Is a company located 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.
Related Questions
- If I am an employer located in another state, but have employees in Nebraska from time to time, are their wages subject to Nebraska withholding when they are working in Nebraska?
- Is a company in another state required to withhold Idaho income tax from an employee working in Idaho?
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