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INCOME TAX WITHHOLDING (ITW)

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ITW - 1	Do I need an Idaho withholding account number? 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. For more information see A Guide to Idaho Income Tax Withholding. Ref:   Idaho Code Sections 63-3035 and 63-3036 Ref:   Idaho Income Tax Administrative Rule 870 Contact us if you need more information. Return to Questions
ITW - 2	How do I get a withholding account number? To apply for an Idaho withholding account, register online at business.idaho.gov or complete the IBR-1 (Idaho Business Registration Form), which you can also get from any Tax Commission office. When completing the application, use the same employer name and federal employer identification number (EIN) you will use to prepare your employees' W-2s. The Idaho withholding account number is not transferable. If your EIN changes, you must complete a new application. If your business name changes, please notify the Tax Commission. Contact us if you need more information. Return to Questions
ITW - 3	If I have an employee who is an Idaho resident, but is working in another state, do I need to withhold Idaho income tax? No. Generally, 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. Contact us if you need more information. Return to Questions
ITW - 4	Is a company in another state required to withhold Idaho income tax from an employee working in Idaho? The employer must withhold Idaho income tax if the employee is 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 is not a resident of Idaho and earns gross income of more than $2,500 from Idaho sources, he is required to 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. Contact us if you need more information. Return to Questions
ITW - 5	Where do I find a copy of the Idaho Employee's Withholding Allowance Certificate? Idaho doesn't have its own Employee's Withholding Allowance Certificate. Use the federal Form W-4 for Idaho employees. Employee allowances can be equal to, or less than the federal. If the state allowances are less, you can note that on the federal W-4 or use another federal W-4 and identify it as the state copy. Contact us if you need more information. Return to Questions
ITW - 7	What are my withholding filing requirements? Monthly filers: Make monthly income tax withholding payments either electronically from our Web site or by using the Form 910, Idaho Withholding Payment Voucher. You must use Form 967, Idaho Annual Withholding Report, to report the income tax you withheld, reconcile your 12 payments with the actual amount of tax you withheld, and submit your W-2 and 1099 forms. Form 967 is due* by the last day of February if you file it by paper. It’s due by March 31 if you file electronically. Be sure the total tax withheld that you report on Form 967 matches the total Idaho income tax withheld on your employees' W-2 forms. Split-Monthly filers: Make split-monthly income tax withholding payments either electronically from our Web site or by using the Form 910, Idaho Withholding Payment Voucher. You must use Form 967 to report the income tax you withheld, reconcile your 12 payments with the actual amount of tax you withheld, and submit your W-2 and 1099 forms. Form 967 is due* by the last day of February if you file it by paper. It’s due by March 31 if you file electronically. Be sure the total tax withheld that you report on Form 967 matches the total Idaho income tax withheld on your employees' W-2 forms. Quarterly filers: Make quarterly income tax withholding payments either electronically from our Web site or by using the Form 910, Idaho Withholding Payment Voucher. You must use Form 967 to report the income tax you withheld, reconcile your four payments with the actual amount of tax you withheld, and submit your W-2 and 1099 forms. Form 967 is due* by the last day of February if you file it by paper. It’s due by March 31 if you file electronically. Be sure the total tax withheld that you report on Form 967 matches the total Idaho income tax withheld on your employees' W-2 forms. Annual filers: Make your annual income tax withholding payment either electronically from our Web site or by using the Form 910, Idaho Withholding Voucher. You must use Form 967 to report the income tax you withheld, reconcile any payments you made with the actual amount of tax you withheld, and submit your W-2 and 1099 forms. Form 967 is due* by the last day of February if you file it by paper. It’s due by March 31 if you file electronically. Be sure the total tax withheld that you report on Form 967 matches the total Idaho income tax withheld on your employees’ W-2 forms. *If the due date falls on a weekend or state holiday, Form 967 is due on the next business day. Contact us if you need more information. Return to Questions
ITW - 8	How do I make my income tax withholding payments? 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. Electronic Payments: You can pay by credit/debit card, e-check, or Electronic Funds Transfer (EFT) through our Web site's Electronic Payments 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. A convenience fee is added to all credit/debit card and e-check tax payments. The fee is 3% of each credit/debit card transaction and $5 for each e-check payment. Access Idaho, a third-party vendor, collects the fee. Contact us if you need more information. Return to Questions
ITW - 9	How do I determine my correct withholding tax period for EFT, credit/debit card, e-check, or Form 910 payments? Use the following charts to determine your withholding tax period for payments based on your filing cycle: Monthly Withholding Reporting Period Payment Due Date EFT Tax Period (MM) Credit/Debit Card, E-check Period End Date Tax Period on Form 910 January 1 - January 31 February 20 01  1/31 Jan February 1 - February 28 March 20 02  2/28 Feb March 1 - March 31 April 20 03  3/31 Mar April 1 - April 30 May 20 04  4/30 Apr May 1 - May 31 June 20 05  5/31 May June 1 - June 30 July 20 06  6/30 Jun July 1 - July 31 August 20 07  7/31 Jul August 1 - August 31 September 20 08  8/31 Aug September 1 - September 30 October 20 09  9/30 Sep October 1 - October 31 November 20 10 10/31 Oct November 1 - November 30 December 20 11 11/30 Nov December 1 - December 31 January 20 12 12/31 Dec Split-monthly Withholding Reporting Period Payment Due Date EFT Tax Period (MM) Credit/Debit Card, E-check Period End Date Tax Period on Form 910 January 16 - February 15 February 20 01  2/15 Jan February 16 - March 15 March 20 02 3/15 Feb March 16 - April 15 April 20 03 4/15 Mar April 16 - May 15 May 20 04  5/15 Apr May 16 - June 15 June 20 05  6/15 May June 16 - July 15 July 20 06  7/15 Jun July 16 - August 15 August 20 07 8/15 Jul August 16 - September 15 September 20 08  9/15 Aug September 16 - October 15 October 20 09 10/15 Sep October 16 - November 15 November 20 10 11/15 Oct November 16 - December 15 December 20 11 12/15 Nov December 16 - January 15 January 20 12  1/15 Dec Quarterly Withholding Reporting Period Payment Due Date EFT Tax Period (MM) Credit/Debit Card, E-check Period End Date Tax Period on Form 910 January 1 - March 31 April 30 03  3/31 Mar April 1 - June 30 July 31 06  6/30 Jun July 1 - September 30 October 31 09 9/30 Sep October 1 - December 31 January 31 12 12/31 Dec Contact us if you need more information. Return to Questions
ITW - 10	Do I need to file a report if I don't withhold taxes in a reporting period? Yes. If you don't have a payroll or employee withholding during a reporting period, you must report "zero" withholding on the Form 910, or online through our Web site. If you report your "zero" withholding online, don't send a Form 910. Contact us if you need more information. Return to Questions
ITW - 11	How do I reconcile my withholding payments You must use Form 967, Idaho Annual Withholding Report, to reconcile your payments annually with the actual amount of tax you withheld. Form 967 is due* by the last day of February if you file it by paper. It’s due by March 31 if you file electronically. Be sure the total tax withheld that you report on the Form 967 matches the total Idaho income tax withheld on your employees' W-2 forms. *If the due date falls on a weekend or state holiday, Form 967 is due on the next business day. Contact us if you need more information. Return to Questions
ITW - 12	What kind of withholding payment records should I keep? You must track your payments by your filing cycle period.  You can use the Record of Idaho Withholding Payments on this Web site.  Contact us if you need more information. Return to Questions
ITW - 13	What if I want to develop my own substitute withholding forms? The Substitute Forms Specifications contain all the information you'll need to create substitute forms and get them approved. If you need more help, e-mail our substitute forms help desk. Contact us if you need more information. Return to Questions
ITW - 14	How do I submit Forms 1098 and 1099 to Idaho? Attach the information returns to Form 967 and send them to the Tax Commission. If you didn’t withhold Idaho income tax, attach the information returns (except 1099Rs) to Idaho Form 96 or a copy of federal Form 1096 and mail to: Idaho State Tax Commission, PO Box 36, Boise ID 83722-0410. You can also file the returns electronically through our Web site (file as a 1099 form). If you withheld Idaho income tax, you must include Form 967 in your uploaded file. You must file the forms with the Tax Commission by the last day of February if filing by paper, or March 31 if filing electronically. Return to Questions