Idaho issues new withholding tables for 2018

Idaho has issued new withholding tables for wages paid on and after January 1, 2018. Employers do not need to go back and readjust. Simply implement them as soon as possible. All of the tables will be reproduced in the Payroll Management Guide at ¶5878 and ¶5879 in a future release. The state now uses an allowance count on the federal Form W-4 line 5 (reproduced on page 26) to calculate withholding. The Idaho withholding allowances are based on the number of children who qualify for the Idaho Child Tax Credit. The state recommends that all employees update their W-4s. The supplemental wage rate has been reduced to 6.925% (Idaho Tax Commission, A Guide to Idaho Income Tax Withholding, EPB00006 04-27-2018.)

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