Idaho Form 967 – Fill Out and Use This PDF

EIN00041 10-21-10

IDAHO ANNUAL WITHHOLDING REPORT INSTRUCTIONS

GENERAL INfORmATION fOR fORm 967

Use Form 967 – Idaho Annual Withholding Report – to report the total taxable wages and reconcile the total amount of Idaho taxes you withheld during the calendar year to the amount you paid to the Idaho State Tax Commission for the same calendar year. Also use Form 967 to submit the state copy of the Forms W-2 – Wage and Tax Statements – and any Forms 1099 with Idaho income tax withheld to the Tax Commission.

Who must file. If you had an active Idaho withholding account

for any part of the year or withheld Idaho income taxes during the year, you must ile Form 967. You must ile Form 967 even

if you withheld no income tax from employees' wages or if you cancelled your account during the year.

When to file form 967. Form 967 and W-2s and/or 1099s are due on or before the last day of february, whether you're iling

electronically or by paper.

Ways to file. You can ile electronically at tax.idaho.gov, or send the signed and completed Form 967 with W-2s and/or

1099s to:

Idaho State Tax Commission PO Box 76

Boise ID 83707-0076

Online

You can ile the following online through our website at

tax.idaho.gov:

W-2s with form 967. You can ile your W-2s electronically by either entering the W-2 detail online or uploading a ile. If you choose a ile upload, the speciications are available

at tax.idaho.gov (click on Tax Professionals). Idaho requires electronic iling of W-2 forms for employers who

meet the Internal Revenue Service (IRS) requirements to

ile electronically. If employers meet the IRS requirements

but have fewer than 50 employees working in Idaho, the state will accept either paper or electronic iling. If you meet these requirements but don't ile electronically, we may

return your W-2 statements to you and charge a penalty.

1099s and information returns. You can ile your 1099s and information returns electronically by uploading a ile. If

you withheld Idaho income tax, you must include

Form 967 with your ile.

If you e-ile, don't send paper returns, W-2s, or 1099s.

Paper

When you ile your Form 967 by paper, you must attach paper W-2s and any 1099s with Idaho income tax withheld to the form. Please make sure all copies of employees' W-2s and 1099s are legible, especially any carbon copies.

Combined federal/State filing Program for 1099s and Information Returns

Idaho participates in and encourages the 1099 Combined Federal/State Filing Program. If your information returns have

Idaho income tax withheld, you must complete Form 967. Check the combined federal/state iling box on line 9, and send the form

to the Tax Commission by the last day of february.

If you ile your 1099s and other information returns through the Federal/State Combined Filing Program, don't ile them

electronically through our website and don't submit paper copies with your Form 967.

Rounding Amounts. Round the amounts on your return to the whole dollar. Reduce amounts less than 50 cents to the whole dollar. Increase amounts of 50 cents or more to the next whole dollar.

Records and Forms Needed to Complete the Reconciliation

Process:

•Payroll records

•Completed W-2 forms and any 1099s with Idaho income tax withheld

•Record of Idaho Withholding Payments

•Form 967, Idaho Annual Withholding Report

Required Information for State W-2s and 1099s:

•Employer's name and address

•Employer's EIN (federal Employer Identiication Number)

•Employer's Idaho withholding account number from Form 967 (do not include the "-W" at the end of the number)

•Employee's name and address

•Employee's Social Security number

•State abbreviation (ID)

•Federal and state taxable wages

•Idaho income tax withheld

•Tax year

All copies of W-2 forms and 1099s must be legible and

unaltered. The forms must be for the current year and show the correct state indicator. Your business name, EIN, and state

account number must match the preprinted Form 967.

INSTRUCTIONS fOR COmPLETING fORm 967

Wages and Withholding

Complete the Record of Idaho Withholding Payments before completing Form 967. You don't need to mail it to the Tax Commission. You can ind the worksheet at tax.idaho.gov

through the Forms search (choose "income tax withholding" as the tax category).

Line 1. Enter the total Idaho taxable wages shown on the W-2s.

Line 2. Enter the total Idaho tax withheld included on your W-2s (Box 17) and 1099s (Box 16).

Line 3. For all ilers except split-monthly. Enter the total of Idaho income tax withholding payments you made during the calendar year.

Line 3. For split-monthly ilers only. Enter the total of Idaho income tax withholding payments you made during the calendar year.

3a. Enter the amount of income tax withheld for the period 1/1/10 to 1/15/10. This amount was reported on your 2009 Form 967 report, line 3c.

3b. Enter current tax payments for the period of 1/16/10 to 1/15/11.

3c. Enter the tax payment amount for the period 1/1/11 to 1/15/11. (This amount will be included on next year's reconciliation form.)

3d. Add lines 3a and 3b, and subtract line 3c. This is your calendar year withholding.

Line 4. Subtract line 3 (line 3d for split-monthly ilers) from line 2. This is your remaining tax due (or overpayment).

If line 2 is larger than line 3, you have underpaid your Idaho withholding and will owe additional tax. If line 3 is larger than line 2, you have overpaid your withholding and may be entitled to a refund.

Line 5. Enter the penalty on the balance due. If line 4 is zero or a credit, enter 0.

If you ile your Form 967 late, penalty will be calculated on any unpaid withholding tax due at ive percent (5%) per

month after the due date of the return.

If you ile your Form 967 on time, but don't pay all or part of

any unpaid withholding tax due, a penalty of one-half percent

(0.5% or .005) per month will be charged until paid in full.

The minimum penalty is $10. The maximum penalty is 25% of the tax due.

Line 6. Enter the interest on the balance due. If line 4 is zero or a credit, enter 0.

Interest accrues on the unpaid tax balance from the due date of the Form 967 to the date paid. Interest rates are:

1/1/11 - 12/31/11, 4% per year; .00010959 daily 1/1/10 - 12/31/10, 5% per year; .00013699 daily 1/1/09 - 12/31/09, 5% per year; .00013699 daily

If payment of the tax is received after the due date of the Form 967, interest will be computed on the balance due at the appropriate rate. To complete the computation, multiply the tax due x the daily rate x the number of days late.

Example: Additional tax due of $250 is paid 40 days late. $250 x .00010959 (2011 rate) x 40 days

$250 x .00010959 = $0.0273975/day x 40 days = $1.10 interest

Line 7. Enter the total of lines 4, 5, and 6.

Statements Submitted

Line 8. Enter the number of W-2 forms attached to the Form 967.

Line 9. Enter the number of 1099s with Idaho income tax withheld attached to the Form 967.

Check the box if you iled 1099s using the Fed/State Combined filing Program.

Line 10. Add lines 8 and 9. Enter the total number of statements submitted.

Line 11. The penalty for late iling of W-2s and 1099s is $2 per month (or part of a month) for each W-2 and 1099 (minimum $10

-maximum $2,000). Penalty is due if W-2s and 1099s are not received by the due date printed on the return.

Line 12. Add lines 7 and 11. Enter the tax due on line 12a, or the refund amount on line 12b. Don't enter information on both lines.

You must sign your return to make it valid. Unsigned returns

may result in the delay or denial of credits or refunds.

If you had an active withholding account for any part of the year, you must ile Form 967 even if you had no employees, paid no wages, or withheld no tax.