Idaho Governor Brad Little (R) signed House Bill 450 into law on Feb. 18, lowering Idaho’s unemployment insurance tax rate for the next two years. The state estimated the lower unemployment tax range would save Idaho employers $64 million for the duration of the tax cut.
Employers pay state unemployment taxes to fund the unemployment insurance program. Each state sets its own tax rate range, wage base (the amount of pay an employer needs to pay taxes on for each employee), and experience rating system.
Employers also pay federal unemployment taxes under the Federal Unemployment Tax Act (FUTA).
