Idaho Salary Paycheck Calculator
Small business owners across Idaho have one thing in common—payroll processing takes a lot of time and money. Keeping up-to-date with the ever-changing payroll taxes and rates is no small feat.
We understand that the struggle is real. That’s why we’ve answered your most commonly asked questions about Idaho payroll taxes. We’ve also answered other nagging questions like “What’s the salary threshold in Idaho?” and “When’s Workers’ Compensation insurance necessary?”
Idaho state payroll taxes and paycheck rules
What’s the salary threshold in Idaho?
Because the state of Idaho doesn’t have its own salary threshold, it adheres to the federal salary threshold, which is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
Do new employees need to be reported to the state?
Yes, you must report new hires. Employers have 20 days from the newly hired or rehired employee’s hire date to report them to the Idaho Department of Labor.
When do Idaho employers need to have Workers’ Compensation insurance?
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.
When do final wages need to be paid?
Anytime an employee leaves, their final paycheck is due by the next regularly scheduled payday or ten days after separation, whichever is sooner.
How is Idaho’s unemployment tax calculated?
When a new business registers for an unemployment account, it’s assigned a standard tax rate. For 2022, that rate is 1% for at least the first six calendar quarters. After that, employers are assigned an experience rate that reflects their use of the unemployment insurance system. Experience rates range from 0.207% to 5.4%. The Idaho Department of Labor mails rate notices to employers each December.
Idaho’s unemployment tax is charged on the first $46,500 of each employee’s wages each year. This number, called the wage base, can change each year. Idaho requires employers to pay their taxes and file their wage reports online.
How do I know how much tax to take out of employees’ paychecks for state income taxes?
You need to get some information from your employee before you can calculate the withholding tax amount.
Have employees fill out Form ID W-4, Employee’s Withholding Allowance Certificate, when they start working for you. Information like tax filing status and the number of allowances are on this form and are needed to figure out the tax amount.
Idaho has several methods you can use to compute the withholding tax. They include:
- Percentage computation method
- Annualized wage method
- Wage bracket method
Each method uses information from Form ID W-4 and some charts and formulas to calculate the amount to be withheld. But an easier way is to use payroll software to automate the calculations for you.
How to pay
You’ll need to send the taxes you collect to the Idaho State Tax Commission. How often you need to pay depends on the amount of tax owed. Payment frequencies can be:
- Semi-monthly
- Monthly
- Quarterly
- Annually
You have the option to pay by check or online.
How to file
Payroll tax returns also 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 no wages were paid
- 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 during the last 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:
Federal payroll taxes in Idaho
How do employers know how much tax to take out for federal taxes?
It starts with getting Form W-4, Employee’s Withholding Certificate, from employees when you hire them. Information on this form is critical for making an accurate tax calculation. Using this information and the federal tax tables, you can figure out how much tax to withhold.
How is the FICA tax calculated?
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. 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, each pays | 6.2% on the first $147,000 of wages in 2022 |
| Medicare tax, each pays | 1.45% on all wages |
Who pays the Additional Medicare tax?
Some employees may need to pay the Additional Medicare tax. It depends on their tax filing status and their taxable income. As an employer, you’re responsible for withholding this tax from employees who earn more than $200,000 per year. The current tax rate is 0.9% on wages over $200,000.
Do employers need to pay federal unemployment tax if they already pay state 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.Yes, employers pay both state and federal unemployment taxes.
Federal unemployment tax is charged on the first $7,000 of each employee’s wages each year. The current tax rate is 6%, but credits are available to reduce this rate down to 0.6%.
How are federal payroll taxes paid?
When you pay your federal payroll taxes depends on how much tax 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 tax returns also.
- 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:
Remember to pay and file your payroll tax returns on time. Penalties can be assessed for delinquencies. Using a payroll provider eliminates the risk of missing deadlines. They file and pay your taxes for you, so you don’t have to worry about it.
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.