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Article #228: Payroll Idaho, Unique Aspects of Idaho Payroll Law and Practice

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The Idaho State Agency that oversees the Idaho.
collection and reporting of State income The Idaho new hire-reporting agency can
taxes deducted from payroll checks is: be reached at 800-627-3880 or on the web
State Tax Commission at
Income Tax Division Idaho does not allow compulsory direct
800 Park Blvd, Plaza IV, Box 36 deposit.
Boise, ID 83722 Idaho requires the following information
(208) 334-7500 on an employee's pay stub:itemized
Idaho allows you to use the Federal W-4 deductions
form to calculate state income tax Idaho requires that employee be paid no
withholding. less often than monthly.
Not all states allow salary reductions Idaho requires that the lag time between
made under Section 125 cafeteria plans or the end of the pay period and the payment
401(k) to be treated in the same manner of wages to the employee not exceed
as the IRS code allows. In Idaho fifteen days.
cafeteria plans are: not taxable for Idaho payroll law requires that
income tax calculation; not taxable for involuntarily terminated employees must
unemployment insurance purposes. 401(k) be paid their final pay within 10 working
plan deferrals are: not taxable for days or next regular payday and that
income taxes; taxable for unemployment voluntarily terminated employees must be
purposes. paid their final pay within 10 working
In Idaho supplemental wages are taxed at days or by the next regular payday or by
a 7.8% flat rate. mail if employee requests it.
In Idaho supplemental wages are required There is no provision in Idaho law
to be aggregated for the state income tax concerning paying deceased employees.
withholding calculation. Escheat laws in Idaho require that
You must file your Idaho state W-2s by unclaimed wages be paid over to the state
magnetic media if you are have at least after one year.
50 employees and are required to file The employer is further required in Idaho
your federal W-2s by magnetic media. to keep a record of the wages abandoned
The Idaho State Unemployment Insurance and turned over to the state for a period
Agency is: of 7 years.
Department of Employment Idaho payroll law mandates no more than
317 Main St. 35% of minimum wage may be used as a tip
Boise, ID 83735-0910 credit.
(208) 332-7451 In the Idaho payroll law there is no
The State of Idaho taxable wage base for provision covering required rest or meal
unemployment purposes is wages up to periods.
$27,600.00. Idaho statute requires that wage and hour
Idaho requires Magnetic media reporting records be kept for a period of not less
of quarterly wage reporting if the than three years. These records will
employer has at least 300 employees that normally consist of at least the
they are reporting that quarter. information required under FLSA.
Unemployment records must be retained in The Idaho agency charged with enforcing
Idaho for a minimum period of three Child Support Orders and laws is:
years. This information generally Child Support Program
includes: name; social security number; Department of Health and Welfare
dates of hire, rehire and termination; 450 W. State St., 5th Fl.
wages by period; payroll pay periods and Boise, ID 83720-0036
pay dates; date and circumstances of (208) 334-2479
termination. Idaho has the following provisions for
The Idaho State Agency charged with child support deductions:
enforcing the state wage and hour laws When to start Withholding? Immediately
is: after receipt of order.
Department of Labor When to send Payment? Within 7 days of
317 Main St. Payday.
Boise, ID 83735-0910 When to send Termination Notice?
(208) 332-7451 Promptly.
The minimum wage in Idaho is $5.15 per Maximum Administrative Fee? $5 per
hour. payment.
There is also no general provision in Withholding Limits? 50% of disposable
Idaho State Law covering paying overtime earnings.
in a non-FLSA covered employer. Please note that this article is not
Idaho State new hire reporting updated for changes that can and will
requirements are that every employer must happen from time to time.
report every new hire and rehire. The Charles J. Read, CPA has been in the
employer must report the federally payroll, accounting and tax business for
required elements of: 30 years, the last fifteen in private
Employee's name practice.
Employee's address Mr. Read is the author of "How to Start a
Employee's social security number New Business."
Employer's name To find professional payroll service at a
Employers address budget price go to a paperless payroll
Employer's Federal Employer company.
Identification Number (EIN) For a full service payroll bureau with
This information must be reported within CPA's on staff visit .
20 days of the hiring or rehiring. See an excerpt of Mr. Read's interviews
The information can be sent as a W4 or from William Shatners "Heartbeat of
equivalent by mail, fax or America" television show on the web sites
electronically. linked above.
There is no penalty for a late report in






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