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How to Hire Employees In Idaho

Hiring in Idaho for the first time can be challenging, especially with the state's complex employment laws. Whether you're hiring independent contractors, setting up a legal entity, partnering with a PEO, or using an Employer of Record (EOR), it's essential to understand the local employment landscape. Playroll's comprehensive guide is here to help, whether you're onboarding local talent or relocating team members.

Here are four primary ways companies can hire employees in Idaho:

Establishing a local entity: Creating a legal entity in Idaho allows for direct hiring, but it can be costly and time-consuming. However, it gives you full control over employment and reduces risk exposure.
Partnering with an Employer of Record (EOR): An EOR, like Playroll, takes on the legal responsibilities of employment, acting as the employer on your behalf. This option streamlines hiring, payroll, and compliance with Idaho’s labor laws, helping you hire in Idaho without navigating the complex legal landscape yourself.
Working with a Professional Employer Organization (PEO): A PEO, such as Playroll, co-employs your team, managing essential HR functions like payroll, benefits, and compliance. Partnering with a PEO ensures you meet Idaho’s labor regulations while offering competitive employee benefits.
Hiring independent contractors: Hiring independent contractors can be more cost-effective, but Idaho has strict contractor classification rules. Proper classification is essential to avoid penalties for misclassification when hiring in Idaho.

Complying with Idaho specific employment regulations and federal laws is critical to avoiding legal risks and costly fines. Our guide focuses on hiring in Idaho, employment compliance, and how Playroll’s services can support your business as you navigate the complexities of hiring in the state.

Good To Know

Idaho's lower cost of living allows businesses to offer competitive salaries while maintaining lower operational costs.

The state provides access to a growing talent pool, particularly in tech, manufacturing, agriculture, and healthcare industries.

With low taxes and fewer regulations, Idaho is a welcoming place for businesses to thrive and expand.

Idaho's outdoor lifestyle and affordable living make it attractive for employees, improving recruitment and retention.

Key Things to Know About Hiring in Idaho

In Idaho, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.Here are the key things you need to know about hiring in Idaho.

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Do I Need an EIN or Payroll Tax Number To Employ in Idaho

To employ workers in Idaho, you will need an Employer Identification Number (EIN) and a Payroll Tax Number.

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Working Hours in Idaho

40 hours per week

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What Is Considered Full-Time Employment in Idaho?

Full-time employees are generally defined as those who work 30 or more hours per week

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Probation Period in Idaho

Probation periods for employees are not governed by specific state laws. However, probation periods are commonly used by employers as part of their hiring process, typically lasting between 30 and 90 days.

Labor Laws in Idaho

Minimum Wage in Idaho

$7.25 per hour

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Idaho Anti-Discrimination Laws

Idaho Human Rights Act aims to protect individuals from discrimination in various areas, such as employment, housing, public accommodations, and education. These laws provide protections based on specific characteristics, including race, color, religion, national origin, sex, age, and disability.

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Onboarding New Hires in Idaho

We can help you get your new employee started in Idaho fast, with a minimum onboarding time from just 1-2 working days. Note that the timeline is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Playroll platform.

For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.

Please note that payroll cut-off dates can impact the actual first day of employment. Playroll’s payroll cut-off date is the 10th of the month, unless otherwise specified.

Payroll Taxes For Idaho

In Idaho, employee compensation is governed by both state and federal laws. Employers are required to pay all wages due to their employees at least once per calendar month on regular paydays designated in advance.

Looking to grow your team in Idaho?

Stay Compliant: Navigate Idaho’s complex labor laws with ease.

Affordable Solution: Reduce costs with a budget-friendly EOR option.

Top-Tier Benefits: Access competitive Idaho and federal employee benefits for a stronger team.

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Idaho Employment Taxes

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Idaho. Understanding the tax obligations for both employers and employees is crucial when operating in Idaho's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Idaho. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.

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Employer Tax Contributions

Employment Tax Type	Tax Rate
Federal Social Security	Same as federal laws
Federal Medicare	Same as federal laws
Federal Unemployment Tax	Same as federal laws
State Unemployment Insurance	0.01% - 5.4%
Workers' Compensation Insurance	Rates vary

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Employee Payroll Tax Contributions

Employee Payroll Tax Contribution	Tax Rate
Idaho State Income Tax	Varies from 1.125% - 6.625%
Federal Social Security	Same as federal laws
Federal Medicare	Same as federal laws
	As per federal legislation

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Tax Due Dates in Idaho

For calendar-year filers, returns and payments are due by April 15 each year. If this date falls on a weekend or holiday, the deadline moves to the next business day.

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Pension in Idaho

Employers in Idaho are not required by state law to provide pension plans or retirement benefits to employees.

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The tax-related information provided in this guide is intended for general guidance and informational purposes only. Reach out to our dedicated team for insights on remote hiring in Idaho tailored to your needs.

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Benefit Requirements for Employers in Idaho

Idaho mandates several employee benefits according to state and federal laws. Additionally, while employers aren’t required to offer health insurance, most businesses must comply with the federal Affordable Care Act (ACA) if they have 50 or more employees.

It should be noted that in the US, typical benefits such as vacation time, maternity leave, health insurance, etc. aren't legally required. However, it’s standard practice to offer them. As part of our global employment services, Playroll can create a globally compliant and competitive compensation package that can help you attract and retain top talent in the US.

Employee Benefits For Idaho

Competitive benefits are essential for attracting and retaining top talent in Idaho. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Idaho packages include:

Pension or 401(K)
Vision Insurance
Life Insurance
Medical Insurance
Dental Insurance
Health Savings Plan (HSA)
Flexible Spending Account (FSA)

Are Employers Required To Provide Health Insurance in Idaho?

In Idaho, there is no state law in Idaho that mandates employers to provide health insurance, large employers (50+ full-time employees) must comply with federal requirements. Smaller employers are not obligated but may voluntarily provide health insurance benefits.

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Do Part-Time Employees Get Benefits in Idaho?

In Idaho, part-time employees are not automatically entitled to benefits like full-time employees under state law. Employers may offer benefits to part-time employees as part of their overall compensation package, but they are not legally required to do so unless they fall under specific federal or industry regulations.

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Are Employers Required To Offer 401k in Idaho?

Employers are not legally required to offer a 401(k) or any other retirement plan to their employees.

Paid and Unpaid Leave Policies in Idaho

Is Vacation Leave Mandatory in Idaho?

Vacation leave is not mandatory under state law in Idaho.

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What Are Mandatory Leave Entitlements in Idaho?

Type of Leave	Time Period	Mandatory	Pay Status	Eligibility Criteria
Family and Medical Leave Act	12 weeks	Yes	Unpaid	Per federal stipulations.
Jury Duty	Reasonable duration of trial or legal hearing	Yes	Unpaid	Employees summoned by the state to sit for jury duty
Military Duty	15 days	Yes	Unpaid	Employees must provide up to 90 days’ notice of training dates before their departure

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Paid Time Off in Idaho

No Idaho state laws mandating paid time off.

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Maternity & Paternity Leave in Idaho

Maternity and paternity leave benefits are provided under the federal Family and Medical Leave Act. See more details in our federal guide!

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Sick Leave In Idaho

Idaho does not require employers to offer sick leave. Employees may take leave under the Family and Medical Leave Act if they need time off due to sickness.

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Military Leave in Idaho

In Idaho, military members may take up to 15 days of unpaid leave per year for military training. This leave will not affect the employee’s vacation time, sick leave, and other types of leave.

Also, military members in Idaho are entitled to the same benefits that the Uniformed Services Employment and Reemployment Rights Act (USERRA) offers.

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Jury Duty in Idaho

An employer is not required to pay an employee for responding to a jury summons or serving on a jury.

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Employment Termination Protocols in Idaho

When it comes to terminating employment in Idaho, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process in Idaho

At-will employment is the default employment relationship in Idaho, which means that either the employer or employee can terminate the relationship at any time, for any reason, as long as it is not illegal.

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Notice Period in Idaho

No notice is required for either party to terminate the employment unless specified in the employment contract or collective bargaining agreement.

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Severance in Idaho

Employers are not required to provide severance pay unless specified by the employer's policy or a contractual agreement.

Hiring Employees in Idaho with an employer of record

Discuss how an EOR handles onboarding, including setting up compliant employment contracts, registering for taxes, and managing benefits like Idaho's superannuation system (if applicable).

The employer of record is responsible for:

Employment Compliance: Ensure all employment contracts comply with Idaho's labor laws and regulations, including proper classification of employees.
Payroll Management: Calculate, process, and distribute employee salaries in accordance with Idaho's payroll laws, including deductions for taxes and social security contributions.
Tax Filing and Contributions: Handle the registration, filing, and payment of employer taxes and social security contributions to the relevant authorities.
Employment Contracts: Draft and maintain compliant employment agreements, detailing salary, benefits, working hours, and termination terms in line with Idaho's legal requirements.
Benefits Administration: Provide mandatory employee benefits as required by Idaho's labor laws, such as health insurance, pension contributions, and statutory leave.

Employer of Record for Idaho

Guide to Hiring Employees in Idaho