Montana Wage Withholding Returns and Payments

Overview

Wage withholding is the money withheld by an employer from an employee’s paycheck that is used to pay part of an employee's income tax liability. This is the employee's money, held in trust by the employer until paid to the state.

 

Filing Requirements

Every year that you have an open Montana withholding account, you must file a Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3) return.

Your Form MW-3 must also include:

  • A federal Wage and Tax Statement (Form W-2) for each employee you paid Montana wages, even if you did not withhold any tax
  • All Forms 1099 with Montana state withholding

Important: 

  • Forms W-2 (with and without withholding) and Forms 1099 (with state withholding) are required with your Form MW-3.
  • The Montana Department of Revenue does not receive these forms from the Social Security Administration.

Due Dates

Report or Form Type Due Date
Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3) January 31
All Forms W-2 (with or without withholding) January 31
Forms 1099 with Withholding January 31
Wage Withholding Payments See the Payment Schedule
Forms 1099 without Withholding See Forms 1099 Without Withholding
  • If the due date falls on a weekend, the form is due the next business day.

Withholding Payments and Reporting Schedules

Your withholding payments are based on your your withholding schedule. Your withholding payment due date may change based on your payroll.

Any employer in Montana who pays wages for services performed in Montana is required to pay Montana wage withholding on behalf of their employees.

The amount to withhold can be found in the Montana Withholding Tax Table and Guide.

  • Lookback Period: Withholding payments are due based on the total amount withheld during the lookback period. The lookback period is the 12-month period from July 1 of the preceding year to June 30 of the current year.
  • Annual Review: The department completes a review of a taxpayer’s lookback period to determine if the taxpayer’s reporting and payment schedule will change for the next calendar year. If the payment schedule will change in the following year, the department will notify the taxpayer by November 1 of the current year to inform the taxpayer of their new reporting and payment requirements.
  • New Businesses: Payments are due by the 15th day of the following month for new businesses.
  • If no wages/distributions: If you did not have employees or make distributions for the entire duration of the lookback period, follow the chart below unless notified by the department.

Total Withholding Paid Schedule Payments Due
Up to $1,199 Annual January 31
$1,200—$11,999 Monthly The 15th of the following month. Example: January withholding is due February 15.
$12,000 or more Accelerated Same as federal tax deposits:
  • Paydays Saturday–Tuesday: due the following Friday
  • Paydays Wednesday–Friday: due the following Wednesday
  • All new withholding accounts start on the monthly schedule.
  • You may make payments more frequently than defined by your payment schedule.

Payment Options

You may make withholding payments using:

Filing Options

You may file your annual withholding reconciliation:

Forms 1099 Without Withholding

You do not need a Montana withholding account if you are submitting Forms 1099 without withholding.

Truncated Forms W-2 and 1099

As a safeguard against identity theft, the Internal Revenue Service (IRS) allows payers to truncate, or shorten, the payee's taxpayer identification number (SSN, FEIN, or ITIN) on the employee's or payee's copy of the Form W-2 or 1099.

Montana does not accept Forms W-2 or 1099 with truncated Social Security Numbers or Federal Employer Identification Numbers. 

If forms with truncated identification numbers are incorrectly submitted to the Montana Department of Revenue, we will request that you resubmit them using the correct format. If not resubmitted by the due date, late filing penalties may be assessed.

Amending Your Annual Reconciliation

If you find an error on your Form MW-3 after the year end, you must:

  • File an amended Form MW-3,
  • Pay any additional tax due, and
  • File corrected Forms W-2 or 1099 for each affected individual.

Additional Resources

For more information about Montana withholding tax and the withholding tax tables see the Montana Employer and Information Agent Guide.