22 June 2018 Idaho tax department releases revised employer guide, Form W-4 worksheet The Idaho State Tax Commission has released to its website a further revision to the publication, A Guide to Idaho Income Tax Withholding (rev. 6-20-2018), containing several changes. Of significant note, the Commission has created a Form W-4 worksheet that Idaho employees can use to determine how to complete the form for Idaho income tax withholding purposes. Employees should use the worksheet to estimate their Idaho allowances and any extra state withholding that may be required. The Commission recommends that all employees update their W-4s using the worksheet. By way of review, Idaho uses the federal Form W-4; therefore, employees can request a different Idaho income tax withholding amount by claiming fewer dependents for Idaho purposes. Employees can add this information at the bottom of the federal Form W-4 they give you. They can't request less Idaho income tax withheld by listing more dependents. Other key changes to the Guide to Income Tax Withholding include: — In the Percentage Computation Method instructions on page 20, the employer's requirement to "add 2" for the single filing status with one or more withholding allowances is eliminated. Recently enacted Idaho tax reform legislation?(HB 463): — conformed Idaho tax law to the federal Internal Revenue Code for tax year 2018; Although the revised 2018 withholding tables reflected significant retroactive changes due to new federal and state tax laws, employers were instructed to not adjust the withholding for the months prior to receiving the revised tables, but instead to use the revised tables going forward. (Notice, Idaho State Tax Commission, May 1, 2018.)?? For more information on Idaho withholding taxes, see the agency's website.
Document ID: 2018-1279 | ||||||||||||||
