Idaho Eliminates Split-Monthly Payroll Tax Filing and Payment Schedule in 2014

Author: Rena Pirsos, XpertHR Legal Editor

December 30, 2013

Effective January 1, 2014, Idaho employers with annual income tax withholding of $240,000, or an average of $20,000 per month, will no longer pay the amount withheld on a split-monthly basis. Instead, they must pay the withholding on the basis of two periods per month and change to a semimonthly (twice per month) filing frequency:

  • The first period begins on the first day of the month and ends on the 15th day of the month, with payment due by the 20th day of the same month.
  • The second period begins on the 16th day of the month and ends on the last day of the month, with payment due by the fifth day of the following month.

For example, payment of amounts withheld is due by January 20th for the period of January 1 - 15. Payment is due by February 5 for the period of January 16 - 31.

Currently, split-monthly filers pay withheld income tax based on a reporting period that begins on the 16th of the month and ends on the 15th of the next month. Payment is due by the 20th of that same month.

The new requirements align the filing periods to a calendar-year basis, which should simplify annual reconciliations.

Accordingly, the Idaho State Tax Commission has updated the following resources to include the filing change:

More information is available on the Commission's Semimonthly Withholding Accounts Web page.