Idaho wants to reward
employers who create new jobs.
The state offers several programs to do just that. One of the newest is the Hire One Tax Credit, approved by the 2011 Legislature. Based on the employer's unemployment insurance tax rating and the county unemployment rate where the new job is located, qualified businesses can receive a refundable income tax credit on a sliding scale.
Here's the facts.
Employers qualify for the credit when they hire new employees who fill newly created positions and make at least $12 an hour plus benefits in counties with unemployment rates of 10 percent or higher and $15 an hour plus benefits in counties with unemployment rates under 10 percent.
The new employee must work for nine consecutive months before the employer can claim the tax credit. The credit is claimed in the tax year when the new hire became qualified.
Qualified employers will receive the tax credit for the gross wages paid during the first 12 months of employment.
Positive-rated
employers |
6 percent of
gross wages |
Standard-rated
employers |
4 percent of
gross wages |
Negative-rated
employers |
2 percent of
gross wages |
Qualified employers will receive the refundable income tax credit according their unemployment insurance rating. See the scale to the left.