Montana New Employer Registration: Step-by-Step Guide

Last reviewed: July 2026

When you hire your first employee in Montana, you trigger a series of registration requirements at the federal and state level. Missing any of these steps can delay your first payroll run or draw penalties later. Here's the order that gets you set up correctly the first time.

Registration Overview

Here's a checklist of what every new Montana employer needs:

• ☑ Federal Employer Identification Number (EIN)
• ☑ Montana withholding account (Montana Department of Revenue)
• ☑ Montana SUI account (Montana Department of Labor and Industry)
• ☑ Workers' compensation insurance
• ☑ New hire reporting setup
• ☑ Payroll system or software

Step 1: Get Your Federal EIN

Your Employer Identification Number (EIN) is your federal tax ID. You need it for everything — federal tax filings, state registrations, opening a business bank account, and running payroll.

Apply online at IRS.gov/EIN. It's free and you receive your EIN immediately.

Step 2: Register with Montana Department of Revenue

Visit the Montana Department of Revenue website to register for a state withholding account. This lets you withhold Montana state income tax from employee paychecks and remit it to the state. New hires will also need to complete Form MW-4, Montana's withholding certificate, alongside their federal W-4 — check any withholding scenario with our W-4 helper.

From the Payroll Desk

Don't wait until your first payroll to register. State registrations can take a week or two to process, and you can't legally withhold or remit tax without an account number.

Step 3: Register for SUI

Register for a State Unemployment Insurance account through the Montana Department of Labor and Industry, Unemployment Insurance Division. You'll be assigned:

• An employer account number
• Your initial SUI rate, based on industry classification (roughly 1.00%–2.00% plus a 0.18% Administrative Fund Tax for new employers in 2026)
• Quarterly filing requirements

SUI is an employer-paid tax on the first $47,300 of each employee's wages for 2026. See our Montana SUI Rates 2026 guide for details.

Step 4: Workers’ Compensation Insurance

Most Montana employers are required to carry workers' compensation insurance, which covers employees who are injured on the job. Montana's threshold is stricter than many states — coverage is generally required from the first employee you hire, with few exceptions.

You can obtain workers' comp through private insurance carriers, a licensed agent, or the Montana State Fund. Compare quotes across a couple of carriers to find the best rate for your industry classification.

Step 5: New Hire Reporting

Federal and Montana law require you to report every new hire within 20 days of their start date, through the Montana New Hire Reporting Program. This information helps enforce child support orders and catches unemployment fraud. See our New Hire Reporting guide for the federal side of this requirement.

Step 6: Set Up Payroll

With registrations complete, decide how you'll actually run payroll. Many one- or two-person Montana businesses handle it manually at first, then move to software once the state and federal filing calendar gets hard to track by hand. Whichever route you choose, keep your MW-4s, EIN confirmation letter, and SUI rate notice together — you'll reference all three every pay period.

Frequently Asked Questions

Where do Montana employers register for unemployment insurance?

Montana employers register for UI (unemployment insurance) with the Montana Department of Labor and Industry's Unemployment Insurance Division. Registration is completed online through the agency's employer portal before running your first payroll.

Where do Montana employers register for state income tax withholding?

Montana employers register for state income tax withholding with the Montana Department of Revenue. You will receive a state withholding account number used on all tax filings and deposits.

Do I need to register before running my first payroll in Montana?

Yes. You must have your Montana employer account numbers before filing or depositing state payroll taxes. Register with the Montana Department of Revenue and the Montana Department of Labor and Industry as soon as you know you'll hire your first employee.