Idaho Workers’ Compensation

USTAX BAY
Apr 30
2 min read

Essential Guide for Employers

Written by US Tax Bay

At US Tax Bay, we help businesses across the United States meet payroll and compliance standards. If your company operates in Idaho, understanding and complying with the state’s workers’ compensation laws is essential to protecting your workforce and avoiding costly penalties.

Is Workers’ Compensation Required in Idaho?

Yes.

In Idaho, every business with one or more employees is required to carry workers’ compensation insurance. This includes both full-time and part-time employees.

Which Workers May Be Excluded from Coverage?

Idaho law allows for certain exclusions. The following types of workers may not require coverage:

Domestic workers
Pilots engaged in agricultural flying
Real estate brokers and salespersons
Volunteer ski patrollers
Secondary school sports officials
Outworkers (working off-premises, typically paid by piece)
Employees covered under federal workers' compensation laws

Proper classification is critical—misclassification can result in penalties.

How to Purchase Workers’ Compensation Insurance in Idaho

Idaho employers can obtain coverage through:

Private insurance carriers
Competitive state funds — an option for high-risk businesses that cannot secure private coverage

US Tax Bay can help you evaluate your options and choose the right provider for your industry and risk profile.

Penalties for Noncompliance

Failing to provide workers’ compensation insurance in Idaho can result in:

Full liability for all medical costs, wage replacement, and legal fees
An additional 10% penalty on benefits owed
Civil fines of $2 per employee per day, or $25 per day, whichever is greater
Possible criminal misdemeanor charges

These penalties can quickly escalate, so staying compliant is not only responsible—it’s essential.

Death Benefits for Workers’ Families

If an employee dies due to a work-related injury:

Spouses may receive weekly benefits until they remarry
Up to three dependent children may receive benefits until age 18
Benefits can be paid for up to 500 weeks
Funeral expenses may be reimbursed if the death occurs within four years of the original injury

Need Help Setting Up Your Business Payroll and Compliance?

U.S. TAX BAY makes it simple for new and growing businesses!

We handle everything you need:

✔️ Payroll Tax Registration

✔️ FEIN (Federal Employer Identification Number) Registration

✔️ Secretary of State (SOS) Business Registration

✔️ Workers' Compensation Registration Support

✔️ Full-Service Payroll Management

✔️ Unemployment Insurance Account Setup

✔️ Ongoing Compliance Services

⚡ Fast Turnarounds. Expert Support. Affordable Pricing. ⚡

📞 Get a FREE Consultation Today!

🌐 Visit: www.ustaxbay.com

📧 Email: info@ustaxbay.com

Why Trust US Tax Bay?

We help companies nationwide simplify business setup and maintain compliance. Our team ensures your Idaho business stays protected, meets legal requirements, and avoids unnecessary risk.

Idaho workers' compensationworkers' comp insurance IdahoIdaho workers' compensation penaltiesIdaho workers' compensation death benefitsUS Tax Bay