access, and issuing final pay by the next regular payday.

Notice Period

Wyoming law does not require you to give advance notice of termination or for employees to provide notice before resigning, unless you have agreed to notice terms in a contract or policy. Even without a legal requirement, many employers request at least two weeks’ notice from employees and may provide similar notice for planned layoffs to support smoother transitions.

Severance

Severance pay is not required under Wyoming law, but you may choose to offer it in layoffs, reorganizations, or negotiated separations. If you provide severance, you should document eligibility, calculation methods, and any conditions such as signing a release of claims, and then apply the policy consistently to avoid discrimination concerns.

Hiring Employees in Wyoming with an employer of record

An Employer of Record makes it easy to hire in Wyoming if you don’t have your own entity set up, by handling the heavy-lifting for you. They take care of compliant employment contracts, all required taxes, and benefits administration for you, so you can focus on growth instead

The employer of record is responsible for:

  • Employment Compliance: Ensure all employment contracts comply with Wyoming's labor laws and regulations, including proper classification of employees.
  • Payroll Management: Calculate, process, and distribute employee salaries in accordance with Wyoming's payroll laws, including deductions for taxes and social security contributions.
  • Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
  • Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Wyoming's legal requirements.
  • Benefits Administration: Provide mandatory employee benefits as required by Wyoming's labor laws, such as health insurance, pension contributions, and statutory leave.
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ABOUT THE AUTHOR

Jaime Watkins

Jaime is a content specialist at Playroll, specializing in global HR trends and compliance. With a strong background in languages and writing, she turns complex employment issues into clear insights to help employers stay ahead of the curve in an ever-changing global workforce.

Hiring Employees in Wyoming FAQs

How do you set up payroll processing in Wyoming?

To set up payroll processing in Wyoming, you first obtain a federal EIN and then register with the Wyoming Department of Workforce Services for an unemployment insurance account and, if applicable, workers’ compensation coverage. Next, you create a payroll system that captures hours worked, applies at least the federal minimum wage and overtime rules, withholds federal income tax, Social Security, and Medicare (there is no Wyoming income tax), and pays employees at least monthly with proper pay stubs, while filing and depositing federal and state taxes on the required schedules.

How does an Employer of Record help you hire in Wyoming?

An Employer of Record helps you hire in Wyoming by acting as the legal employer for your local staff, so you do not need to form a Wyoming entity or open your own unemployment and workers’ compensation accounts. The provider handles compliant contracts, onboarding, payroll, tax withholding, and benefits administration under Wyoming and federal law, while you manage the employee’s role, performance, and day‑to‑day responsibilities.

Is there a minimum wage requirement for employees in Wyoming?

Yes, there is a minimum wage requirement for employees in Wyoming, but the practical floor is usually the federal rate. Wyoming’s state minimum wage is $5.15 per hour, yet most nonexempt employees must be paid at least the higher federal minimum wage of $7.25 per hour, and your company must also follow federal overtime rules for hours worked over 40 in a workweek.

How much does it cost to employ someone in Wyoming?

The cost to employ someone in Wyoming includes gross wages, the employer share of Social Security and Medicare, federal unemployment tax, Wyoming unemployment insurance contributions, and any required workers’ compensation premiums, plus the cost of any benefits you choose to offer. Because Wyoming has no state income tax on wages, your payroll tax burden is somewhat lower than in many states, but you should still budget an additional 15–25 percent of gross pay to cover taxes, insurance, and benefits when planning to hire in the state.

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