Text/HTML

Required Wage and Information Returns

Electronically file W-2s, 1099s and MW-3s using the TransAction Portal (TAP). More information can be found at File Upload W-2s/1099s/MW3s.


Every employer shall, on or before January 31 of each year, file with the Montana Department of Revenue a wage and tax statement (W-2) for each employee to whom Montana wages were paid, with or without withholding and all forms 1099 with Montana withholding. An Annual Reconciliation Form (MW-3) must be submitted to support the withholding reported on the W-2 and 1099 forms. All forms 1099 without Montana withholding must be accompanied by Federal form 1096.


Forms W-2, 1099-MISC and 1099-R


Forms W-2, 1099-MISC, and 1099-R, as provided below, must be filed with the department. If the forms report Montana withholding, you must also file the annual withholding reconciliation, MW-3, by January 31 or, if you discontinue business prior to the end of the calendar year, within 30 days of discontinuance.

Employer/payer wage and information return reporting requirements

Form Number Title What to Report Amounts to Report Due Date
A copy of federal forms W-2, 1099-MISC, or 1099-R as appropriate Miscellaneous Income Rent or royalty payments (payments to nonresidents only if property located in Montana) $600 or more January 31
Distributions from a retirement, stock bonus, pension, profit-sharing, disability, annuity, IRA, Keogh, 401(k), or other similar plan, except distributions from a qualified plan to a nonresident $600 or more January 31
Other compensation for personal services not subject to Montana withholding (includes amounts paid to nonresidents for services performed in Montana) $600 or more January 31
Federal Form W-2 Wage statements Wages, tips, and other compensation with Montana tax withheld (includes amounts paid to nonresidents for services performed in Montana). All amounts January 31

Reminder

Forms W-2, 1099-R, and 1099-MISC must be filed with the Montana Department of Revenue as provided in this publication whether or not Montana tax is withheld.


New due date for filing with the Social Security Administration (SSA)

The due date for filing Forms W-2 with the SSA is now January 31, whether you file paper forms or electronically.



Additional instructions for information agents


 Text/HTML

Electronic Business Account Registration


The Montana Department of Revenue is committed to providing quality electronic services. Through these services, the department will provide accurate, confidential, secure and cost effective processing of information and payments.


Register Your Business Account with the Department of Revenue Online through our TransAction Portal (TAP)


TAP is a free service that allows you to submit your business registration online. Once the application has been processed you will receive the appropriate documentation from the department including your Montana Department of Revenue account ID. The TAP allows you to register for the following business accounts:

• Income Tax Withholding (WTH)

• Lodging and Facility Sales and Use Tax (LFT)

• Rental Vehicle Sales Tax (RVT)

• Mineral Royalty Withholding Tax (MRW)

Before you begin you will need the following information to complete your registration to access your business account online:

• Federal Identification Number as used to report to the Internal Revenue Service – required for a Withholding account.

• Social Security Number – may be used to register if you are operating as a sole proprietorship; however, it is not applicable for a Withholding account.

• If you do not have a Federal Identification Number, please visit the Internal Revenue Service at IRS to learn how to get one immediately.

• Date you are starting business – for Withholding purposes, this is the date employees started working in Montana.

• Legal business name – as associated to the identification number and as reported to the Internal Revenue Service.

• Assumed business name – the assumed business name, trade name, or d.b.a. is the name used before the public.

• Legal business address – must be a physical street address and is the legal business headquarters.

• Current mailing address – this may be a post office box or other address. This is the address where the department will send all correspondence.

• Contact name and phone number – this is the individual that will act as the entity’s representative.

• Physical location address – this is required for Lodging Facility and Rental Vehicle accounts.

Additional Contact Information

Mailing Address

Montana Department of Revenue
Citizens Services
PO Box 5805
Helena, MT 59604-5805

By Phone

Helena: (406) 444-6900

Toll Free: 1 (866) 859-2254

TDD: (406) 444-2830


 Text/HTML

Filing and Payment Information

For filing information by type, see the quick reference table below


How to Report Withholding Tax

Each employer is sent preprinted vouchers according to their filing frequency (new customers are set up monthly). Your payment must be sent in with the preprinted vouchers provided by the Department of Revenue.


At the end of the year, you will need to fill out an MW-3, Montana Annual Withholding Tax Reconciliation form, which is due January 31.


This reconciliation form is mailed in with your W2 and/or 1099.


Contact our Call Center if you need extra payment vouchers:

You can find forms and filing options in My Revenue or learn more about online payment options from our Online Services.


Due Dates and Filing Deadlines

Monthly Schedule

Withholding payments are due on the 15th day of the following month. The payment voucher must accompany all payments.

For example, amounts withheld for the month of January must be remitted on or before February 15th.

Accelerated Schedule

Withholding payments are due when your federal tax deposits are due.

• If your payday is Saturday, Sunday, Monday or Tuesday, your payment must be received on or before the following Friday.

• If your payday is Wednesday, Thursday or Friday, your payment must be received on or before the following Wednesday.

Annual Schedule

One payment is due January 31, although payments can be made more frequently if desired.

Note

For employers submitting payments on a monthly basis, please use the correct monthly voucher.

For example, if you are a monthly payer and you are remitting for the month of January you should use January 31st voucher, (not the February voucher when the tax is due).


For employers submitting payments on an accelerated basis, the pay date should be used.

For example, if your employees are paid on August 4th, then August 4th should be reported on the voucher.


Mailing Address

Mail annual statements, W2s, and 1099s to:

Montana Department of Revenue
PO Box 5835
Helena, MT 59604-5835

Annual statements, W-2s, and 1099s proccess faster when sent electronically.


Quick Reference Table

Taxes, Fees, Reports, and Licensing Form Name Filing Frequency Due Date DOR Code Filing Options Payment Options
Withholding Payments — Annual Filers Montana Withholding Tax Payment Voucher (Form MW-1) Annual January 31 WTH See Filing Options in My Revenue ACH Credit Payments
TransAction Portal
Business Tax Express
Paper Check
Withholding Payments — Monthly Filers Montana Withholding Tax Payment Voucher (Form MW-1) Monthly The 15th Day of the Following Month WTH See Filing Options in My Revenue ACH Credit Payments
TransAction Portal
Business Tax Express
Paper Check
Withholding Payment — Accelerated Filers Montana Withholding Tax Payment Voucher (Form MW-1) After Each Payday If the payday is Saturday, Sunday, Monday, or Tuesday, the payment is due on Friday.
If the payment is Wednesday, Thursday, or Friday, the payment is due on Wednesday.
WTH See Filing Options in My Revenue ACH Credit Payments
TransAction Portal
Business Tax Express
Paper Check
Annual Withholding Tax Reconciliation Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3) Annual January 31 WTH See Filing Options in My Revenue ACH Credit Payments
TransAction Portal
Business Tax Express
Paper Check
W2 — Wage and Tax Statement Federal From W-2 Annual January 31 WTH Mail or ePass File Transfer Service
Information Returns Federal Form 1099, 1098, or W-2G Annual February 28 WTH Mail or ePass File Transfer Service


 Text/HTML

Withholding Frequently Asked Questions



Q. I underpaid last year’s withholding. When will I receive a statement of account?


A. We generate statements of account after the Form MW-3 has posted for that tax year. We print and mail statements at the beginning of each month as long as there is a balance due on the account.


Q. I have an overpayment that wasn’t reflected on the return. How do I go about requesting a refund? How long will that take?


A. Requests for refund must be submitted in writing to the department. The request should be on the company’s letterhead (if applicable), include the account ID or federal ID number, and must specify the amount of the refund being requested. After we review and verify the request, the refund should reach the taxpayer in seven to 14 business days.


Q. Why am I receiving a statement of account (SOA)?


A. We usually issue SOAs when taxes go unpaid, an associated interest is due and/or when there are penalties resulting from late payments or late return filings.


Q. What do I do with the 1099s without state withholding?


A. Any forms 1099 that do not report state withholding should be sent in with federal Form 1096. Do not send in 1099s without withholding with the Form MW-3.


Q. Should North Dakota residents working in Montana have Montana or North Dakota withholding taken from their wages? Is there a reciprocal form that the employee or employer must file?


A. Montana and North Dakota have a reciprocity agreement. This means that North Dakota residents who are working in Montana and have filed the Reciprocity Exemption from Withholding form (Form MT-R) with their employer are subject to income tax withholding requirements of North Dakota. For information on taxation of Montana residents working in North Dakota, please visit the North Dakota Office of the State Tax Commissioner website at nd.gov/tax.


Q. If I have a new business and/or do not have a full look-back period, how often should I file my withholding payments?


A. Until you have established a complete look-back period (Jul 1 – Jun 30), you should file your withholding payments on a monthly basis until the department notifies you otherwise. A monthly filing frequency means that the withholding payments are due on the 15th day following the month that the wages were constructively paid and withheld on. For example, wages paid and withheld on in January are due by February 15.


Q. I accidentally sent in my federal withholding instead of my state withholding. What should I do?


A. You have three options: 1) You can request a refund of the entire amount of federal withholding paid to the state (see FAQ on refund requests), 2) request that a portion of the payment gets applied towards that period’s withholding liability and the remainder gets carried forward towards future liability amounts, or 3) request that it covers your state liability and have the rest refunded.


Q. For Montana state purposes, how can the W-4 allowances differ from the federal-accepted Form W-4 allowances?


A. There are two major differences between the state-accepted and the federal-accepted Form W-4: 1) The state does not recognize the federal child tax credit allowance. 2) The state does not recognize an exempt status. Also, be advised that any W-4s that claim more than 10 allowances must be submitted to the department for review and approval.


Q. Why do I need a Power of Attorney form?


A. A Power of Attorney form is necessary in instances when a tax preparer or any other non-owner that is not otherwise listed as a contact on the account needs access to or needs to discuss with the department any information regarding your withholding account.


Q. How do I register for a withholding account?


A. To register for a new withholding account, you will need to file a General Registration form (GenReg) via paper or electronically. To file paper, download and print the GenReg form from our website. To register electronically, visit the TransAction Portal (TAP). You will need your federal ID number and need to create a login and password.


 

Q. How do I change my withholding account address?

 

A. If you are mailing in a current year MW-3, you can write your new address on the form and check the address change box. Only use this method if you are filing an actual return. All other address change requests should be done in writing and sent to one of the following:

Email: DORAMC@mt.gov

Fax: 406-444-7723 Attn: Registration Unit


Annual Tax Withholding Statements


Filing Requirements

Individuals who earn wages by performing services in Montana are liable for Montana income tax. Every employer who resides in Montana and every non-resident employer who pays wages for services performed in Montana must withhold Montana income tax, unless the compensation is specifically exempted by law. Withholding on distributions from pensions, annuities and other deferred-type compensation is voluntary, but if an employee requests withholding on this income, the employer must comply.


Every employer shall, on or before January 31 in each year, file with the Montana Department of Revenue a wage and tax statement (W-2) for each employee to whom Montana wages were paid, regardless of whether any tax was withheld, and a copy of every Form 1099 pertaining to Montana residents. An Annual Reconciliation Form (MW-3) must accompany each batch of W-2 and 1099-R forms, or any other type of information returns that report total withholding greater than zero.


E-Filing Withholding Forms

• You can file your Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3) online through our TransAction Portal.

• You may file your W-2s and 1099s using ePass File Transfer Service.


Filing Information

• All forms W-2, 1099, 1098, 5498 and W-2G must be submitted electronically or as paper documents. Magnetic media is not an option.

Form MW-3 is an annual withholding reconciliation and is easily submitted using the TransAction Portal (TAP) or on a paper form, completed by the employer or its agent. The form should show:

• The total number of W-2 and/or 1099forms (W2s & 1099s can be submitted electronically using ePass/FTS),

• The total amount of wages and withholding, and

• The dates of each withholding payment.

This form is mailed to every registered employer during December, and additional forms may found in My Revenue. Submitters may also generate a substitute Form MW-3 themselves, provided that the layout and content are consistent with the form provided by the department.

Form MW-3 is required to be filed for any W-2 documents, whether or not any tax is withheld, and regardless of whether the W-2s are sent electronically or on paper.

Form MW-3 is required to be filed with any 1099 documents that indicate Montana tax withheld. Employers sending paper copies of 1099, 1098, 5498 or W-2G documents that don’t indicate any state withholding may use IRS Form 1096 as the transmittal form. Electronically filed 1099s with no withholding do not require a transmittal form.

• Corrections to an original W-2, 1099 or MW-3 must be submitted on a paper form.


Standards for Paper W-2/1099 Submissions

In order to properly scan and key withholding documents, the following guidelines are necessary. For the purposes of these standards, the term 1099 refers to all types of information returns, including 1097-BTC, 1098, 1099, 3921, 3922, 5498, 8935, W-2G and 1042-S. Form W-2 is sometimes referred to as a Wage and Tax Statement.

• Forms should be submitted on standardized forms that contain the same fields and wording shown on the IRS downloadable forms. The forms should include all fields even if some fields are not applicable to your employees.

• Do not submit more than one copy of each W-2 or 1099 form to the Department of Revenue.

• If forms are copied onto 8½ by 11 inch paper, do not put more than one form per sheet.

• Hand written forms need to be legible.

• The content of a field must be totally within the field.

• Every W-2 form must include the identification numbers of both the employer and the employee. These identification numbers are normally the employer’s FEIN and the employee’s Social Security or Taxpayer Identification Number.

• W-2 forms submitted on paper should be accompanied by Form MW-3. If the Form MW-3 was submitted electronically via TAP, attach a copy of the form that was printed during the submission process.

• Every information return must include two identification numbers. The titles depend on the type of return and may include payer, recipient, lender, borrower, issuer, trustee, policy holder, winner, beneficiary, participant, trustee, or something else. The identification number would normally be a FEIN or Social Security Number.

• Information returns submitted on paper should be accompanied by Form 1096 which provides contact information and the type of return(s) you are submitting.


Mailing Address

All annual statements and paper W-2s or 1099s should be sent to:

Montana Department of Revenue
PO Box 5835
Helena, MT 59604-5835


Late Filing Penalties

Annual statements postmarked after January 31 are subject to a late filing penalty of $5.00 per W-2 with a minimum of $50. (15-30-2509(2), MCA)