IDAPA 35.01.01.871 — STATE INCOME TAX WITHHOLDING REQUIRED (RULE 871)

Sections 63-3035 and 63-3036, Idaho Code
01.
Services Performed Within and Without Idaho. An employer is required to withhold only on the
portion of the employee's total compensation that is reasonably attributable to services performed in Idaho regardless
of his post of duty. Compensation may be allocated to Idaho based on workdays, hours, mileage, or commissions.
(4-6-23)
02.
Exceptions to Withholding Requirements. Withholding is not required if:
(4-6-23)
a.
The salaries, wages, tips, bonuses, and other compensation paid by an employer are for services
performed wholly outside Idaho regardless of the residency or domicile of either the employer or employee.
(4-6-23)
b.
The compensation is paid by the United States Armed Forces to a nonresident serving on active
duty in Idaho;
(4-6-23)
c.
The compensation is paid to an interstate transportation employee of a rail carrier covered by Title
49, Section 11502, United States Code, who is a nonresident of Idaho; or
(4-6-23)
d.
The compensation is paid to an interstate transportation employee of a motor carrier covered by
Title 49, Section 14503, United States Code, who is a nonresident of Idaho; or
(4-6-23)
e.
The compensation is paid to an employee of an interstate air carrier covered by Title 49, Section
40116, United States Code, who is a nonresident of Idaho and earns fifty percent (50%) or less of his compensation in
Idaho; or
(4-6-23)
f.
The compensation is paid to a master or seaman on a vessel in the foreign, coastwise, intercoastal,
interstate, or noncontiguous trade or to an individual employed on a fishing vessel or any fish processing vessel
covered by Title 46, Section 11108, United States Code; or
(4-6-23)
g.
The compensation is exempt from federal withholding.
(4-6-23)