Idaho Payroll Tax Registration

If you are an employer in Idaho who has recently hired an employee, you will need to register for payroll taxes with the Idaho State Tax Commission. This registration process ensures that you are compliant with state tax laws and can properly withhold and remit taxes on behalf of your employees.

How Idaho Payroll Registration Works

There are 2 payroll tax setup tasks you may need to complete in Idaho to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Idaho agencies or use Mosey to do it.

Idaho Unemployment Insurance Setup for LLP, Corporation, LLC

You are required to register for Unemployment Insurance with the Idaho Department of Labor when you have paid $1500 or more in wages during a calendar quarter, or at least one Idaho-employee working for any part of the week for 20 or more different weeks during a calendar year. When registering a new business you can also register for income tax withholding at the same time. Note: Nonprofits recognized as 501(c)(3) by the IRS have the choice to either pay unemployment contributions on taxable wages each quarter or elect to reimburse the Idaho Department of Labor Unemployment Fund for benefits paid to terminated employees.

1. Create an Idaho Business Registration System Account
   

   Before submitting or updating your Idaho Business Registration, create an Idaho Business Registration System account if you haven't already done so. This is used to save progress in an existing application and add additional accounts later.

2. Submit Unemployment Insurance Registration Online
   

   Register as a new business and request an Unemployment Insurance account online by selecting "New Applicant" under "Purpose of Registration." Once you complete the form, you will see the list of permits and accounts needed, which will be requested when you submit the form.

3. Make Tax Payment Method Election (Nonprofits Only)
   

   If you are a 501(c)(3) nonprofit organization, the Idaho Department of Labor will mail confirmation of your Unemployment Insurance account setup with a blank form to make your unemployment payment method election. Follow the instructions to complete and mail the form back to the Idaho Department of Labor.

4. Configure Payroll with Your Unemployment Insurance Account
   

   Submit your Unemployment Insurance Number and contribution rate (or reimbursable status as a nonprofit) to your payroll provider in order to file and remit taxes properly.

Idaho Withholding Tax Setup for LLC, Corporation, LLP

If you plan to hire employees in Idaho, you are required to register with the Idaho State Tax Commission for a withholding tax account. Note: When registering a new business you can also register for Unemployment Insurance at the same time.

1. Create an Idaho Business Registration System Account
   

   Before submitting or updating an Idaho Business Registration, create an Idaho Business Registration System account if you haven't already done so. This is used to save progress in an existing application and add additional accounts later.

2. Submit the Idaho Business Registration Form
   

   Register as a new business and request a Withholding Account Number online by selecting "New Applicant" under "Purpose of Registration." Once you complete the form, you will see the list of permits and accounts needed, which will be requested when you submit the form.

3. Create an Idaho TAP Account
   

   Create an Idaho Taxpayer Access Point account if you haven't already done so. Payments for most taxes in Idaho can be made electronically using Idaho Taxpayer Access Point.

4. Configure Payroll with Your Withholding Account Number
   

   Your payroll provider needs your withholding account number and deposit schedule to remit taxes properly.

Idaho's Payroll Registration Agencies

• Idaho Department of Labor
• Idaho State Tax Commission