Idaho State Tax Routine (IDTX)

The Idaho State Tax Special Routine Processing utilizes the following steps:

Line 1	Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).
Line 2	Determine the employee’s Child Tax Exemption Amount*.
Line 3	Determine the Taxable Amount by subtracting Line 2 from Line 1.
Line 4	Using the Marginal Tax Rates (DEDX) entries for the Idaho State Tax deduction, compute tax on the Taxable Amount (Line 3).
Line 5	Divide the amount on Line 4 by the number of payroll periods in a year to determine the employee’s Idaho Withholding Tax for the pay period.

*Determine the Child Tax Exemption Amount

Take the Annual Exemption Amount on the Tax Parameters (TAXP) entry for the employee’s Idaho State Tax deduction and Marital Status * the number of State Tax Allowances on the employee’s Employee Tax Parameter (TAX) or Employee State Tax parameter (TAXS).

Note: The Idaho State Tax Routine is only available for sites that utilize the Next Generation Payroll service.

Data Setup Considerations

Sites need to ensure that they have implemented the following Business Process/Data Setup changes at their site prior to using the Idaho State Tax Routine.

The Tax Parameters (TAXP) setup for Idaho State Tax Deductions

The Annual Exemption Amount field is mapped with the Child tax Exemption Amount (Annual pay period)

The Employee Tax Parameter (TAX) enrollment (Note: this only applies to employees enrolled in a Tax Class (TAXC) that includes an Idaho State Tax Deduction).

The State Tax Allowance field captures the employee's claim for number of children for the child tax exemption amount.

Note: The point 2 functions if the MULTI_STATE_TAX parameter is set to N as part of the Application Parameter (APPCTRL) page, if the parameter is set to Y, then the system functions as per the point 3.

Employee enrolled in the State Tax Enrollment (TAXS) or Employee State Tax Withholding Certificate (ETAXS) (Note: this only applies to employees enrolled in State Tax Class (TAXCS) that includes an Idaho State Tax Deduction).

The State Tax Allowance field captures the employee's claim for number of children for the child tax exemption amount.