In late March, the state of Idaho announced additional 2008 withholding changes. Though the change is retroactive Jan. 1, 2008, the state has confirmed that no retroactive withholding tax adjustments are required.

In this recent change, the Idaho increased the lower wage threshold on each of its tax brackets. The annual standard deduction, which was increased earlier this year, remains at $3,500. The new changes will result in a modest withholding tax cut for most employees work in Idaho.

There is no action that you need to take to implement this change. The payroll system will apply the change automatically on Idaho withholding tax calculations made for checks dated on or after April 21, 2008.