Department of Revenue

Withholding Tax Bureau

P.O. Box 5835

Helena, MT 59604-5835

(406) 444-6900

www.state.mt.us/revenue

Montana does not require you to use a state form to calculate state income tax withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Montana cafeteria plans are not taxable for income tax calculation; taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

In Montana supplemental wages are taxed at a 6% flat rate.

You may file your Montana State W-2s by magnetic media if you choose to.

Department of Labor and Industry

Unemployment Insurance Division

1327 Locky, P.O. Box 8020

Helena, MT 59624-8020

(406) 444-6900

http://uid.dli.state.mt.us/

The State of Montana taxable wage base for unemployment purposes is wages up to $20,300.00.

Montana has optional reporting of quarterly wages on magnetic media.

Unemployment records must be retained in Montana for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

Department of Labor and Industry

Labor Standards Bureau

1805 Prospect Avenue

P.O. Box 6518

Helena, MT 59604-6518

(406) 444-5600

http://erd.dli.state.mt.us/LaborStandards/Lswagehr.htm

There is no provision for minimum wage in the State of Montana.

The general provision in Montana concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.

Montana State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

This information must be reported within 20 days of the hiring or rehiring.

The information can be sent as a W4 or equivalent by mail, fax or electronically.

There is no penalty for a late report in Montana.

The Montana new hire-reporting agency can be reached at 888-866-0327 or 406-444-9290 or on the web at http://www.dphhs.mt.gov/aboutus/divisions/childsupportenforcement/relatedtopics/employerinformation.shtml

Montana does not allow compulsory direct deposit.

Montana requires the following information on an employee's pay stub:

Montana has no statutory provision on how often employee must be paid.

Montana requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed ten business days after wages become due; next pay period if timesheets are late.

Montana payroll law requires that involuntarily terminated employees must be paid their final pay immediately, unless employer's written policy extends the time period to the next regular payday or 15 days from date of termination, whichever is earlier. Voluntarily terminated employees must be paid their final pay by the next regular payday or 15 days from date of separation, whichever is earlier.

There is no provision in Montana law concerning paying deceased employees.

Escheat laws in Montana require that unclaimed wages be paid over to the state after one year.

The employer is further required in Montana to keep a record of the wages abandoned and turned over to the state for a period of 10 years.

Montana payroll law mandates that there is no tip credit of minimum wage.

In the Montana payroll law there is no provision covering required rest or meal periods.

There is no provision in Montana law concerning record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines.

Child Support Enforcement Division

Department of Public Health and Human Services

3075 N. Montana Ave., Ste. 112

P.O. Box 202943

Helena, MT 59620-2943

(406) 442-7278

http://www.dphhs.mt.gov/index.shtml

Montana has the following provisions for child support deductions:

Please note that this article is not updated for changes that can and will happen from time to time.