Idaho Hourly Paycheck Calculator
What comes to mind when you think of Idaho? Potatoes? Mountains? Farms? Those are all correct answers. If you’re a fan of mashed potatoes, and who isn’t, then you know Idaho has the goods. And if payroll taxes have you mashing your head against a wall trying to keep track of tax rates, forms, and deadlines, we feel your pain.
We’ve put together this guide to Idaho payroll taxes to help small business owners like you. After you read it, you’ll be able to conquer payroll taxes and get back to enjoying Idaho’s beauty.
Idaho state payroll taxes
Idaho withholding tax
All Idaho employers hold back part of an employee’s wages to cover the worker’s annual tax bill.
With personal income tax rates ranging up to 6%, it’s challenging to know how much tax to take out. But don’t worry, we’ll walk through the entire process.
Starts by getting Form ID W-4, Employee’s Withholding Allowance Certificate, from each employee. Along with personal information, this form will give you most of the information you need to figure out how much tax to withhold.
Idaho has several methods you can use to compute the withholding tax: the percentage computation method, the annualized wage method, and the wage bracket method.
Each of these methods uses information from Form ID W-4 and some charts and formulas to calculate the tax. You need to do these calculations for each employee. Or an easier way is to use payroll software that will automatically make calculations for you.
How to pay
After you process your payroll and have held back employees’ taxes, you’ll need to send them to the Idaho State Tax Commission. How frequently you pay depends on how much tax you withhold. Frequencies can be:
- Semi-monthly
- Monthly
- Quarterly
- Annually
Payments can be made electronically or by check.
How to file
Along with paying the tax, reports need to be filed.
- Form 910, Idaho Withholding Payment Voucher
- When to file:
- Each time you make a payment or
- When no payment is due because you paid no wages
- When to file:
- Form 967, Idaho Annual Withholding Report
- When to file:
- Before the last day of January for the previous year or
- When no payments were made in the previous year
- When to file:
- Form W-2, Wage and Tax Statement
- When to file:
- Before the last day of January for the previous year
- When to file:
- Form 1099-NEC, K, MISC
- When to file:
- Before the last day of February for the previous year
- When to file:
Idaho unemployment tax
All new Idaho employers pay the same standard rate for unemployment insurance for at least the first six calendar quarters. The standard rate for 2022 is 1%.
After that, employers are assigned an experience rate depending on your experience with the unemployment insurance program. Experience rates range from 0.207% to 5.40%. Each December, you’ll receive your tax rate notification.
While all wages paid to employees need to be reported to the Idaho Department of Labor, only the first $46,500 is taxable for 2022.
Employers must report and pay their unemployment taxes online.
Idaho’s Department of Labor has a helpful employer handbook covering all the details about unemployment insurance tax.
Other Idaho paycheck rules
While processing your payroll, don’t forget about these paycheck rules.
- New hire reporting
- Employers must report newly hired and rehired employees to the Idaho Department of Labor within 20 days of the date of hire.
- Minimum wage
- The minimum wage in Idaho is $7.25 per hour.
- Overtime
- Idaho follows the federal Fair Labor Standards Act when it comes to overtime. This means that most hourly employees need to be paid at least 1 ½ their hourly rate for all hours worked over 40 in a week.
- Final paychecks
- In most cases, when an employee resigns or is terminated, the final wages must be paid the sooner of:
- The next regularly scheduled payday or
- Ten days after separation
- In most cases, when an employee resigns or is terminated, the final wages must be paid the sooner of:
- Workers’ Compensation
- Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements.
If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto.Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
Federal payroll taxes in Idaho
There are some federal payroll taxes you’ll need to collect and pay.
The employee pays some. The employer pays some. And one is paid by both.
Federal withholding tax
Employees need to pay their federal tax bill throughout the year. That means you’ll need to deduct this tax from your employees’ paychecks.
How much you deduct depends on things like how much they make, their tax filing status, and their number of dependents.
It starts by getting Form W-4, Employee’s Withholding Certificate, from each employee when they start working for you. Information on this form provides crucial information to make the withholding tax calculation.
Using this information, you’ll use your employee’s pay amount and the federal tax tables to determine how much tax to take out. If you don’t want to fuss over the calculations, you can use payroll software. With just a few clicks, the computer does the math for you.
FICA – Federal Insurance Contributions Act
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. And the Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
| FICA Tax | |
| Social Security tax | 6.2% on the first $147,000 of wages in 2022 |
| Medicare tax | 1.45% on all wages |
Additional Medicare tax
In addition to the 1.45% Medicare tax that employees pay with FICA tax, some employees may need to pay an Additional Medicare tax.
The Additional Medicare tax must be withheld from any worker earning more than $200,000 per year. The tax rate is 0.9% on wages above $200,000.
FUTA – Federal unemployment tax
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but most employers only have to pay 0.6% each year.
Paying federal payroll taxes
How often you pay your federal payroll taxes depends on how much you owe.
| Federal Payroll Tax Payment Frequency | |
| Tax Type | Payment Frequency |
| FICA | Monthly, semi-weekly, or next day |
| Federal income tax withholding | Monthly, semi-weekly, or next day |
| Additional Medicare tax | Monthly, semi-weekly, or next day |
| Federal unemployment tax | Annually or quarterly |
You’ll need to file payroll reports too. There are two to know about.
- Form 941, Employer’s Quarterly Federal Tax Return
- Used for:
- FICA
- Federal income tax withholding
- Additional Medicare tax
- Used for:
- Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
- Used for:
- Federal unemployment tax
- Used for:
What’s next? Processing your payroll and paying your employees! No more mashing your head against the wall. You’ve got it figured out.
But if you prefer to have someone else keep track of the details and make sure you don’t miss any deadlines, give Gusto a try. Our teams work hard, so you don’t have to. Accuracy, timeliness, and service with a smile are what you’ll get from your dedicated payroll team leaving you with time to develop your business.
Disclaimer
The information provided by the Employer Tax Calculator is for general information and estimation. All of the taxes or fees that apply to your business may not be accounted for, or fully up to date. Gusto, Inc. (dba “Gusto”) does not promise or guarantee that the information in the Employer Tax Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct result or an indirect consequence of its use. By using the Employer Tax Calculator, you waive any rights or claims you may have against Gusto in connection with its use.