Wyoming Surety Bond: Nonresident Employer Bond Compliance (2024)

Doing business in Wyoming can be a rewarding venture. However, if you’re a nonresident employer, there’s one crucial compliance requirement you need to know about: the Wyoming Surety Bond. This bond is a type of insurance that protects your employees and the state.

In this article, we’ll help you better understand the Wyoming surety bond process and what it means for you and your business.

What Is Nonresident Employer Status in Wyoming?

In Wyoming, if you’re an employer who doesn’t live in the state but pays employees who do, you’re considered a nonresident employer. You’ll need to get a surety bond if you expect to pay more than $4,000 per month in wages to employees working in Wyoming.

There’s also an annual threshold to be aware of. If you anticipate paying more than $120,000 per year in wages, you’ll also be required to obtain a surety bond.

The bond amount is not a fixed number. Instead, Wyoming calculates it based on your projected payroll. It’s crucial to get this calculation right. Underestimating your payroll could lead to an insufficient bond, resulting in penalties or other complications for your business.

How To Calculate the Bond Amount

Determining your Wyoming surety bond amount requires a simple calculation based on your estimated payroll:

The minimum bond amount is $8,000. This covers the first $4,000 of your expected monthly payroll in Wyoming.
For every additional $1,000 in monthly payroll beyond the initial $4,000, you’ll need to add $2,000 to your bond.

Let’s say your estimated monthly payroll in Wyoming is $7,000. Then your calculation would look like this:

$8,000 (base amount) + $6,000 (3 x $2,000 for the additional $3,000 in payroll) = $14,000 surety bond.

Once again, it’s vital to estimate your payroll accurately. If you’re unsure if you’ve estimated correctly, it’s wise to consult with a professional for guidance.

By understanding this formula, you can confidently determine the correct bond amount needed for your business.

What Are the Benefits of a Surety Bond?

The Wyoming Surety Bond is a financial safety net for your employees and the state. It guarantees that your employees working in Wyoming will receive their earned wages, even if your company faces unexpected financial challenges. This protection provides your workforce with peace of mind and ensures fair treatment.

Think of the bond like a safety deposit box. It holds the money to cover any unpaid contributions your business owes to Wyoming state programs like workforce services and workers’ compensation. The bond also guarantees you meet other financial obligations, such as paying potential penalties for not following the rules.

Beyond protection, having your own surety bond shows you are committed to the right business practices in Wyoming. Your employees, business partners, and customers will see that you’re a trustworthy company.

Consider what that could mean for your business. Increased trust can lead to more traffic, drive sales, and improve workplace morale. Additionally, many government agencies prefer doing business with companies with surety bonds.

You must look at your surety bond as an investment in your company. With a surety bond, you’re proactively protecting your workers and fulfilling your financial obligations. In the end, your business reputation might get a nice boost.

How To Obtain a Wyoming Surety Bond

Obtaining a Wyoming Surety Bond doesn’t have to be complicated. It involves a few key steps that are easy to manage.

Select a Provider

First, you’ll need to find a surety bond company authorized to do business in Wyoming. You can search online or ask for recommendations from other businesses or professionals.

Complete an Application

Once you’ve chosen a provider, you must complete a bond application. Be ready to provide information about your business. This step usually requests your legal name, address, and structure.

You’ll also need to share details about your estimated payroll in Wyoming, as this will determine the bond amount. After submitting your application, underwriters at the surety bond company will review it.

Application Review

Reviewers will examine factors like your business’s financial stability, credit history, and experience. If they determine that your business is a good risk, they’ll issue you a quote for the bond premium. This quote represents the amount you’ll need to pay for the bond.

Purchase and Issuing

If you’re happy with the quote, you can move forward and purchase the bond. Once you’ve paid the premium, the surety bond company will issue your bond. It’s important to keep a copy of the bond for your records and provide it to the Wyoming Department of Workforce Services as proof of compliance.

Additional Factors To Consider

Choosing the right surety bond provider is essential. Look for a company with a strong reputation and experience handling surety bonds in the state of Wyoming. Excellent customer service is also a plus.

Finally, don’t be afraid to ask questions. Take the time to compare quotes, as you should have several from trying to find the best rate. It’s a great way to help you make the right decision for your business.

It’s important to note that this is part of setting up payroll accounts in Wyoming. If you’ve automated this setup with Mosey, we’ve already taken care of the surety bond requirement for you.

How To Renew or Cancel Your Bond

Your Wyoming Surety Bond isn’t a one-and-done deal. It’s valid for two years, after which you’ll need to renew it to maintain compliance. The renewal process is similar to the initial application.

You’ll typically need to update your business information, payroll estimates, and financial records. If everything checks out, the surety bond company will review these details and issue a new bond.

However, there are times when your bond can be canceled or forfeited before the two-year term ends. For example, if your company stops operating in Wyoming or significantly reduces its workforce there, the bond could be canceled.

If you fail to meet your financial obligations to employees or the state, the bond could be used to cover those costs. That’s why it’s important to stay current with your bond payments and obligations.

Additionally, stay informed about any changes to Wyoming’s bond requirements. Laws and regulations can change, and what’s required today might not be the same tomorrow.

Keep an eye on updates from the Wyoming Department of Workforce Services and check in with your surety bond provider regularly. They’ll give you all the latest news and updates for handling changes.

While maintaining business compliance is an ongoing process, it’s a small price to pay when you consider the peace of mind you receive in return.

Choose Mosey for Wyoming Compliance

As a nonresident employer in Wyoming, understanding the state’s surety bond requirements is a must. Remember, the bond protects your employees by ensuring they receive their wages and safeguards Wyoming by covering unpaid obligations.

A surety bond also shows your commitment to following state laws, which builds trust and strengthens your reputation. Calculating the correct bond amount, selecting a reputable provider, and staying informed about regulatory changes are key steps in the process. If it feels overwhelming, consider compliance management from Mosey.

Mosey’s business compliance platform helps you stay on top of changing requirements so you can focus on running your business. Don’t let compliance become a burden — take the necessary steps to protect your business and your employees in Wyoming. And, automate payroll registration in Wyoming with Mosey to take the work off your plate altogether.

The Platform for State and Local Compliance