Idaho Withholding laws & HR compliance analysis

Idaho Withholding: What you need to know

Idaho employers are required to deduct state income tax from paychecks of residents and nonresidents. If an employer has an employee earning income while in Idaho, the employer must have an Idaho withholding account. This applies to all employees, including agricultural, household help, and family members. If an employer chooses to voluntarily withhold Idaho income tax for an Idaho resident working outside of Idaho, the employer must have an Idaho withholding account. An “employer” is any person, business, or organization for which an individual performs any service as an employee. This includes religious, educational, charitable, and social organizations or societies, even if the organizations are exempt from paying income taxes. Employee leasing companies are responsible for withholding taxes from the wages of the leased-out employees.
For a Limited Time receive a FREE HR Report on the "Critical HR Recordkeeping”.  This exclusive special report covers hiring records, employment relationships, termination records, litigation issues, electronic information issues, tips for better recordkeeping, and a list of legal requirements.  Download Now
An “employee” is any individual who performs services for an employer when the employer has the right to control what will be done and how it will be done. This is true even when an employer chooses not to exercise its control over the employee and allows the employee freedom of action. It’s also true regardless of how payments are calculated or paid, or whether the employee works full-time or part-time. Generally, people who perform services for an employer are employees, unless they’re in business for themselves and offer the same service to others. A corporate officer who works for the corporation is considered an employee.
Withholding may be based on wage bracket withholding tables or the percentage method tables provided by the Tax Commission. Idaho now uses an Idaho allowance count on the federal W-4 line 5 to calculate withholding. The ...

Read more about Withholding