Idaho is known to outsiders for its potatoes, but you know full well that the state is a whole lot more. It’s called The Gem State for its abundance of gemstones. It’s got beautiful nature reserves that rival any other place in the world. It’s got the blue football field, the first of its kind. You love the uniqueness of Idaho, and that’s why you own a small business here. But whether you own the newest restaurant in Boise or the oldest bar in Twin Falls, there is one thing you and all other small business owners definitely don’t love: payroll taxes.
Luckily, we’re here to help. Just call us the payroll nerds. All you need to do is enter wage and W-4 information for each employee and our payroll tax calculator will calculate all the Idaho and Federal payroll taxes for you.
First and foremost, we have to take care of Uncle Sam. Our handy payroll calculator can help you figure out the federal payroll tax withholding for both your employees and your business.
Below is a quick 6-step overview of everything that goes into calculating the payroll tax for your employees. If you prefer to see a more detailed calculation, head on over to the step-by-step guide we created just for you.
For employees who earn more than $200,000 in taxable wages, you need to withhold what’s called an Additional Medicare Tax (super original, we know). The rate is 0.9%. Only the employee is responsible for paying the Additional Medicare Tax.
However, you can claim a tax credit of up to 5.4% for paying your Idaho state unemployment taxes in full and on time each quarter, which means that when everything’s said and done, you’ll only have to pay 0.6% FUTA tax. Your employees are not responsible for paying FUTA taxes.
Now that we’re done with federal income taxes, let’s tackle Idaho state taxes. The State of Idaho is on the higher end of marginal income tax rates compared to the rest of the country. It’s a progressive income tax in seven brackets that range from 1.125% to 6.925%.
As an employer, you’re responsible for paying SUI (remember, if you pay your state SUI in full and on time, you get a 90% tax credit on FUTA).
Idaho’s SUI rates range from 0.251% to 5.4%. The taxable wage base in 2019 is $40,000 for each employee.
New employers pay 1% for at least the first six quarters.
OnPay processes payroll and automates all your tax payments and filings.
You’re almost at the finish line! Once you’ve calculated your employees’ net pay by taking out the appropriate withholdings, you’re ready to cut their checks.
In addition to making sure your employees get paid on time, don’t forget to set aside the employer taxes your company is responsible for. Those FICA, FUTA, and SUI payments can add up if you don’t remit them on a regular basis.
Use Form 941 to file federal taxes quarterly. Use Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. You can find more details about employment tax due dates here.
If all that wasn’t enough, and you want to learn more about Idaho payroll taxes, here are a few websites we suggest you check out: