Idaho Payroll Instructions

Calculation of Idaho income tax withholding uses a 'step' table similar to the federal tax tables. The state payroll withholding formulas changed again for 2023, with 1 fewer step and lower rates at the top. Idaho tax tables have changed 19 times in the past 33 years.

NOTE: It appears that Idaho will move to a flat income tax, later in 2023. Info about it is not yet on their website.

HINT: TurtleSoft provides free annual updates for US federal and Idaho tax withholding rates.

Idaho State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Open the Payroll tab on the left, and choose Employees.
  2. Locate the employee's record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Idaho dependents into the State Exemptions field.
  7. Enter an Idaho Tax Package into the Tax Package field, based on the employee’s W4 form. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. HINT: If you don't see Idaho packages in the list, you'll need to import 2022 tax info first.
  8. Click OK

Idaho State Unemployment Tax Instructions

In 2024, the Idaho SUTA tax (unemployment insurance) applies to the first $50,000 in wages for each employee (up from $46,500 last year). The base rate for new companies is 1.0%. After six quarters, the rate is adjusted based on prior UI claims.

To enter your Idaho state SUTA tax rate into Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open the Idaho SUTA item HINT: If you don't see Idaho SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter the percentage rate for your business into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Idaho Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

State Tax Contacts

Website

Little Known Idaho Tax Facts

Thanks to the Panhandle Prosperity Act of 1987, residents of the Idaho panhandle may purchase goods tax-free from businesses located in the Texas, Florida and Oklahoma panhandles.

Official State Lawn Ornament

Whooping crane.