Like every other state in the country, Idaho has a unique set of payroll taxes that companies are required to pay. These payroll taxes are typically used to pay for a range of governmental services and programs, including infrastructure, healthcare, and education. It’s critical to comprehend the payroll taxes you must pay as an employer in Idaho and how to do so.
State unemployment tax (SUTA) is one of the main payroll taxes that employers in Idaho are required to pay. Employees who lose their jobs through no fault of their own are paid unemployment compensation with the money raised by this levy. The history of layoffs by the business and the total amount of salaries paid to employees during the course of the year are used to determine the SUTA tax rate. Employers are obliged to report and pay their SUTA taxes to the Idaho Department of Labor on a quarterly basis.
State income tax withholding is an additional payroll tax that Idaho employers are required to pay. The business deducts this fee from workers’ paychecks and sends it to the Idaho State Tax Commission. Based on the employee’s salary and the number of exemptions they claim on their W-4 form, the amount of state income tax that needs to be withheld is calculated.
Employers in Idaho must additionally pay federal payroll taxes, such as Social Security and Medicare taxes, in addition to these payroll taxes. Employers deduct these taxes from employees’ paychecks and send them to the federal government. The amount of Social Security and Medicare taxes that must be deducted is determined annually by the federal government and is based on the employee’s income.
How do you withhold and pay your Idaho state income tax then? Employers in Idaho must electronically submit and pay their state income tax withholding via the website of the Idaho State Tax Commission. Employers might also decide to handle their payroll taxes by using a third-party payroll service provider.
In conclusion, employers in Idaho are required to pay a number of payroll taxes, such as the federal payroll tax, the state unemployment tax, and the state income tax withholding. To maintain compliance with local, state, and federal laws, it is crucial to comprehend these taxes and how to pay them. Employers who have questions about their unique payroll tax requirements should speak with a tax expert or the Idaho State Tax Commission.