A Wyoming independent contractor agreement is a legal contract that establishes the expectations for a client-contractor relationship. It includes details like the compensation the contractor will receive, the scope of work the contractor will perform, and the termination of the services.
- Worker Classification: A variation of the ABC test
- Tax Structure: No State Income Tax
- Definition: Wyo. Stat. § 27-3-104
- At-Will Employment: Yes
Independent Contractor Definition
Under Wyo. Stat. Ann. § 27-3-104, any individual who performs service for wages is an employee unless they fall under the independent contractor exception.
Wyoming law has exceptions for religious and government workers, agricultural laborers, some commission-based workers, and those who operate in facilities where they rent space but are working for themselves (such as barbershops and hair salons).
Worker Classification Test
Wyoming uses a modified version of the ABC test to determine if a worker is an independent contractor. Wyoming defines an independent contractor as an individual who performs service for wages, is free of control or direction over the services, represents their services as an independent contractor, and may substitute another individual to perform those services.
Specifically, a worker must fulfill prongs A and C of the ABC test, which are:
- A: The worker is free of all control and direction over the work, by the wording of the contract and in fact.
- C: The worker engages in an independent trade, occupation, or business of the same type as the work being done.
Rights and Responsibilities
Wyoming has very few protections for independent contractors. The safest course of action for an independent contractor is to have an agreement that clearly spells out the scope and nature of their project.
However, these workers do have the right to choose which jobs to accept and decline. They can also dictate how they complete their work as long as the final result meets the client’s standards.
State Taxes
Wyoming does not have a state income tax. Wyoming independent contractors who have filed as LLCs are responsible for paying state business taxes.
Independent contractors are also responsible for paying the federal self-employment tax to cover both Medicare and Social Security taxes.
Filing for Unemployment
Independent contractors are not employees under Wyoming law. So, they are barred from filing for unemployment.
Sample
Download a Wyoming independent contractor agreement in PDF or Word format:
