Idaho PEO Law FAQs
Does Idaho require PEOs to register with the state?
Yes. A professional employer must comply with the Professional Employer Recognition Act, Chapter 24, Title 44, Idaho Code (I.C. 44-2401 et seq.), to do business in Idaho and to be eligible for unemployment experience rating transfers. The Idaho Department of Labor administers PEO unemployment accounts and enforces the Act's minimum standards. Client companies must complete an Idaho Business Registration (IBR-1) when joining or leaving a PEO (failure carries a $500 penalty).
What is Idaho's unemployment insurance (SUI) taxable wage base?
Idaho's SUI taxable wage base is $58,300 per employee, which is significantly higher than the federal baseline. The new employer rate is 1.0%.
What is experience rating in Idaho's PEO context?
Under Idaho law, when a client joins a PEO, the client's experience rating can transfer to the PEO. This means the PEO's unemployment tax rate may be affected by the claims history of its client employers.
Is workers' compensation mandatory in Idaho?
Yes. Idaho requires employers with one or more employees to carry workers' compensation insurance. Coverage is available through private carriers or the state industrial commission.
What is the minimum wage in Idaho?
Idaho's minimum wage is $7.25 per hour, which matches the federal minimum wage.