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 Listed
below are the
most common taxes a small business or a business owner must pay and
the agencies that collect them. For a brief description of an agency's taxing
activities and a link to its Web site, click on the agency's name.
 
Idaho Department of Insurance
The Department of Insurance collects premium taxes
from insurance companies licensed to do 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.idaho.gov. The
DOI also collects Hospital and Professional Service Corporation Tax
on self-funded insurance programs. Visit the DOI Web site for more
information. The form to file can be found at www.doi.idaho.gov/Company/Thpsc.pdf.
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Idaho Department of Labor 
State Unemployment Insurance Tax: Most employers must provide their employees with
unemployment insurance coverage to protect against 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 IBR-1, Idaho State Business
Registration application,
found on-line at https://labor.idaho.gov/applications/ibrs/ibr.aspx.
Liability Checklist: If you
meet one or more of the following criteria, you must pay 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 a business that is 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 Idaho 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 using form Tax020 found at http://labor.idaho.gov/ftp/tax020.pdf
and Tax026 found at http://labor.idaho.gov/ftp/tax026.pdf. 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, by
accessing them on-line at the Web sites listed above, or by writing to:
Idaho Department of Labor
Employer Accounts Bureau
219 W.
Main Street
Boise, Idaho 83735-0030
To find the location of your nearest IDOL office, click on the IDOL Offices logo above. Federal
Unemployment Taxes are paid to the Internal Revenue Service by the
employer. For more information, see Internal Revenue
Service below. Tax Credits and Incentives: Employers who meet
certain requirements may be eligible to receive a Work Opportunity tax credit. For
information visit http://labor.idaho.gov/dnn/Businesses/EmployerTaxCredits/tabid/644/Default.aspx
or visit the Employer Issues section of
this web site.
Idaho Department of Commerce
Tax Credits and Incentives: Find tax incentives for hiring new
employees in certain rural counties, for creating jobs, and other business
activities at http://commerce.idaho.gov/business/incentives.aspx.
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Idaho
State Tax Commission
The
Idaho State Tax Commission administers and collects the taxes listed below.
Also refer to the most current Idaho State Tax Commission Annual Report,
page 5, found at
http://www.tax.idaho.gov/. Property
Taxes on both real estate and business equipment are administered and collected by individual counties and taxing
districts to provide local services.
Idaho
state Income Tax (business and personal):
http://tax.idaho.gov/i-1044.cfm
http://tax.idaho.gov/i-1039.cfm
Withholding
of Income Tax:
http://tax.idaho.gov/i-1026.cfm
Sales
and Use Tax:
http://tax.idaho.gov/i-1049.cfm
Gasoline
and Fuels Taxes:
http://tax.idaho.gov/p-motorfuels.cfm
Beer
and Wine Tax:
http://tax.idaho.gov/i-1021.cfm
http://tax.idaho.gov/i-1025.cfm
Cigarette
and Tobacco Taxes:
http://tax.idaho.gov/i-1047.cfm
http://tax.idaho.gov/i-1048.cfm
Coin
Operated Amusement Device Annual Decals:
http://tax.idaho.gov/
Greater
Boise Auditorium District Tax:
http://tax.idaho.gov/pubs/EBR00016_09-29-2006.pdf
Illegal
Drug Stamp Tax:
http://tax.idaho.gov/i-1040.cfm?pg=2
License
Tax on Electricity (Kilowatt Hour Tax):
http://tax.idaho.gov/i-1090.cfm
Local
Option Nez Perce County Sales Tax:
http://tax.idaho.gov/pubs/EBR00016_09-29-2006.pdf
Mine
License Tax (refer to Form 47):
http://tax.idaho.gov/forms/s-results-form.cfm
Severance
Taxes: Tax on market value of oil and gas produced or sold in Idaho:
http://tax.idaho.gov/
Travel
and Convention Hotel/Motel Tax:
http://tax.idaho.gov/pubs/EBR00016_09-29-2006.pdf
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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
Social
Security and Medicare taxes
To learn more about
the taxes 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. On-line video and audio presentations on small business tax issues can
be found at http://www.irs.gov/businesses/small/article/0,,id=97726,00.html.
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
or pay estimated tax. Self-employed individuals, partners, and members of S-corporations
who don't have adequate tax withholdings may need to pay
quarterly estimated taxes. 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.
It is not necessary to pay State estimated taxes, though you may do so voluntarily to reduce your state tax
liability. If you want to pay state estimated taxes, you will need to
complete Form 51, Estimate of Idaho Individual Income Tax. For information
and to obtain the form, visit http://tax.idaho.gov/.
Excise Tax: Excise taxes are paid at the time of purchase on
certain products, such as gasoline. For information, visit http://www.irs.gov/businesses/small/article/0,,id=99517,00.html. Also
see the Glossary for more information.
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. For information,
see http://www.irs.gov/businesses/small/international/article/0,,id=104936,00.html.
Federal Unemployment Taxes: An employer must make Federal
Unemployment Tax (FUTA) payments on employee 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/international/article/0,,id=104985,00.html.
Form 940 can be found at http://www.irs.gov/pub/irs-pdf/f940.pdf.
Payments are made to the IRS quarterly 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 on their share of the net profits of a business. The
tax is 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 receiving Social Security payments. 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.
Idaho does not issue a state tax payer identification number.
Tax Credits and Incentives: The IRS offers several tax credits,
including credits for disability access modifications to a business, a
research tax credit, and credit for hiring Native American employees. Information
on each is available on the IRS Web site at http://www.irs.gov.
Section 179 Depreciation Deduction
Section 179 of the Internal Revenue Code allows small and medium-sized
businesses to deduct the full purchase price, up to $250,000, of qualifying
equipment purchased or financed during the 2009 tax year. The code caps
total purchases per business in 2009 at $800,000. The Stimulus Act of 2008
temporarily allows businesses that exceed the $250k deduction limit to
take a bonus depreciation of 50% on the amount that exceeds the limit.
Normal depreciation can also be taken on the balance. For information,
visit http://www.section179.org/.
Also check with your accountant.
Property Taxes:
Property taxes are established and collected by
individual counties and taxing districts. The funds collected are used to
fund local services,
such as roads and schools. Two types of property tax are collected. 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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