Montana employer tax information
About Montana employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Montana, you must be registered with the Montana Department of Revenue and the Montana Department of Labor and Industry so we can pay and file your state taxes.
For Montana Department of Revenue, you need your:
Montana Withholding Account Number (10 digits + WTH)
For Montana Department of Labor and Industry, you need your:
Montana UI Account Number(7 digits)
Montana Total Unemployment Insurance Tax Rate
The Montana Department of Labor and Industry typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Montana website or contact the MT Department of Labor and Industry directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Montana payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
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Withholding Tax Payment Voucher (MW-1): processes after every pay run
The withholding tax payment made by Square Payroll services as both the payment voucher and filing. This form will not appear in your Tax Forms in Square Dashboard.
Annual Withholding Tax Reconciliation (MW-3): processes annually
Wage and Tax Statement (W-2): processes annually
Department of Labor and Industry
Employer’s Unemployment Insurance Quarterly Wage Report (UI-5): processes quarterly
Department of Public Health and Human Services
New Hire Report: processes as needed
Make Montana payroll tax payments
To make Montana Withholding tax payments, you must be registered with the Montana Department of Revenue (DOR) and have an active Montana Withholding Account Number. To register, visit the DOR website. Withholding payments can be made by mail or online through the Montana TAP portal. You can apply for a Montana account through the TransAction Portal.
There are two options for making withholding tax payments.
To pay online, sign in to the TransAction Portal to make your withholding payment. Credit or debit payments made through this system will be charged a service fee.
To pay by mail, write a check payable to the Montana Department of Revenue. Include your Montana Account Number in the memo. Mail your check to:
Department of Revenue
PO Box 6309
Helena, MT 59604-6309
For questions regarding Montana Withholding Tax Payments, contact the Montana Department of Revenue at 406-444-6900 or at dorcustomerassistance@mt.gov.
To make Montana Unemployment Insurance tax payments, you must be registered with the Montana Department of Labor and Industry and have an active Montana UI Account Number. You can register online visiting the UI eServices page, or by completing the Unemployment Tax Registration form.
There are two options for making unemployment insurance tax payments.
To pay online, sign in to the UI eServices portal.
To pay by mail, write a check payable to the Montana Department of Labor and Industry. Include your Montana Account Number in the memo. your Mail your check to:
Unemployment Insurance Contributions Bureau
PO Box 6339
Helena MT 59604-6339
For questions regarding Montana Unemployment Insurance Tax payments, contact the Unemployment Services Division at 406-444-3834 or visit the Montana Unemployment Insurance website.
Make Montana payroll withholding tax filings
Quarterly withholding tax returns are due by the 15th day of the following month (for example, due on April 15 for tax withheld in March). This return reconciles the tax paid for the month with the tax withheld for the month.
To file online, use the On-Line Filing Service.
To file by mail, download the voucher and mail the return with any tax payment due to: Department of Revenue
PO Box 6309
Helena, MT 59604-6309
Quarterly reports are required even if no tax is withheld for the quarterly period.
For questions about withholding tax payments, contact the Montana Department of Revenue and at 406-444-6900 or visit the Montana Department of Revenue website.
Make unemployment insurance tax filings in Montana
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file online, use the State of Montana Department of Labor and Industry website. You can pay contributions due online by ACH debit or credit card.
To file by mail, download Form UI-5 and include the completed form with a check for any payments due. Reports filed by mail are considered filed as of the date they are placed in the mail (postmark date).
You must file quarterly returns even if no contributions are due. As long as you have an active unemployment insurance account, you must file reports every quarter by the due date.
If you believe your business no longer meets the qualifications for unemployment insurance tax, you must notify the Montana Department of Labor and Industry. In such cases, you must continue to file quarterly contribution and wage reports until you are notified that your account has been made inactive. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact Montana Unemployment Insurance Division at 406-444-3834 or visit the Montana Unemployment Insurance Division website.
Amend duplicate tax filings in Montana
The Montana Department of Labor & Industry allows you to correct any misreported payroll on your Form UI-5 submitting an amended Form UI-5. Here are some guidelines for completing your amended return:
- Log in to UI eServices for Employers to file electronically, or download a paper Form UI-5 to file by mail.
- If filing online, you can find instructions at the MT L&I website.
- If filing by mail, be sure to check the box for Amended Report on the form.
- Submit your completed return online or mail to the address listed on the form.
Submit your amended Form UI-5 as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Montana Department of Labor & Industry at 406-444-3834, or visit the Montana Department of Labor & Industry website.
The Montana Department of Revenue allows you to correct any misreported payroll on your Form MW-3 by submitting an amended Form MW-3. Here are some guidelines for completing your amended return:
- Log in to the TransAction Portal (TAP) to file electronically, or download a paper Form MW-3 to file by mail.
- If filing by mail, be sure to check the box for Amended Return.
- If you filed Form W-2C(s) with the IRS, you will need to include copies of your Form W-2C(s) with your amended Form MW-3.
- Submit your completed return online or mail to the address listed on the form.
Submit your amended Form MW-3 as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Montana Department of Revenue at 406-444-6900 or visit the Montana Department of Revenue website.
The Montana Department of Revenue allows you to correct any misreported payroll on your Form W-2(s) by submitting Form W-2C(s). Here are some guidelines for completing your corrected return(s):
- Obtain a copy of the Form W-2C(s) that were filed with the IRS.
- Submit your Form W-2C(s) online, via mail, or fax.
Submit your Form W-2C(s) with the DOR as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Wisconsin Department of Revenue at 608-266-2776 or visit the Wisconsin Department of Revenue website.
Register as a new employer in Montana
If you are a new business, register online with the Montana Department of Revenue.
If you already have a Montana Withholding Account Number, you can
find it on the TransAction portal or by contacting the agency at 406-444-6937 or DORe-Services@mt.gov.
If you are a new business, register online with the Montana Department of Labor and Industry. You can also register via phone at 800-550-1513.
If you already have a Montana UI Account Number, you can look this up on the Montana Unemployment Insurance website or by contacting the agency at 406-444-3834.
This is the sum of your Unemployment Insurance Contribution Rate and Administrative Fund Tax Rate.
If you are a new business, you are assigned a new employer rate based on the type of industry you are in. You can find your new employer Total Rate on the Montana Department of Labor and Industry website.
If you have already been assigned a rate, you can look this up on the Montana Department of Labor and Industry website or find it on the Notice of Unemployment Insurance Tax Rates mailed by the Montana Department of Labor and Industry. If you are unsure, contact the agency at 406-444-3834 or at uieservices@mt.gov.
Payroll reciprocal state agreements
A reciprocal agreement is an agreement between two states that allows employees that work in one state but live in another to request exemption from tax withholding in their employment state. This means that the employee would not have income tax withheld from their paycheck for their employment state; they would only pay income taxes to the state where they live.
A Non-Residency Certificate (or statement or declaration), is used to declare that an employee is a resident of a state which has a reciprocal agreement with their work state and therefore chooses to be exempt from withholding income tax in their work state. A non-resident employee qualifying for this exemption must complete and file this declaration with his or her employer as authorization for the employer to stop withholding state income taxes where the employee works. Employers should keep the non-residency certificate on file.
Montana has reciprocal agreements with:
North Dakota
Non-resident employees should file Form MT-R.