How to File Idaho Form 967 for Employers
A straightforward guide for Idaho employers on preparing and filing the annual Form 967 withholding report to ensure accurate state tax reconciliation.
Idaho Form 967, the Annual Withholding Report, is the official document used to reconcile the total state income tax withheld from employee wages over a calendar year with the amount remitted to the Idaho State Tax Commission. Any business that has an active withholding account is required to file this annual report.
The purpose of the form is to ensure that the figures match, providing a year-end summary of withholding activities. It acts as a capstone to the periodic payments an employer makes throughout the year, whether they pay on a quarterly, monthly, or more frequent basis.
Required Information and Form Completion
You will need your nine-digit Federal Employer Identification Number (FEIN) and your Idaho withholding account number. Additionally, you must compile your payroll records to determine the total compensation paid to all employees and the total Idaho income tax withheld during the year.
Line 1 asks for the total Idaho taxable wages, which should match the totals from your employees’ W-2 forms. Line 2 is for the total Idaho income tax withheld, as reported in Box 17 of the W-2s and on any applicable 1099s. On Line 3, you will enter the total of all withholding tax payments you made to the Tax Commission throughout the year.
Line 4 is the result of subtracting your total payments from the total tax withheld; a positive number indicates tax due, while a negative number signifies an overpayment. The form also requires you to report the number of W-2 and 1099 forms being submitted on lines 8 and 9. It is recommended to use the “Record of Idaho Withholding Payments” worksheet from the Idaho State Tax Commission’s website to help organize your payment data.
Submission and Deadlines
The annual due date for filing Form 967 and the accompanying state copies of employee W-2s is January 31 of the year following the tax year. While the Forms 1099 that report Idaho income tax withholding are not due until the last day of February, the withholding amounts from those forms must be included in the totals on your Form 967 filed in January.
Employers have two primary methods for submitting their annual report. The preferred method is electronic filing through the Idaho Taxpayer Access Point (TAP). Alternatively, you can mail the physical Form 967 along with paper copies of W-2s and 1099s to the Idaho State Tax Commission, PO Box 76, Boise ID 83707-0076.
Failure to file or pay by the deadline can result in financial penalties. The penalty for a late-filed Form 967 with a balance due is 5% of the unpaid tax per month, up to a maximum of 25%. If the return is filed on time but the tax is not paid, the penalty is 0.5% per month on the unpaid balance. The minimum penalty is $10.
A separate penalty of $2 per form per month applies to the late filing of W-2s and 1099s, with a minimum of $10 and a maximum of $2,000. Additionally, interest accrues on any unpaid tax from the due date until the balance is paid in full; the rate for 2025 is 6% per year.