Idaho payroll taxes, calculator and new hire reporting (2026)

How Idaho payroll differs

• A rate built from parts. The 1.000% new employer rate is 0.970% unemployment insurance plus 0.030% workforce development. Experience rates run from 0.208% to 5.400% (deficit class 6), and each includes a workforce development piece (0.006% to 0.058%) and an administrative reserve piece, which is 0.000% for 2026. The Governor's office described 2026 rates as another $11 million in tax savings for Idaho businesses.
• One flat withholding rate. The Idaho State Tax Commission uses 5.3% in its computation examples, and supplemental payments such as bonuses are also withheld at 5.3% (page updated July 29, 2026). The Idaho child tax credit allowance is zero.
• Federal minimum wage. Idaho follows $7.25, with a $3.35 tipped cash wage.
• Pay at least monthly. Paydays must be designated in advance (Idaho Code 45-608).
• Final pay within 10 days. Whether the employee quits or is fired, pay by the next regular payday or within 10 days (weekends and holidays excluded), whichever is earlier. If the employee asks in writing, pay within 48 hours (Idaho Code 45-606). Our notes give Idaho Code 45-606 but no saved official page, so read the section before you rely on it.
• No state leave tax or local income tax found. Our research found neither, though that was not confirmed on a state page.

Idaho's $58,300 base sits between Oregon's $56,700 and Washington's $78,200, so all three Northwest states tax most or all of a $50,000 salary for unemployment. Idaho's 1.000% starting rate is well under Oregon's 2.4%; Washington assigns new employers an industry average rate instead of a flat one.

Idaho employer payroll facts at a glance

Idaho new hire reporting

Report every new hire to the Idaho Department of Labor within 20 days of the hire date. Two Idaho details:

• If a new hire does not have a Social Security number yet, the 20 days start when you receive the number.
• Idaho does not currently penalize late reports. Report on time anyway, since 20 days is also the federal maximum.

The report needs the employee's name, address and Social Security number, the first day they worked for pay, and your name, address and federal EIN. Multistate employers that report electronically can send all new hires to one state after notifying the US Department of Health and Human Services in writing (federal rules; the ACF page was last reviewed September 8, 2016).

Registering an Idaho employer

1. Get a federal EIN from the IRS.
2. Register for withholding with the Idaho State Tax Commission.
3. Create an account in the Idaho Department of Labor Employer Portal for unemployment insurance. The portal's "Create an account" link is on the department's e-services page; we did not find a separate new employer registration page.
4. Set up new hire reporting with the Department of Labor (20 days).
5. Get workers comp. The Idaho Industrial Commission says most employers must carry it, and out-of-state employers with Idaho home-based workers need it whether the worker is full-time, part-time, seasonal or occasional. Household family members of a sole proprietor are exempt. The page we read did not state a headcount rule.

What a $50,000 Idaho worker costs

Because the wage base is above the salary, the 1.000% applies to the full $50,000.

That is $4,367, 8.73% above pay. Idaho UI is $500 of it. A worker earning $58,300 or more would cost $583 in Idaho UI at the new employer rate. The employee has 5.3% Idaho income tax withheld (after allowances) and no other state deductions. Try your own figures here:

Workers comp is the main cost the calculator leaves out; see how workers comp is priced.

Idaho payroll services and PEOs

Idaho has few state-specific deductions, so the checklist is short: the 5.3% flat withholding and supplemental rate are loaded, the UI wage base is $58,300 (not the $7,000 FUTA base) and new hire reports go out within 20 days. Gusto Simple is $49 a month plus $6 per person, and Wave Payroll is $40 plus $6 per active employee (both checked October 16, 2026). See payroll software ranked for others.

Idaho has no state PEO license, per Harbor Compliance's guide (private, not an Idaho agency). Compare PEOs in our PEO rankings and nearby Utah PEO options.