Employers in Wyoming who have not lived there for at least a year prior to opening a business will now need to post a higher surety bond than previously. As of July 1, 2017, so-called nonresident employers will see an increase in their Wyoming nonresident employer bond depending on the different amounts of wages they expect to pay in a year.
Read on for an overview of the new amounts, what the bond covers, and what the penalties for non-compliant businesses are.
Wyoming House Bill 221
House Bill 221 passed earlier this month amends the surety bond requirements for nonresident employers in Wyoming.
According to 27-14-102(xiii) of the 2016 Wyoming Code, a nonresident employer is anyone who has not been a resident of the state for at least 12 months prior to commencing business operations in the state. The same applies to partnerships and corporations whose members do not comply with that requirement.
Until July 1, nonresident employers will be required to post a $10,000 Wyoming nonresident employer bond for up to $120,000 in wages they expect to pay for a year. Beyond that, such employers would need to add an additional $1,000 to the bond for every $120,000 or fraction thereof on top.
House Bill 221 changes these amounts, as well as the amount of penalties that employers may have to pay for violating the Wyoming Code and the requirements of the bill.
New bonding requirements
As of July 1, nonresident employers will need to pay a $20,000 bond for the first $120,000 in expected annual wages. Beyond that, another $2,000 will need to be added to the surety bond amount for every additional $120,000 in wages or a fraction thereof.
This surety bond must be posted to the Wyoming Department of Workforce Services upon the commencement of business activities by the nonresident employer. Prior to the passing of the bill, the bond’s purpose was defined in the Wyoming Code as securing:
- The payment of wages of employees performing work in the state
- All payments and obligations due by the nonresident employer under the Wyoming Worker’s Compensation Act and any other section of Title 27 of the Wyoming Code or workforce regulations and laws
The bill introduces an additional condition to be secured by the bond which is the payment of any civil penalties imposed by the Occupational Safety and Health Administration (OSHA).
The fines for violating or failure to comply with the Wyoming Code and the bill’s provisions are also increased by the bill. The previous $750 penalty is increased to $1,000 per offense.
How much does the Wyoming nonresident employer bond cost?
To nonresident employers who are new to surety bonds, the $20,000 bond amount may be alarming. To obtain a bond you needn’t pay the full amount, though. The cost of a bond is a small percentage of the full bond amount, and is determined by your surety company when you apply for the bond.
Your personal credit score is the factor that most influences the premium you will be offered. The higher your score, the lower your bond rate. To get a free quote on your bond, fill in our online surety bond application. Our bond professionals will get in touch with your shortly.
To speak to one of our professionals about the details of the Wyoming nonresident employer bond, call us at 866.450.3412. We will be happy to help!