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 The
most common taxes that a small business or a business owner must pay and
the agencies that collect them are listed below. For a brief description of an agency's taxing
activities and a link to its Web site, click on the agency name.
 
Idaho Department of Insurance
The Department of Insurance collects premium taxes
from insurance companies doing business in Idaho. The amount of
the tax varies by the type of insurance and other considerations. For information and rates contact the Department of Insurance at
(208)334-4250, or visit their Web site at http://www.doi.state.id.us.
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Idaho Department of Labor 
State Unemployment Insurance Tax: Most employers must provide their employees with
unemployment insurance coverage to protect them against
complete loss of income during periods of involuntary unemployment or a
reduction in hours. If you are required to provide
unemployment insurance coverage for your
employees, you will need to complete an
Idaho State Business Registration Form (IBR-1). The form can be
completed on-line at https://labor.idaho.gov/applications/ibrs/ibr.aspx.
Liability Checklist: If you
meet one or more of the following criteria, you are liable for
state unemployment tax and should complete the registration
process. If you have not paid wages or do not meet any of the
following criteria for liability, you are not liable for Idaho unemployment
insurance tax. An employer must pay state
unemployment tax if:
- The employer paid $1,500 or more in total wages in any calendar
quarter.
- The employer had one or more employees in at least 20 separate weeks
during a calendar year.
- The employer acquired the organization, trade, or business,
or substantially all of the assets of an employer who was subject
to the tax.
- The employer is subject to the Federal
Unemployment Tax Act and had one or more employees in Idaho, or is required
by the Federal Unemployment Tax Act to be covered by the state.
- The employer paid wages of $1,000 or more
in a calendar quarter for domestic service.
- The employer had 10 or more people performing agricultural
labor in at least 20 separate weeks during a calendar year.
- The employer paid cash wages of $20,000 or more
for agricultural labor in a calendar quarter.
Information about the Unemployment Insurance Program can be found at http://labor.idaho.gov/dnn/idl/UnemploymentInsurance/UIBenefits/tabid/681/Default.aspx. Quarterly Payroll Reports:
Once registered for
unemployment insurance coverage, an employer must make quarterly reports
and payments. Reports
and payments are due the last day of April, July, October,
and January for the quarter ending the previous month. The Department of
Labor mails report forms to all known covered employers
during the last week of each quarter. The
employer is not, however, relieved of the responsibility of filing the
reports if the forms do not arrive in a timely manner. Report forms may be obtained
by contacting the nearest Department of Labor Tax Representative or by writing to:
Idaho Department of Labor
Employer Accounts Bureau
317 W.
Main Street
Boise, Idaho 83735-0610
To find the location of your nearest IDOL office, click on the IDOL
Job Services Offices logo above.
Information for employees and former employees who are receiving or planning to file for unemployment
benefits can be found at http://cl.idaho.gov/publications/UI_Handbook.pdf. Federal
Unemployment Taxes are paid to the Internal Revenue Service by the
employer. For more information, see Internal Revenue
Service below.
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Idaho
State Tax Commission
The
Idaho State Tax Commission administers and collects the taxes listed
below. For an explanation of each tax, visit the Glossary
section of this Web site.
- Idaho Income Taxes (business and personal)
- Withholding of Idaho Income Tax
- Sales and Use Taxes
- Travel and Convention Hotel/Motel Tax
- Greater Boise Auditorium District Tax
- Gasoline and Fuels Taxes
- Beer and Wine Taxes
- Cigarette and Tobacco Taxes
- Estate Tax
- Mine License Tax
- Illegal Drug Stamp Tax
- License Tax On Electricity (Kilowatt Hour
Tax)
- Severance Taxes
- Coin Operated Amusement Device Annual Decals
Property taxes are established and collected by
individual counties and taxing districts to provide local services and do not generate revenue for state use. The state has the
responsibility to oversee property tax procedures to make sure they
comply with Idaho laws. In addition, the State Tax Commission is
responsible for valuing public utilities and railroads, which
collectively are called "operating property."
Visit Idaho State Tax
Commission for forms, electronic filing information, tax questions and answers, tax
brochures and other publications, Idaho administrative tax rules and
laws, IFTA information, and publications and forms for tax
professionals. For customer service, call 334-7660 in the Boise area or
(800)972-7660.
Local option sales taxes: Some small resort cities,
auditorium districts, and counties collect their own sales tax in addition to the
state sales tax. To find a list of such entities visit http://tax.idaho.gov/answers_sales_tax.htm#14
or visit the Tax Calendar on this site,
then contact the city or county at the number listed.
County sales tax: Nez Perce County collects a .5% county sales
tax. For information, contact the county.
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Internal Revenue Service
The IRS collects taxes owed to the Federal government, including personal
income taxes, corporate and business income taxes, self-employment taxes,
estimated taxes, federal unemployment taxes, and Social
Security and Medicare taxes on earnings. To learn more about
the taxes that your small business may be required to withhold and/or pay and to locate
forms and publications, visit the small business section of the IRS Web
site at http://www.irs.gov/businesses/small/index.html.
Information is also available on this site at irs_one.htm.
To reach the Business and Specialty Tax Help Line, call 1-800-829-4933.
You can participate in an on-line classroom on small business tax issues by going to http://www.irs.gov/businesses/small/article/0,,id=97726,00.html.
The classes are available in both English and Spanish.
Estimated Taxes: Federal law requires that individuals who
expect to owe $1,000 or more in taxes must have at
least 90 percent of their expected tax liability withheld from their
wages. Therefore, self-employed individuals, partners, and members of S-corporations
may need to pay
quarterly estimated taxes if they don't have
adequate tax withholdings. For information, visit http://www.irs.gov/businesses/small/article/0,,id=110413,00.html.
You may also need to pay estimated taxes if you have taxable income
from interest, dividends, rental property, or other sources.
State estimated taxes are not required to be paid, though you may do so voluntarily to reduce your state tax
liability.
FICA: The Federal Insurance Contributions Act
(FICA) tax is a tax imposed by the federal government on both
employees and employers to fund Social
Security and Medicare.
A portion of the tax is withheld from employee earnings and remitted to
the IRS. Employers also contribute a portion of the tax.
Federal Unemployment Taxes: An employer must make Federal
Unemployment Tax (FUTA) payments on each employee's earnings. The payments
are reported to the IRS using Form 940 or 940EZ, Employer's Annual
Federal Unemployment Tax Return. For information, visit http://www.irs.gov/businesses/small/article/0,,id=155255,00.html.
Form 940 can be found at http://www.irs.gov/pub/irs-pdf/f940.pdf.
Payments are made to the IRS on a quarterly basis along with deducted
Federal income tax payments, Social Security tax deductions and Medicare
payments, using Form 8109, Federal Tax Deposit Coupon Book. Your
business will automatically receive a Coupon Book when you apply for an
Employer Identification Number (EIN). (For information on EINs and how to
secure one, visit the Glossary or the Hot
Topics sections of this
Web site.)
Self-employment Taxes: Business owners and partners must pay
self-employment taxes, which are a form of Social Security. You must pay this
tax if you earn any income from self-employment activities, including part-time
activities, even if you pay Social Security taxes through another employer or
are currently drawing Social Security. Self-employment tax is reported
annually at the time you file your personal income taxes (usually April 15)
by using IRS Form
1040-SE. For information, visit http://www.irs.gov/businesses/small/article/0,,id=115043,00.html,
http://www.irs.gov/businesses/small/article/0,,id=115045,00.html,
and http://www.ssa.gov/pubs/10022.html.
Tax Payer Identification Number or Employer Identification Number (EIN)
- For information on obtaining an EIN visit the Hot
Topics section of this Web site or http://www.irs.gov/businesses/small/article/0,,id=98350,00.html.
Property Taxes: Property taxes are established and collected by
individual counties and taxing districts. The funds collected are used to provide local services,
such as roads and schools. Personal property tax is collected on the value
of depreciable assets owned by a business, including machinery, equipment,
and office equipment (including computers, software, fax machines, desks,
chairs, and more). The tax is paid annually or semi-annually in December
and June to your local county assessor.
Real estate property tax is collected on the assessed value of real
estate owned by a business or an individual. Real estate taxes are paid annually or
semi-annually in December and June to your local county assessor.
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