An employer is any individual, partnership, corporation, Limited Liability Company, association, trust, organization, political subdivision, or other entity, which employs one or more individuals to perform services in Idaho. Idaho Employment Security Law requires that anyone making payment for services performed must file quarterly employment reports. When an employer makes payment for services performed, it is the responsibility of the employer to notify the Department of Labor. This includes notification of any change in ownership or legal entity operating a business or any transfer of the trade or business.
If an employer has more than one distinct type of employment meeting the various coverage criteria, the employer must report all employment under the same account number. See Employer Liability Guidelines.
If an employer is subject to Federal Unemployment Tax (FUTA) on any services, that employer is automatically subject to State Unemployment taxes.
Once it has been determined that an employer must pay State Unemployment taxes, the employer must continue to file quarterly reports and pay necessary taxes, even if the employer's wage payments fall below the amounts stipulated in the Employer Liability Guidelines or the employer has NO employment to report. The account will be terminated when the employer advises the Department that the business, farm or household has ceased to operate, or that the employer has not had sufficient employment to meet the coverage criteria during the preceding calendar year and does not expect to pay subject wages in future periods. The employer's tax liability status will be reviewed upon his request to terminate the account.
An employer is automatically covered and subject to unemployment taxes and must report all wages in any amounts if the employer has taken over an existing business or acquired the assets of another, who at the time of acquisition, was a covered employer. Under these conditions the successor employer must report wages until it is determined the employer is no longer covered for UI tax purposes.
Cost Reimbursement Employers
Governmental units and nonprofit organizations as defined by Section 501(c)(3) of the Internal Revenue Code are covered employers under state law and may elect to reimburse the Idaho Employment Security fund for benefit payment costs as an alternate method of financing (rather than being assigned an experience rate. There are two methods of cost reimbursement financing specified in the law.
- The employer can be billed quarterly for his proportionate share of unemployment insurance benefit costs based on the percentage of wages paid in the base period, or
- The employing entity can elect to make quarterly advance payments equal to one percent of total quarterly wages. Soon after each calendar year, the employer's account is reconciled. The employer is billed if benefit costs exceed the advance payments. A refund is made if benefit costs are less than the advance payments.
A cost reimbursement employer may be required to provide a surety bond, particularly if the employer is on a limited budget and assets are minimal.
A group of cost reimbursement employers involved in similar activities may elect, with the approval of the Director of the Department of Labor, to act as a group in fulfilling the requirements of this Act.
If a former employee becomes eligible for unemployment benefits, a cost reimbursement employer who paid wages during the claimant's base period will be liable for a proportionate share of benefit costs. Regardless of reasons for separation from the cost reimbursement employer, a claimant could qualify for benefits later by earning sufficient wages from a subsequent employer. If the claimant then became unemployed through no fault of his or her own, proportionate benefit costs would be charged to any cost reimbursement employer which paid wages during the claimant's base period.
To obtain more information about unemployment insurance taxes, contact any Department of Labor tax representative. To find the tax representative nearest you, please consult the Tax Representatives directory.