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Idaho Payroll Services Information

Payroll Express, an Idaho payroll services company, takes care of employee paychecks and federal and Idaho state mandated payroll taxes.

Payroll Express has specific regulations associated to Idaho payroll services that with which business owners who hire employees must comply. Idaho Payroll law covers several area, including: aying and reporting certain types of payroll insurances, taxes and withholding, but it is not limited to only these areas. Insurances, like Idaho State Unemployment Insurance, Idaho Workers compensation Insurance, and Idaho payroll withholding tax, are counted.

Employers, including those covered by Idaho’s wage payment law, are required to pay wages no more than 15 days after the end of a pay period. They must also pay their employees at least once per calendar month. If a normal payday lands on a non-workday, the employer is required to give the employee the wages on the workday preceding the non-workday. Wages can be paid by checks from banks with previous arrangements to not charge employees a fee for cashing the check or by cash. Only with an employee’s discretion can an employer deposit wages directly to a financial institution.

As stated by the Wage and Hour Division of the Idaho Department of Commerce and Labor, employees can be paid with payroll debit cards, as long as the employees are not charged, they volunteer to be paid by debit card, and they are able to withdraw from the plan and gain paper checks at any time. Concerning payroll debit cards, there are no rules or state laws. For more information regarding Idaho Payroll, visit the Idaho State Department of Labor.

Idaho Payroll Wages and Compensation

Previous to July 24, 2009, the minimum wage was $6.55 per hour. Now, the minimum wage is $7.25 per hour. Minimum wage determinations have commissions incorporated. For employees younger than 20 years old, they can be paid $4.25 per hour for the first 90 consecutive calendar days they are employed. Minimum wage modifies with the federal minimum wage. Decreasing an employee’s hours, benefits, or wages in order to hire someone else at the subminimum wage is not allowed. Employees with disabilities can be paid less than minimum wage if the employee has a license from the Department of Commerce and Labor. Learners or apprentices may be given a unique license allowing payment lower than minimum wage for a time and if conditions made by the department are met. For employers hiring employees who make tips and gratuities, employees must be paid at least $3.35 per hour. If tips and gratuities do not make up for the difference of normal minimum wage the employee must make up for it. Shared tips may not be accounted for to the minimum wage. For employers offering meals and lodging, it is possible to apply a credit for the decent price of providing an employee(s) with lodging, other facilities, or board. For more information regarding Idaho Payroll Wages and compensation visit Idaho State Legislature.

Idaho Payroll State Income Tax

Corporations, partnerships, trusts, estates, associations, educational organizations, social organizations, religious organizations, charitable organizations/societies, other organizations, joint ventures, or an individual can be an employer. For state withholding dealings, employers who are exempt from federal withholding or tax exempt organizations, even farmers, are known as employers. Whomever an employee performs services for is an employer. Employers settling wages dealing with federal withholding have to withhold Idaho income tax from payments that are taxable, gained in Idaho, and by covered employees; location of  payment does not matter.

Any non-resident or resident employee providing services for someone in a legal relationship of employee and employer is considered a covered employee. In most cases, a person providing services to the control and will of an employer for the intention of withholding is considered an employee. Grades or classes of employees, administrators, executive personnel, and corporate officers have no distinction between them, and it matters not if they are full or part time employees. If there is a relationship between an employee and employer, the employee can be called an agent, partner, or independent contractor. For more information regarding Idaho Payroll Withholding Tax, visit Idaho State Tax Commission.

Idaho Payroll State Unemployment Tax

The Idaho Employment Security Law deems it necessary that many Idaho employers supply to the state unemployment insurance fund. Based on claim histories, employers are evaluated on unemployment insurance taxes. Employees have no liability when it comes to taxes; taxes are only evaluated towards employers. Employers must cancel unemployment insurance taxes, retain specific records associated with employment backgrounds, and offer specifically related accounts suggested agenda. In order to be considered for unemployment insurance benefits, unemployed worker must meet particular specifications. This law is relevant to all employers protected by the Federal Unemployment Tax Act (FUTA) and to employers in Idaho that meet the following requirements:

  • Pay wages of at least $1,500 or more during a calendar quarter
  • Employ at least one worker for some part of a day in each of 20 different weeks in a calendar year
  • Acquire the business or part of the business of an employer subject to unemployment taxes
  • Pay agricultural workers at least $20,000 cash wages in a calendar quarter, or employ at least 10 agricultural workers for some part of a day in 20 different weeks in a calendar year
  • Operate as a nonprofit organization exempt from federal income tax (religious, charitable, educational, or other type of work)

More information about Idaho Payroll State Unemployment Tax can be found at Idaho State Department of Labor.

Idaho Payroll State Workers Compensation Insurance

The Idaho Industrial Commission supervises worker's compensation laws in Idaho. The state-run worker's compensation program is called the State Insurance Fund. It is permitted for private insurance carriers to supply workers with workers compensation insurance. Unless excused from law, employers with a minimum of one employee are compelled to have a worker's compensation policy put in place before an employee(s) is hired. Some areas that might be excused from mandatory coverage include: household domestic work, employing family members residing in the home (affects sole proprietorships), owners of sole proprietorship, employees of a limited liability company, corporate officers who are directors — if there is a board of directors owning at minimum 10% of the stock — unpaid ski patrollers, employment that is protected by Federal Workers Compensation Laws, agricultural dusting and spraying plane pilots. For more information regarding Payroll workers compensation insurance vising Idaho State Industrial Commission.

If you have any further questions about our Idaho payroll services, please contact us today!