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.
