Idaho Hourly Paycheck and Payroll Calculator

Need help calculating paychecks? Use Gusto’s hourly paycheck calculator to determine withholdings and calculate take-home pay for your hourly employees in Idaho.

Simply enter their federal and state W-4 information as well as their pay rate, deductions and benefits, and we’ll crunch the numbers for you.

The information provided by the Paycheck Calculator provides general information regarding the calculation of taxes on wages for Idaho residents only. It is not a substitute for the advice of an accountant or other tax professional. The Paycheck Calculator may not account for every tax or fee that applies to you or your employer at any time. ZenPayroll, Inc., dba Gusto ("Gusto") does not warrant, promise or guarantee that the information in the Paycheck Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct or indirect consequence of its use. By using the Paycheck Calculator, you waive any rights or claims you may have against Gusto in connection with its use.

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
  • 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
  • Form W-2, Wage and Tax Statement
    • When to file:
      • Before the last day of January for the previous year
  • Form 1099-NEC, K, MISC 
    • When to file:
      • Before the last day of February for the previous year

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 
  • 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
  • Workers’ Compensation

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 tax6.2% on the first $147,000 of wages in 2022
Medicare tax1.45% 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 TypePayment Frequency
FICAMonthly, semi-weekly, or next day
Federal income tax withholdingMonthly, semi-weekly, or next day
Additional Medicare taxMonthly, semi-weekly, or next day
Federal unemployment taxAnnually 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
  • Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
    • Used for:
      • Federal unemployment tax

 
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.

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