WY · Payroll tax 2026
The true cost of hiring in Wyoming
What a W-2 employee actually costs an employer in Wyoming— and how that compares to a 1099 contractor — with the state's real 2026 unemployment-insurance rates built in.
Wyoming's economy runs on energy extraction, agriculture, and tourism — Casper, Cheyenne, and Jackson Hole anchor an employer base where payroll costs diverge sharply from high-tax coastal states. There is no state income tax in Wyoming, which eliminates one employer compliance obligation entirely and simplifies payroll setup. What remains on the employer side is federal payroll tax and the state unemployment insurance contribution. New employers pay a 2.35% SUI rate on the first $32,400 of each W-2 employee's wages, which works out to a maximum annual SUI cost of $761.40 per worker before the rate adjusts to your experience account. On top of that, Wyoming operates a state-monopoly workers' compensation fund through the Wyoming State Insurance Fund (WSIF) — private workers' comp carriers are not an option for most industries, so coverage is mandatory through that single channel. Federal obligations (6.2% Social Security up to $176,100, 1.45% Medicare, 0.6% FUTA up to $7,000) apply exactly as they do everywhere else. The combined effect: an employer hiring a $60,000-a-year W-2 employee in Wyoming faces roughly $6,000–$8,000 in mandatory employer-side costs above base salary, before any benefits.
Estimate a Wyoming hire
Pre-filled with Wyoming's 2.35% new-employer SUI rate. Adjust salary, benefits, and the 1099 rate to fit your hire.
Wyoming employer tax facts
| Item | WY |
|---|---|
| New-employer SUI rate | 2.35% |
| SUI taxable wage base | $32,400 |
| Federal FICA (employer) | 7.65% |
| FUTA | 0.6% |
| State income tax on wages | None |
| Worker classification test | Common-law control test |
Extra employer taxes: No state income tax; state-monopoly workers' comp (WSIF).
Example: a $75,000 hire in Wyoming
At a $75,000 base salary with typical benefits, a W-2 employee in Wyoming costs an employer $99,841 per year — $24,841 above base pay. An equivalent 1099 contract at $75,000 would cost $24,841 less; the breakeven contract rate is $99,841.
Misclassification risk in Wyoming
Test: Common-law control test
Common-law test; back premium liability; no dedicated statute.
Penalties by stateCompare nearby rates
Wyoming's 2.35% new-employer SUI rate sits near Missouri (2.38%), Hawaii (2.4%), Oregon (2.4%), Connecticut (2.2%). See the full 51-state comparison or the 2026 employer payroll tax reference.
Wyoming hiring-cost FAQ
- What SUI rate and wage base applies to new employers in Wyoming?
- New employers in Wyoming pay a 2.35% state unemployment insurance rate on the first $32,400 of each employee's wages per year, for a maximum annual SUI cost of $761.40 per worker. Your rate will shift once Wyoming assigns an experience rating based on your actual claims history.
- Does Wyoming impose a state income tax on employee wages?
- No. Wyoming has no state income tax, which means employers have no state income tax to withhold from paychecks and no related filing obligations. This is one of only a handful of states with this structure, and it meaningfully reduces payroll administration overhead.
- What happens if Wyoming reclassifies a 1099 contractor as a W-2 employee?
- Wyoming applies the common-law control test to determine worker status, and there is no dedicated misclassification statute with fixed per-worker fines. However, a reclassification finding triggers back premium liability to the Wyoming State Insurance Fund for unpaid workers' comp coverage — an open-ended exposure that depends on the duration of misclassification and the worker's wage history.