Idaho New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an Employer Identification Number (also known as an EIN or FEIN), if you do not already have one. The most convenient way is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for EINs, read our help article, “How to apply for an EIN”.
- Although it is not mandatory, we recommend creating an account with the EFTPS. You can easily register online. You will need to have this account to make tax payments online, or view whatever payroll tax filings have been made on your behalf by Patriot.
- To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of Idaho Tax Accounts:
- You can easily register online with the Idaho Business Registration System.
- By registering with the Idaho Business Registration System, you can apply for both the state income tax (SIT) for payroll withholding and your state unemployment insurance (SUI) tax account for your business.
- Idaho’s new employers use the “standard” state unemployment tax rate for 2021 which includes the following:
- UI (SUTA) rate: 0.97%
- Admin Rate: 0.0%
- Workforce Rate: 0.03%
These rates will be entered in seperately in Patriot Software.
- You will be given a new unemployment (UI) rate, Admin rate, and Workforce rate every year determined by the Idaho Department of Labor and based on your industry and experience. Visit the Idaho Department of Labor for more information.
- To learn more, read, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate. This will be used for both federal and Idaho income taxes. For state income tax, employees must fill out Form ID W-4.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Idaho employers follow the federal minimum wage rate of $7.25 per hour.
- You need to display the federal minimum wage poster for your employees where they can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will be required to keep employee payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!