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Three Things to do if Your Business has Employees

By Lane V. Erickson, Idaho Business Lawyer

It’s always exciting to start a new business. In fact, sometimes the excitement of getting a new business off the ground is so intoxicating that it’s easy to overlook some of the basic things that need to be done in order for your Idaho business to be successful. It’s for this reason we are proud to have provided sound advice and counsel to our Idaho business clients for over 70 years in the creation and operation of their businesses.

At the Racine law office, we have a team of premier Idaho business lawyers with the skill, knowledge, and ability to help each of our business clients reach their full potential. Our team of skilled business attorneys includes partners Lane Erickson and TJ Budge, and attorneys Nate Palmer and Dave Bagley. The attorneys on our team have the knowledge, skill and experience to provide sound legal advice to our Idaho business clients. We help in all aspects of your Idaho business including creating an Idaho business entity and assisting with the intricacies of creating business contracts and helping clients create solutions to problems that arise. We have helped numerous business clients make good business decisions helping them and their businesses be successful. We are confident that we can help you too.

Often when a new Idaho business starts up it is going to have employees associated with it. We often advise our clients about the various things they need to be concerned with when it comes to having employees as part of their Idaho business. Below is a list of three specific things that you should be aware of if you have employees working for or associated with you and your Idaho business.

Withholdings on Wages

The first and perhaps most important thing that you should know is that if you have employees you are obligated to take care of all withholdings associated with their wages. These withholdings would include both federal and state income tax withholdings as well as all associated Medicare and Social Security withholdings. It’s also possible that your employees could have retirement account options where income is deferred into a retirement savings account such as 401K, 403b, IRA or other types of accounts that are similar.

Dealing with withholdings can sometimes be overwhelming for a new business owner who has employees, but it doesn’t need to be. Searching the web and particularly the IRS and the Idaho State Tax Commission websites provides a good deal of information for new business owner on the things that they need to take care of associated withholdings on wages of employees.

In addition to reviewing these resources, we always recommend to our new business clients that they seek out professional assistance through accountants and other financial advisors that can provide counsel and advice about how to handle withholdings as part of their business operation. Having an accountant or a skilled bookkeeper deal with these issues can often save the business owners themselves time and money in making sure that these things are taken care of correctly.

Unemployment Insurance

In addition to making sure that all income tax and other withholdings are made an employer owning an Idaho business must also make sure that they are taking care of unemployment insurance obligations as well. This insurance is designed to provide a benefit to employees in the event they are terminated from their job and are eligible to receive unemployment benefits.

The good news is that the Idaho Department of Labor makes this very easy for new employers. By going to the Idaho Department of Labor website there is a section that an employer can log into that provides specific information about their obligations and also allows them to track their insurance payments.

It is important for a new Idaho business owner to the deal with and handle unemployment insurance correctly. If this is not done, there could be penalties and fines associated with the employer’s failure. Again, for this reason, we recommend that all of our new clients who are going to have employees go to the Idaho Department of Labor website or speak directly with an Idaho Department of Labor individual to get the guidance and counsel they need to make sure they are doing things correctly.

Workers Compensation Insurance

Similar to unemployment insurance there is also an obligation for employers to provide Workers Compensation Insurance to their employees. Once again Idaho makes this very simple for new Idaho business owners. By going to the Idaho State Insurance Fund web page there is a section there that allows employers to learn everything they need to know about Workers Compensation Insurance and how it applies to their business operation and employees. By following the guidance and counsel listed on this website, most employers can have all their questions answered and can understand the very specific steps they are required to take to meet the legal requirements of providing Workers Compensation Insurance to their employees.

Additionally, this website also provides information about what happens if an employee is injured on the job. There are specific forms and specific processes that must be completed when this happens that provide the required protections to the Idaho business owners, the employees and the business itself.

Sometimes it’s not easy to know where to start. However, by providing this information on this webpage it is our hope that we have made the process a little simpler and easier for you to understand as an Idaho business owner. We have helped numerous clients in the creation and operation of their small business, and if you have questions, we are confident that we can help you too.

Enlist an Idaho Business Attorney to Help You

Our team of Idaho lawyers can help you with any of your business structure or operation needs. Whether you are seeking to create a new business or review a current business, we are available to discuss your options and answer your questions at an initial consultation. Call us toll free at 877.232.6101 or 208.232.6101 for a consultation. You can also email us directly at or stop by our office at 201 East Center Street, Pocatello, Idaho 83201. We will answer your questions and help you solve your Idaho business problems.

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