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REMOTE EMPLOYEES

Hiring a remote employee in Idaho

Your company is in another state and one employee lives and works from home in Idaho. Which state's taxes apply, unemployment, paid leave and Idaho's employer rules, each with its official source.

Facts from the official sources listed at the end of this page; the oldest was read from an archived copy dated April 12, 2026. For employers. General information, not legal or tax advice: confirm a rule with the agency before you rely on it.

Idaho at a glance

Income tax
Idaho withholding
Reciprocity
None
Unemployment
$58,300 wage base, 1% new employer
Paid leave
None
New hire report
Within 20 days

Which state's taxes apply

Work state
Idaho taxes wages for work done in Idaho. Withhold Idaho income tax on the employee's wages.Source: Idaho State Tax Commission, Computing Withholding (opens in a new tab), checked October 5, 2026
Withholding form
Form ID W-4Source: Idaho State Tax Commission, Withholding Forms (opens in a new tab), checked October 5, 2026
Reciprocity
No state exempts Idaho residents from its withholding by reciprocity.Source: Idaho State Tax Commission, Income You Must Withhold On (opens in a new tab), checked October 5, 2026
Convenience rules
If your company is in Delaware, New York or Pennsylvania, the employee is assigned to an office there and works there on some days, that state taxes the days worked from home in Idaho for the employee's convenience.Source: Delaware Division of Revenue, 2025 Form PIT-NON Instructions, Non-Resident Individual Income Tax Return (PDF) (opens in a new tab), checked October 6, 2026; NYS DTF, TSB-M-06(5)I, New York Tax Treatment of Nonresidents and Part-Year Residents: Application of the Convenience of the Employer Test to Telecommuters and Others (May 15, 2006, PDF) (opens in a new tab), checked October 6, 2026; PA Department of Revenue, PA Personal Income Tax Guide, Gross Compensation (opens in a new tab), checked October 6, 2026
Office days in your company's state
That state's day limit, if it has one, decides whether it withholds on those days: see its page, or the helper below.
An employee from another state working in Idaho
Idaho sets no day count before a nonresident's wages for work there are withheld.Source: Idaho State Tax Commission, Income you don't withhold on (opens in a new tab), read from an archived copy dated April 12, 2026 (opens in a new tab)

Where to withhold: two states

Pick your company's state, the state where the employee lives and works from home, and the days a year the employee works at your office. The answer reads each state's rules from the data on these pages.

Your company is in
Employee lives and works from home in
Days a year at your office
Assigned to an employer office in New YorkMatters only in the states with a convenience rule (Connecticut, Delaware, New Jersey, New York and Pennsylvania), and only with office days there.

Income tax withholding

  • Idaho: all wages.

No New York withholding: the employee does no work in New York.

Unemployment

Idaho: the employee works from home there, so the work is localized in Idaho.

Simplified: resident credits, dollar tests, local taxes and a move during the year are not worked out here. Each state's rule and its source are on its page.

Unemployment

The employee works from home in Idaho, so the work is localized in Idaho: pay Idaho unemployment tax, not your company state's.

Agency
Idaho Department of LaborSource: Idaho Department of Labor, Unemployment tax rates (opens in a new tab), checked October 5, 2026
Wage base
$58,300 IndexedSource: Idaho Department of Labor, Rate Class Array, effective 01/01/2026 (PDF) (opens in a new tab), checked October 5, 2026
New employer rate
1% 1.000% standard rate for all new employers (except cost-reimbursement) for at least their first six calendar quarters Surcharges includedSource: Idaho Department of Labor, Rate Class Array, effective 01/01/2026 (PDF) (opens in a new tab), checked October 5, 2026

Open the account: Idaho payroll tax registration

Idaho has no paid leave program funded through payroll.

Idaho employer rules

Employment law applies where the employee works, so these follow the employee into Idaho.

Final pay
Fired: Earlier of the next regular payday or 10 days (weekends and holidays excluded); within 48 hours on written request Quit: Same as firedSource: Idaho Department of Labor, Guide to Idaho labor laws (2025, PDF), citing Idaho Code §45-606 (opens in a new tab), checked October 5, 2026
Pay frequency
At least once a month on regular paydays set in advance; the pay period may end no more than 15 days before payday.Source: Idaho Code §45-608, Pay periods (opens in a new tab), read from an archived copy dated May 16, 2026 (opens in a new tab)
Pay notice
At hire, tell the employee the rate of pay and the usual payday; give notice of any pay reduction before the work is done. In writing on the employee's request.Source: Idaho Code §45-610, Records to be kept by employer — Notice to employees (opens in a new tab), checked October 5, 2026
New hire reporting
Within 20 days of the date of hire.Source: Idaho Department of Labor, New hire reporting (opens in a new tab), checked October 5, 2026
E-Verify
No state E-Verify mandate for private employers, public contractors or public employers. 2026 bills to require it did not pass: S1247 (Idaho E-Verify Act: public agencies, and public contractors with 150+ employees on contracts of $100,000+) and H0584 (all employers).Source: Idaho Legislature, 2026 Senate Bill 1247 (Idaho E-Verify Act, as amended in the House), bill history and Statement of Purpose (opens in a new tab), checked October 5, 2026
Sick leave
No state sick leave law.Source: Idaho Department of Labor, Guide to Idaho labor laws (2025, PDF) (opens in a new tab), checked October 5, 2026

When the employee moves

Re-check the work state and the registrations before the next payroll: a move changes which state's withholding, unemployment, paid leave and employer rules apply.

Registering your business in Idaho, and whether one remote employee creates tax nexus for your company, are separate questions this page does not cover.

More on Idaho

WORKLIO HCM

Payroll for employees who work from home in another state

Worklio HCM withholds by home and work state, reciprocity included, and handles city and county taxes. We help open state withholding and unemployment accounts when you hire somewhere new, and our registration service can register your employer tax accounts for you. Taxes are calculated, deposited and filed in every state and locality, and when an agency notice arrives, you upload it and our tax team resolves it.

Remote employees in other states

Sources

The agency page or document behind each fact, as checked.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor. You remain responsible for your employment taxes and for each state's rules.

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