Income Tax Withholding

You must have an Idaho withholding account number if you have one or more full or part-time employees in Idaho and the IRS requires you to issue W-2 Wage and Tax Statements. This applies to all employers, including agricultural and domestic employers. An out-of-state employer who has no employees working in Idaho can voluntarily withhold Idaho income tax for an employee with an Idaho filing requirement. However, the employer must have an Idaho account and pay the withheld tax on time.

Apply for an account

To apply for an Idaho withholding account, complete and submit the IBR online. You should receive your account number in about 10 days.

When completing the application, use the same employer name and federal Employer Identification Number (EIN) you'll use to prepare your employees' W-2s.

The Idaho withholding account number is not transferable. If your EIN or business entity type changes, you must complete a new application.

Forms/publications

• Guide to Income Tax Withholding
• Form 910 Instructions
• Form 967 Instructions
• Substitute Forms Specifications
• Record of Idaho Withholding Payments worksheet
• Due Dates for Sales/Use, Sales-related, and Withholding Accounts
• Form 96, Idaho Annual Information Return
• Full list of income tax withholding tax forms and all required schedules »

Note: Forms 910 and 967 are personalized and aren't available online. Please read the notice at the top of our forms search page.

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Withholding filing requirements

Idaho income tax law (Idaho Code section 63- 3035) dictates whether you must file your income tax withholding payments monthly, semimonthly, quarterly, or annually. Regardless of your filing cycle, the process is the same. Here's how to file:

• You can file electronically from our website, or by paper using the Form 910, Idaho Withholding Payment Voucher. See our Instructions for Form 910.
• You must also file a Form 967, Idaho Annual Withholding Report. You use this form to report the income tax you withheld, reconcile your payments made during the year with the actual amount of tax you withheld, and submit your W-2 and/or 1099 forms containing Idaho withholding. See our Instructions for Form 967.

Form 967 is due by the last day of February,* whether you file it electronically or by paper. Be sure the total Idaho tax withheld that you report on Form 967 matches the total Idaho income tax withheld on your employees' W-2 and 1099 forms. *If the due date falls on a weekend or state holiday, Form 967 is due on the next business day.

For more information about when your payment is due, see our Guide to Idaho Income Tax Withholding or consult the due date chart in this publication, Due Dates for Sales, Use, Sales-related, and Withholding Accounts.

Making your withholding payments

Electronic payments

You can pay by credit/debit card, e-check, or Electronic Funds Transfer (EFT) through our website's E-pay page. You don't need to file a Form 910 if you pay by EFT (ACH Debit or Credit), e-check, or credit/debit card. Be sure to choose the correct tax period corresponding with your filing cycle when you pay online.

If you pay with a credit/debit card or e-check, our third-party provider will charge a convenience fee. (These fees are not initiated or collected by the Idaho State Tax Commission.)

Cash, check, or money order payments

Use the Form 910 to make your payment if you're paying by cash, check, or money order. Be sure to sign your Form 910 before submitting it.

You must track your payments by your filing cycle period. Here's a chart of the due dates for sales and withholding.

Reporting "zero" withholding

Even if you don't have a payroll or employee withholding during a reporting period, you're still required to file a "zero" payment. You can report "zero" withholding online or complete Form 910 if you're filing by paper.

Don't send a paper Form 910 if you report your "zero" withholding online.

Determining withholding tax periods

To determine your correct withholding tax period for EFT, credit/debit card, e-check, or Form 910 payment, refer to the following charts in A Guide to Idaho Income Tax Withholding:

• Payment Due Date Tables
• Monthly Tax Period Chart
• Semimonthly Tax Period Chart
• Quarterly Tax Period Chart

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Filing Form 967, W-2s, 1099s and other information returns

Form 967, W-2s, 1099s and other information returns are due by the last day of February* whether you file electronically or by paper. For help in reconciling your income tax withholding, see A Guide to Idaho Income Tax Withholding.

To file online (W-2s with Form 967)

You can file your W-2s with Form 967 online. You can either enter the W-2 detail online or upload a file. If you choose a file upload, the specifications are available on our Tax Preparers page. Idaho requires electronic filing of W-2 forms for employers who meet the IRS requirements to file and have 50 or more employees working in Idaho.

To file online (1099s and other information returns)

You can file 1099s and other information returns online. If you withheld Idaho income tax, you must include Form 967 in your uploaded file.

Contact us by email or phone if you need help e-filing.

To file by paper

Complete your Form 967, attach paper W-2s and any 1099s with Idaho income tax withholding to the form. Please make sure all copies of employees' W-2s and 1099s are legible, especially any carbon copies. Mail forms to: Idaho State Tax Commission, PO Box 76, Boise ID 83707-0076.

If your 1099s don't have Idaho income tax withholding, attach the information returns to Idaho Form 96 or a copy of federal Form 1096 and mail them to: Idaho State Tax Commission, PO Box 36, Boise ID 83722-0410.

*If the due date falls on a weekend or state holiday, Form 967 is due on the next business day.

Completing W-2 forms

The Idaho State Tax Commission reconciles employer W-2 information with the W-2s filed by employees. Many errors occur that can be easily avoided. Following the tips below will help employers and tax preparers reduce the chance of receiving a letter or phone call from us and will speed up the processing of tax refunds for employees and clients.

• Complete all required fields
• Use the correct Employer Identification Number (EIN) – Use the EIN that the IRS issued you. If you're a service provider, use the EINs issued to your clients.
• Use the correct state account number – For Idaho, this is a 9-digit number that the Tax Commission issued you.
• Make sure all W-2 copies are legible.
• Use the correct W-2 for the reporting year.
• File Form 967 with your W-2s.
• If you file your W-2s electronically, don't send us a paper copy.

See the sample W-2 in the "Form W-2" section of A Guide to Idaho Income Tax Withholding.

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Idaho residents working in other states

If you're an employer and your employee is an Idaho resident but is working in another state, you generally don't have to withhold Idaho income tax. Instead, you should withhold tax for the state in which the employee is working. You should contact that state to be sure of its withholding tax laws.

If the other state doesn't require withholding, Idaho tax can be withheld if both you and your employee agree.

Out-of-state companies and withholding Idaho income tax

Out-of-state employers must withhold Idaho income tax if they have an employee who's physically working in Idaho. If the employee is a nonresident and earns more than $1,000 in Idaho in one year, the employer is required to withhold Idaho income tax. The employer must have a permit and report the wages to Idaho. If the employee isn't a resident of Idaho and earns gross income of more than $2,500 from Idaho sources, the employee must file an Idaho income tax return. For more information, see A Guide to Idaho Income Tax Withholding.

If the employee isn't physically working in Idaho, the employer doesn't have to withhold Idaho income tax. However, if the employee lives in Idaho and wants to have Idaho income tax withheld, the employer can get a permit and withhold as a convenience to the employee.

Exceptions to the withholding requirement

An Idaho employer is always required to have an account and report payroll. However, withholding isn't required in some cases. Also, there are special allowances for certain motor carriers, air carriers, railroad carriers, and water carriers. For detailed information, see the "Are there exceptions to the withholding requirement?" in A Guide to Idaho Income Tax Withholding.

Idaho employees can use additional W-4 for separate state withholdings

Since Idaho doesn't have its own Employee's Withholding Allowance Certificate (Form W-4), Idaho employees can use an additional W-4 for Idaho withholdings, as long as they write "Idaho" across the top of it for their employer. Idaho employee allowances can be equal to or less than the federal allowances. If the state allowances are less, Idaho employees can either note that on their one W-4 or use a separate one marked as their state copy.

Making changes to your withholding account

To change your business name, mailing address, or cancel your account, use the self-service request form.

For detailed information on other ways you can make changes to your withholding account, see A Guide to Idaho Income Tax Withholding.

Developing your own withholding forms

If you'd like to develop your own substitute withholding forms, our Substitute Forms Specifications contain all the information you'll need to create substitute forms and get them approved. If you need more help, please contact the substitute forms help desk.

Laws and rules

• Income Tax Withholding Law Chapter 30: 63-3035 State withholding tax on percentage basis -- Withholding, collection and payment of tax.
• Income Tax Withholding Law Chapter 30: 63-3036 State withholding tax for farmers.
• Income Tax Withholding Law Chapter 30: 63-3037 Information returns.
• Income Tax Withholding Rules [PDF] (Rule 830) Information returns.
• Income Tax Withholding Rules [PDF] (Rule 870) Requirements of an Idaho withholding account number.
• Any proposed or temporary rules can be seen through this page.

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Last updated Jan. 8, 2015