Fillable Form 72 - Idaho Hire One Act Credit

EFO00242p3

Form 72 - Page 2

10-10-13

Health Care Benefits Waiting Period

Qualifying Wages

To qualify as employer-provided health care benefits, the health

For purposes of calculating the credit amount, qualifying wages

care benefits plan may not have a waiting period of more

is the employee's gross salary paid to the employee during the

than two months from the date of an employee's first day of

initial 12 months of employment. However, gross wages does

employment. A new employee covered by a plan with a waiting

not include:

period longer than two months from the employee's first day of

• Nontaxable fringe benefits;

employment does not qualify for the Hire One Act credit.

• Tips paid by customers of the employer;

• Wages that are subsidized through another taxpayer or

Idaho Department of Labor (DOL) Taxable Wage Rate Notice

program, including any federal or state grant.

Employers are advised of their unemployment insurance tax rate

in mid-December of the preceding calendar year through their

Qualifying wages for purposes of this credit may be earned in

DOL tax rate notice. They are also advised of their tax rate on

two different tax years. For example, for an employer that files

the quarterly tax statements.

an income tax return on a calendar year basis, if an employee

was hired on May 1, 2011, and the employee was considered

Idaho DOL Unemployment Insurance Tax Report

a qualifying employee in 2012, the employer would include the

The employer must begin with the DOL unemployment insurance

gross qualifying wages paid to that employee between May

tax report to determine the number of qualifying employees for

1, 2011, and April 30, 2012, when determining the amount of

each month of the taxable year. However, an employee listed

refundable credit for tax year 2012. If the employer hired an

in these reports does not automatically qualify to be included

employee on April 1, 2012, and the employee was considered

in the number of employees. Only those employees who meet

the qualification are included in the monthly total. See Specific

a qualifying employee in 2012, the employer would include the

Instructions for Part II.

gross qualifying wages paid to the employee between April 1,

2012, and March 31, 2013, when determining the amount of

Information Required to Be Included with Idaho Return

refundable credit for tax year 2012.

An employer must include with the Idaho income tax return on

Seasonal, New Business Or Acquired Business

which the Hire One Act credit is claimed a copy of the Taxable

An individual employed in a seasonal or new business that was

Wage Rate Notice issued by the Department of Labor for that

in operation for less than nine consecutive months cannot qualify

income tax year. Notices that cannot be included with an

electronically filed return must be separately mailed to the Tax

as a new employee.

Commission.

If you acquired a business from another taxpayer or you are

operating the same or substantially identical business as

Pass-Through Entities

operated by another taxpayer in the last 12 months, you must

The credit earned by a pass-through entity is refunded to the

obtain employment information from the previous owner to

pass-through entity, rather than passed through to the owner.

determine whether a person qualifies as a new employee of your

Qualifying Employer

business. The table below shows how to calculate the credit in

your first three years of business.

A qualifying employer is a rated employer under the Idaho

Employment Security Law, but does not include a governmental

agency or nonprofit entity. A nonprofit entity includes any entity

Unitary Corporations

Each corporation in a unitary group must separately calculate the

that is exempt from the Idaho income tax under Section 63-

amount of the Hire One Act credit based on its own employees

3025B, Idaho Code, including those entities that are exempt

and must not include the employees of other corporations

except for paying income tax on unrelated business income.

included in the combined group.

Calculation of Average Number

Tax Year of

Calculation of Average Number of Qualifying Employees During the

of Qualifying Employees During

New Owner

Three Preceding Tax Years

the Preceding Tax Year

First year

First preceding tax year

Use the previous owner’s numbers for all

Use the previous owner’s average

three years

number of qualifying employees

Second preceding tax year

Third preceding tax year

Use your first year’s numbers

Use your first year’s average

Second year

First preceding tax year

number of qualifying employees

Second preceding tax year

Use the previous owner’s numbers

Third preceding tax year

Use the previous owner’s numbers

Use your first year’s numbers

Third year

First preceding tax year

Use your second year’s average

number of qualifying employees

Second preceding tax year

Use your second year’s numbers

Third preceding tax year

Use the previous owner’s numbers

Form 72 - Idaho Hire One Act Credit - 2013 Page 3

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