Withholding Requirements:

• Register as employer by filing Form UI/R-1 (Employer Registration) or online by clicking here
• Employee’s Withholding Allowance Certificate - Federal W-4
• Withholding Method = formula
• Supplemental Rate = Withhold at 6% or add to regular wages for current or preceding payroll period and withhold on total.

Local Taxes:

None

State Unemployment Insurance (SUI):

Schedule I is in effect adn there is also a 0.13% Admin Fund Tax (AFT) for employers in Rate Class 1 and 2 and a 0.18% AFT for the other experiance-rated employers.

• Wage base is $33,000 for 2019 and $32,000 for 2018
• Contribution rates range from .13% to 6.30% for 2019
• New agricultural, forestry, and fishing employers use 1.58%
• New mining employers use 1.28%
• New construction employers use 2.58%
• New manufacturing employers use 1.18%
• New transportation, communications, and public utilities employers use 1.28%
• New wholesale trade employers use 1.18%
• New retail trade employers use 1.18%
• New finance, insurance, and real estate employers use 1.18%
• New services employers use 1.18%
• Non-classifiable new employers use 2.58%

These rates include a .18% Administrative Fund tax.

State Disability Insurance (SDI):

None

State Labor Laws:

Minimum Wage - $8.50 per hour effective 1/1/19.
Termination Pay - Fired - at once. Quit - next regular pay day for the period in which the employee was separated, or 15 days, whichever occurs first.

New Hire Reporting:

Employers must report hiring, rehiring, and return to work within 20 days on Form W-4, New Hire Report or by telephone to:
New Hire Reporting Program
P.O. Box 8013
Helena, Mt 59607-8013
Phone: 888-866-0327
Fax: 406-444-0745

To report online click here

Remit Withholding for Child Support to:

State of Montana 
Department of Public Health & Human Services
Child Support Enforcement Division
Wage Withholding Unit
PO Box 8001
Helena, MT 59604-8001
406-442-7278

To report online click here

Reciprocal States:

North Dakota