The Idaho State Tax Commission has released to its website revised A Guide to Idaho Income Tax Withholding (rev. 7-3-2017), containing updated 2017 state income tax withholding tables adjusted for inflation.

Employers are instructed to not adjust the withholding for the months prior to receiving the revised tables, but instead to begin withholding under the new tables now. (General tax news, Idaho State Tax Commission, July 10, 2017.)

The Idaho personal income tax schedules are adjusted for inflation each year. The Tax Commission releases revised income tax withholding tables when the accumulated annual inflation adjustments cause a substantial change.

Supplemental wages

The supplemental withholding rate remains at 7.4%. Supplemental wages are those wages paid to an employee in addition to the employee's regular wages, such as bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay, retroactive pay, expense allowances paid under a nonaccountable plan, payments for nondeductible moving expenses and other similar payments. Employers may choose to compute withholding on supplemental wages by combining the supplemental payment with regular wages and treating them as a single payment or by multiplying the supplemental payment by the supplemental withholding rate.

For more information on Idaho withholding taxes, see the agency's website.

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