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Taxes
Montana Payroll Taxes 2026: Complete Overview for Employers
Montana flat 4.7% income tax, SUI on $43,000, and all employer obligations.
Practical, accurate resources for Montana small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Montana flat 4.7% income tax, SUI on $43,000, and all employer obligations.
How to register with Montana Department of Revenue and Montana Department of Labor and Industry as a new Montana employer.
New employer rate 1.18%, experienced range 0.13%–6.30%, wage base $43,000.
Montana minimum wage is $10.55/hr. Montana’s minimum wage is $10.55/hr, adjusted annually for inflation. No tip credit is allowed — tipped employees must receive the full minimum wage.
Semi-monthly or bi-weekly pay required. Final pay: If no written policy exists, final wages are due within 3 business days of separation. With a written policy, final wages follow the next regular payday..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Montana-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Montana new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Montana recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Montana small businesses.
Federal OT after 40 hrs/week, Montana overtime rules, exemptions, salary thresholds.