Idaho payroll tax guide

Your Ultimate Guide to US Payroll in Idaho

Managing payroll in Idaho? Read our state-by-state guide to US payroll taxes to learn what you must withhold and deduct from employee wages.

Shannon Hodgen
Written by Shannon Hodgen
August 4, 2023
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Key takeaways

  1. Idaho employers must navigate unemployment insurance, personal income tax, and workers’ compensation to remain compliant with state payroll tax requirements.
  2. Even small businesses with only one Idaho employee must ensure they have workers’ compensation coverage to meet the state's regulations.
  3. Understanding and fulfilling Idaho’s state payroll tax requirements is essential for CEOs and Finance professionals to ensure the financial well-being of their businesses and compliance with the law.

Employers have to navigate a variety of regulations and requirements to ensure proper payroll withholding in each US state. This guide serves as an introduction to what employers need to pay and withhold from payroll in Idaho, including unemployment insurance, personal income tax, and workers’ compensation. 

Unemployment insurance (UI)

Unemployment insurance is a critical safety net that provides temporary financial assistance to individuals who lose their jobs through no fault of their own. As an employer in Idaho, it is your responsibility to contribute to the UI program by making timely payments.

The process of managing UI in Idaho has been made more accessible through an online portal provided by the Idaho Department of Labor. Through this portal, you can handle your unemployment insurance obligations efficiently. For additional guidance and information on paying UI, the Idaho Department of Labor website offers comprehensive resources to keep you informed and compliant.

Withholding personal income tax (PIC)

Another important aspect of state payroll taxes in Idaho is the withholding of personal income tax (PIC). This tax is deducted from your employees' wages and is withheld by you as the employer. Subsequently, you are required to remit the withheld amount to the state.

Idaho's personal income tax is a tax on the income of Idaho residents, ensuring they contribute to the state's revenue. To streamline the process of paying PIC, Idaho's State Tax Commission has introduced a self-service feature to make fulfilling withholding obligations easy. The Commission's website offers valuable information and assistance to help you navigate through the intricacies of PIC withholding in Idaho.

Paying Idaho workers' compensation (WC)

Workers' compensation is an essential form of insurance that provides coverage for employees who sustain work-related injuries or illnesses. As an Idaho employer, you are legally obligated to provide workers' compensation coverage, regardless of the size of your workforce.

While paying state payroll taxes is essential, workers' compensation ensures that your employees are protected in the event of work-related accidents or health issues. It is important to purchase workers' compensation coverage from a qualified commercial carrier in Idaho. The Idaho Industrial Commission provides additional information to help you identify a suitable carrier, ensuring your compliance with the state's workers' compensation regulations.

Simplify US payroll tax compliance with Deel

While this guide provides essential information on Idaho payroll taxes, payroll compliance and state requirements extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel. 

Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can streamline your US payroll processes and ensure compliance with state regulations.

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

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