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Can I hire employees as independent contractors to save money on taxes in Wyoming? What are the requirements?

Based on the context documents, it is important to note that the state of Wyoming has specific laws and regulations regarding the classification of employees as independent contractors.

Requirements for Hiring Independent Contractors in Wyoming

To answer your question, it is important to note that the state of Wyoming has specific laws and regulations regarding the classification of employees as independent contractors. In general, to hire an independent contractor in Wyoming, the following requirements must be met:

  1. The worker must be free from control and direction in the performance of their work, both under the contract and in fact.
  2. The work performed must be outside the usual course of the hiring entity’s business.
  3. The worker must be customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed.

If these requirements are not met, the worker may be considered an employee rather than an independent contractor, and the hiring entity may be responsible for paying employment taxes and providing benefits.

Penalties for Misclassifying Employees

It is important to note that misclassifying employees as independent contractors can result in penalties and fines. In addition, Wyoming law requires employers to maintain accurate records of all employees and independent contractors, including hours worked and wages paid.

Licenses; permits; bonding

There are no specific applicable provisions for licenses and permits for this article. However, bonding requirements may apply to secure payment of sales taxes by nonresident prime contractors. Nonresident contractors may be required to file with the department of revenue a surety bond or legal security equal to three percent (3%) of the payments due under the contract or an amount determined by the department. The bond shall be conditioned upon the payment of all sales taxes which become due and payable to this state under the contract or in the real property development. This bond requirement does not apply for a nonresident contractor who has furnished a surety bond as provided by paragraph (v) of WYST 39-15-306.

Conclusion

In conclusion, while it may be tempting to hire employees as independent contractors to save money on taxes, it is important to ensure that all legal requirements are met to avoid penalties and fines. If you have any further questions or concerns, it is recommended that you consult with a legal professional.

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Source(s):
Jurisdiction

Wyoming