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The Idaho Department of Labor is a state agency in Idaho. The agency is responsible for economic development, labor relations, workforce, technology, volunteerism, and workforce development. It also processes requests for unemployment benefits and unemployment insurance.
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Unemployment insurance is funded by both federal and state payroll taxes. In most states, employers pay state and federal unemployment taxes if: (1) they paid wages to employees totaling $1,500 or more in any quarter of a calendar year, or (2) they had at least one employee during any day of a week for 20 or more weeks in a calendar year, regardless of whether those weeks were consecutive.
Taxes under State Unemployment Tax Act (or SUTA) are those designed to finance the cost of state unemployment insurance benefits in the United States, which make up all of unemployment insurance expenditures in normal times, and the majority of unemployment insurance expenditures during downturns, with the remainder paid in part by the federal government for "emergency" benefit extensions.
As of March 11, 2021, under the American Rescue Plan, the first $10,200 in unemployment benefits collected in the tax year 2020 were not subject to federal tax.
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