Payroll Idaho, Unique Aspects of Idaho Payroll Law and Practice

Idaho payroll has some unique aspects andEmployer's name
conditions. Some of the details and laws are setEmployers address
out in this article including information concerning:Employer's Federal Employer Identification
tax withholding and reporting; unemploymentNumber (EIN) This information must be reported
insurance taxes and reporting; wage and hourwithin 20 days of the hiring or rehiring.
laws; and child support withholding.ARTICLETheThe information can be sent as a W4 or
Idaho State Agency that oversees the collectionequivalent by mail, fax or electronically.
and reporting of State income taxes deductedThere is no penalty for a late report in Idaho.The
from payroll checks is:Idaho new hire-reporting agency can be reached
at 800-627-3880 or on the web at does not allow
State Tax Commissioncompulsory direct deposit.Idaho requires the
Income Tax Divisionfollowing information on an employee's pay
800 Park Blvd, Plaza IV, Box 36stub:itemized deductionsIdaho requires that
Boise, ID 83722employee be paid no less often than
(208) 334-7500monthly.Idaho requires that the lag time between
allows you to use the Federal W-4 form tothe end of the pay period and the payment of
calculate state income tax withholding.Not allwages to the employee not exceed fifteen
states allow salary reductions made under Sectiondays.Idaho payroll law requires that involuntarily
125 cafeteria plans or 401(k) to be treated in theterminated employees must be paid their final pay
same manner as the IRS code allows. In Idahowithin 10 working days or next regular payday
cafeteria plans are: not taxable for income taxand that voluntarily terminated employees must
calculation; not taxable for unemploymentbe paid their final pay within 10 working days or
insurance purposes. 401(k) plan deferrals are: notby the next regular payday or by mail if
taxable for income taxes; taxable foremployee requests it.There is no provision in
unemployment purposes.In Idaho supplementalIdaho law concerning paying deceased
wages are taxed at a 7.8% flat rate.In Idahoemployees.Escheat laws in Idaho require that
supplemental wages are required to beunclaimed wages be paid over to the state after
aggregated for the state income tax withholdingone year.The employer is further required in Idaho
calculation.You must file your Idaho state W-2s byto keep a record of the wages abandoned and
magnetic media if you are have at least 50turned over to the state for a period of 7
employees and are required to file your federalyears.Idaho payroll law mandates no more than
W-2s by magnetic media.The Idaho State35% of minimum wage may be used as a tip
Unemployment Insurance Agency is:Departmentcredit.In the Idaho payroll law there is no provision
of Employmentcovering required rest or meal periods.Idaho
317 Main St.statute requires that wage and hour records be
Boise, ID 83735-0910kept for a period of not less than three years.
(208) 332-7451These records will normally consist of at least the
State of Idaho taxable wage base forinformation required under FLSA.The Idaho
unemployment purposes is wages up toagency charged with enforcing Child Support
$27,600.00.Idaho requires Magnetic mediaOrders and laws is:Child Support Program
reporting of quarterly wage reporting if theDepartment of Health and Welfare
employer has at least 300 employees that they450 W. State St., 5th Fl.
are reporting that quarter.Unemployment recordsBoise, ID 83720-0036
must be retained in Idaho for a minimum period(208) 334-2479
of three years. This information generally includes:has the following provisions for child support
name; social security number; dates of hire, rehiredeductions:When to start Withholding?
and termination; wages by period; payroll payImmediately after receipt of order.
periods and pay dates; date and circumstances ofWhen to send Payment? Within 7 days of
termination.The Idaho State Agency charged withPayday.
enforcing the state wage and hour lawsWhen to send Termination Notice? Promptly.
is:Department of LaborMaximum Administrative Fee? $5 per payment.
317 Main St.Withholding Limits? 50% of disposable earnings.
Boise, ID 83735-0910Please note that this article is not updated for
(208) 332-7451changes that can and will happen from time to
minimum wage in Idaho is $5.15 per hour.There istime.Charles J. Read, CPA has been in the payroll,
also no general provision in Idaho State Lawaccounting and tax business for 30 years, the last
covering paying overtime in a non-FLSA coveredfifteen in private practice. Mr. Read is the author
employer.Idaho State new hire reportingof "How to Start a New Business".For Professional
requirements are that every employer mustPayroll services at a Budget Price go to a
report every new hire and rehire. The employerPaperless Payroll Company.Go to For a full service
must report the federally required elementspayroll service bureau with CPA's on staff.See an
of:Employee's nameexcerpt of Mr. Read's interviews from William
Employee's addressShatners "Heartbeat of America" television show
Employee's social security numberon the websites linked above.