- Tax Alerts
Wyoming Non-Resident Employer Bond RequirementsApril 04, 2018 Alerts
Non-resident employers must file the following bond in support of their Workers’ Comp amount, and to ensure payment of wages to those employed in Wyoming.
Effective July 1, 2017, non-resident employers must file the following bond in support of their Workers’ Compensation account and to ensure the payment of wages to all employees employed in Wyoming.
A minimum $20,000.00 Non-Resident Employer’s Surety Bond must be filed in all cases when anticipated monthly payroll is greater than $10,000.00. The amount of the bond may be greater than $20,000.00 depending upon the size of your payroll. It increases by $2,000.00 for each $10,000.00 (or portion thereof) in excess of $20,000.00. This bond must be kept in place for a period of at least two years and there is no maximum amount for the bond.
What Qualifies as a Non-Resident Employer?
Non-resident employers are those employers that have not resided in the State of Wyoming for one full year prior to beginning operations in this state.
Why Do I Need This Bond?
Wyoming non-resident employer bonds ensure that employers promptly pay and reimburse the Department of Workforce Services and Workers’ Compensation any and all premiums due to the division and promptly pay all wages due to the principal’s employees in connection with the contracted work.
The bond protects the state and employees from financial loss if the employer fails to comply with the letter of law and the terms of the surety contract.
Are There Any Penalties?
Penalty for Failure to Post Bond: Wyoming Statute 27-14-307 states, “The willful failure of any nonresident employer in a covered employment to give bond or other security required by this act constitutes a misdemeanor, punishable by a fine of no more than five $5,000.00, imprisonment for no more than one year, or both.”
Do I Qualify for Withdrawal from the Bond?
Upon application by a non-resident employer, the director may permit withdrawal of any security if the employer has:
- Complied with the security requirements and made all necessary payments for two years;
- Demonstrated the employer has been a resident of the State for two years and intends to remain a resident;
- Acquired real property as a non-resident with an equity value greater than or equal to the value of the bond or other security required;
- Complied with all other requirements under the Workers’ Compensation Act.
Is There Any Form of Payment I Can use?
An alternate method of payment for the Surety Bond requirement is a Cash Deposit, which may be in the form of a Cashier’s Check or a Letter of Credit from your Financial Institution. There is also an arrangement whereby equity in owned real property in Wyoming may be used for security.
Contact Information for Additional Questions
Wyoming Employer Services
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.