Idaho New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Your business will need to have an Employer Identification Number (also known as an EIN or FEIN), if you do not already have one.
- The simplest 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, “Your Step-by-step Guide on How to Apply for EIN”.
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
- To find out more about 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 2023 which includes the following:
- UI (SUTA) rate: 0.8%
- Admin Rate: 0.17%
- Workforce Rate: 0.03%
These rates will be entered separately 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:
- Fill out the required Form I-9. This is a two-part form to be filled out by employee and employer.
- For more information, read our help article, “Form I-9 In a Nutshell”.
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate for federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”.
- Have employees fill out Form ID W-4 Idaho Employee’s Withholding Allowance Certificate for Idaho state income taxes.
- Employers are required by law to report new employees within 20 days from the date of hire or rehire.
- You can report your new employees online through Idaho’s New Hire Directory.
- For more information, read, “What Is New Hire Reporting?”
- 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!
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