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Summary of differences between federal and state regulations
Income tax withholding
When an employee earns income while working in Idaho, the income is subject to Idaho income tax. This is true even if the employee is not a resident of Idaho. It is also true if the employee is a family member. It also applies to people working in Idaho for only one day, including athletes and performers.
All wages, tips, and other compensation earned by employees or paid for services performed in Idaho are subject to Idaho income tax withholding. The pay may be in cash or in another form. It includes salaries, vacation allowances, bonuses, commissions, and fringe benefits. It does not matter how you measure the compensation or make the payment. Generally, if the Idaho compensation is subject to federal income tax, it is subject to Idaho income tax as well.
If a person who is not a citizen of the United States earns income while in Idaho, the income is subject to Idaho income tax withholding unless exempt from federal withholding.
In Idaho, an employer is any person, business, or organization for whom 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.
Generally, an employee is any individual who performs services for you, when you have the right to control what will be done and how it will be done. This is true even when you choose not to exercise your control over the employee and allow the employee freedom of action. It is also true regardless of how payments are measured or paid or whether the employee works full-time or part-time.
If an employer/employee relationship exists, it does not matter what the relationship is called. Generally, if someone performs services for you, he is an employee unless he is in business for himself and offers the same service to others.
A corporate officer who works for the corporation is an employee.
Unemployment taxes
All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.
Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.
Wages subject to unemployment tax in this state equal $27,600.
Minimum and maximum rates in this state are 0.2 and 5.4 %. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.
State
Contacts
Income tax withholding
State Tax Commission
Unemployment taxes
Department of Labor
Regulations
Income tax withholding
Idaho Administrative Rule 35, Title 01, Chapter 01
Federal
ContactsInternal Revenue Service
Regulations Title 26 Code of Federal Regulations, Internal Revenue