Payroll and Benefits Guide - United States - Idaho

United States - Idaho
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Currency

United States Dollar
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Capital

Boise
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Employer Taxes

9.457% – 20.05%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

Idaho is known as the “Gem State” because it has an abundance of precious gemstones, including star garnets, which are found only in Idaho and India.

Idaho is famous for its potatoes and is often referred to as the “Potato State.” It is one of the leading potato-producing states in the United States.

Craters of the Moon National Monument and Preserve in Idaho is a unique volcanic landscape that resembles the surface of the moon.

Idaho has the deepest river gorge in North America, Hells Canyon.

The world’s first nuclear power plant to generate electricity for a power grid was built in Idaho.

Idaho has the largest population of Basque Americans in the United States.

United-States-Idaho

Contributions

Employee Payroll Tax

Contribution TypeRate
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance0.207% – 5.40%
Unemployment- New Employer1.00%
FICA Social Security6.20%
FICA Medicare1.45%
The FUTA0.60% – 6.00%

Payroll

Payroll Cycle

Typically, employees in Idaho receive their wages every two weeks, and the payment must be made within seven days after the end of the pay period. For employees who are paid on a monthly basis, the payment must be made within fifteen days after the end of the pay period, as specified by the Idaho Department of Labor.

13th Salary

There are no laws requiring 13th salary.

Work Hours and Week

The average workweek consists of 40 hours, or 8 hours per day from Mondays to Fridays.

Overtime

In Idaho, the Fair Labor Standards Act (FLSA) governs labor practices, and overtime compensation is required when employees work more than 40 hours in a week. Employers must pay overtime at a rate of 150% of the regular salary rate for the additional hours worked. If employees have regular schedules that include weekends or rest days, no extra payment is necessary for working on those days.
United-States-Idaho

Leave

Paid Time Off

In Idaho, there are no specific state laws that dictate the quantity and compensation of vacation time. Instead, it is customary for employers to have the discretion to determine whether to provide paid or unpaid vacation leave. However, these policies must adhere to employment laws and be clearly stipulated in any applicable collective bargaining agreements.

Public Holidays

There are 12 official holidays in Idaho.

Sick Days

Employers in Idaho often adhere to the Family and Medical Leave Act (FMLA), which grants specific employees up to 12 weeks of unpaid and job-protected leave per year for certain family and medical reasons. These reasons may include maternity leave, dealing with serious illnesses, or the need to care for a spouse or child.

To be eligible for FMLA, employees must meet specific criteria, including working for the employer for at least one year, completing a minimum of 1,250 hours over the past year, and working at a location where the company employs 50 or more employees within a 75-mile radius.

Maternity Leave

Mothers are allowed to have 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.

Other Leave

Under Idaho law, all employers are obligated to grant job-protected but unpaid leave to their full-time employees for jury duty or when they are required to appear as a witness, respond to a subpoena, or participate as a plaintiff or defendant in court proceedings. To avail this leave, employees must provide their employers with a copy of the jury summons or any other documentation that serves as evidence of their obligation to fulfill these legal requirements.

 

Termination

Termination Process

In the United States, unless there are mass dismissals or specific provisions in an employment contract or collective bargaining agreement, there is no legal requirement for a formal notice period when terminating an individual employment relationship. The concept of “at-will” employment prevails.

“At-will” employment means that either the employer or the employee can end the employment relationship without providing notice or stating a reason, as long as it does not violate laws, such as engaging in illegal activities or discriminating against protected categories defined by law. Exceptions to this include complying with the Federal Worker Adjustment and Retraining Notification Act (WARN) in cases of significant workforce reductions.

Notice Period

In Idaho, the majority of employees have “at-will” employment, allowing either the employer or the employee to terminate the employment relationship without notice. The state does not mandate employers to provide compensation for unused vacation time.

However, it is customary for employers to pay employees for their unused vacation days if the employee provided some advance notice before resigning. While there is no official notice period required by law, the general practice is to provide a minimum of two weeks’ notice.

Severance Pay

Unless stated otherwise in an employment contract or collective bargaining agreement, employers in Idaho are not obligated to provide severance payments to terminated employees. Employers who decide to offer severance packages must establish provisions within the employee’s contract that are agreed upon by both parties. In many cases, severance payments in Idaho are linked to the length of an employee’s service. The most common practice is to provide one week’s pay for every year of service.

Probation Period

Probation Period

Idaho does not have any specific laws governing formal “trial/probation periods” for employees. However, it is a customary practice for employers to conduct a performance evaluation after an initially specified period of employment, typically around 90 days. This evaluation allows employers to assess the employee’s performance and suitability for the position.

Immigration

Foreign nationals who do not possess permanent resident status or a work visa are not permitted to work in the United States. To hire a foreign national, an employer can submit a petition to the United States Department of Homeland Security/United States Citizenship and Immigration Services (USCIS) to obtain an employment visa on behalf of the prospective employee.

Once the petition is approved, the prospective employee must obtain a “visa stamp” from a U.S. embassy or consulate, except for Canadian citizens who are exempt from this requirement. In order to secure a temporary U.S. work visa, the employer must file a petition with USCIS, and an approved petition is a necessary component of the visa application process.

VAT

In Idaho, the minimum combined sales tax rate for 2023 is 6.044%. This includes a state tax rate of 6.00% and a local tax rate of 0.044% in USD.