Updated May 11, 2022
This article will cover:
- What information OnPay needs from you
- What state and local taxes and filings OnPay handles for Montana employers
- Where you can find the tax account numbers needed
- How to authorize OnPay as a Third Party Administrator in Montana
- Paying employees in other states?
Why is this important?
For employers who pay employees in Montana, use this guide to learn what’s required to start running payroll while keeping compliant with state payroll tax regulations. Without this information, OnPay will be unable to file or deposit any Montana tax payments for your company. Any penalties and interest that accrue from missed tax payments will be your company’s responsibility.
What information OnPay needs from you
Use this checklist to make sure you’ve covered everything required to set up your account as a Montana employer so OnPay can accurately file and pay taxes on your behalf:
|
✔ |
To do: |
What is this? |
|
Make sure your business is registered with the Montana Department of Revenue |
Allows your business to file and pay taxes in Montana |
|
|
Make sure your business is registered with the Montana Department of Labor & Industry |
Allows your business to pay required unemployment insurance in Montana |
|
|
Provide OnPay with your Montana Tax ID |
The employer identification number issued by the Montana Department of Revenue |
|
|
Provide OnPay with your Montana Unemployment ID |
A 6-digit number unique to your account with the Montana Department of Labor & Industry |
|
|
Provide OnPay with your Montana Unemployment (SUI) Rate |
A tax rate you receive annually from the Montana Department of Labor & Industry |
|
|
Provide OnPay with your Montana Administrative Funding Tax Rate |
A required fixed rate fee that supports the administrative of Montana’s UI Program |
|
|
Authorize OnPay as a Third Party Administrator |
For OnPay to be able to file and pay taxes on behalf of your business, you will need to submit a Power of Attorney form. |
What state and local taxes and filings OnPay handles for Montana employers
OnPay handles the filing of all state and local taxes for businesses in Montana, including:
|
Type of Tax |
Form ID |
Form Name |
Frequency |
|
Withholding |
Form MW-1 |
Employer's Withholding Return |
Monthly/ Quarterly |
|
Form MW-3 |
Employer's Annual Reconciliation |
Quarterly |
|
|
WT (Filing) |
Transmittal for Paper Forms W-2 |
Annual |
|
|
State W2 (Filing) |
Wage and Tax Statement |
Annual |
|
|
Unemployment |
Form UI-5 |
Montana Quarterly Tax and Wage Report |
Quarterly |
|
Other |
New Hire Report (Filing) |
Montana Report of New Hires |
As required |
Where you can find the tax account numbers needed
If you are an existing employer who has previously run payroll in Montana, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.
If you are a new employer in Montana, you will need to register your business with the Montana Department of Revenue and Montana Department of Labor & Industry. This must be completed for OnPay to be able to file and pay your Montana taxes.
Withholding Tax Account Number
Existing Montana Employer:
You can find your Withholding Tax Account Number on notices received from the Montana Office of Tax and Revenue. If you cannot locate this document or account number, please call the District of Columbia Office of Tax and Revenue at (866)-859-2254 to request it.
New Montana Employer: Register with the Montana Department of Revenue
- Register with the Montana Department of Revenue. You will need the following items before you begin:
- Business Federal Employer Identification Number (FEIN) or your Social Security Number (SSN). If you do not have an FEIN for your business please visit IRS.gov to register for one.
- Secretary of State Identification Number (SOS ID). Most businesses are required to register with the Montana Secretary of State. Please visit their website at sos.mt.gov to determine if you are required to register with them.
- The online registration process can take 1-2 days. Once completed you will be notified of your tax deposit schedule.
Unemployment Account Number and Tax Rate
Existing Montana Employer:
- You can find your Unemployment Account Number on the annual Tax Rate Notice received from the Montana Department of Labor & Industry. It can also be found on your Quarterly Contribution and Wage Report).
- Your Unemployment Tax Rate can also be found on the annual Tax Rate Notice in box 2. Employers generally have a rate ranging between 0% to 6.2% for SUTA with a wage base of $38,100.
New Montana Employer: Register with the Montana Department of Labor & Industry
- Register your business with the Montana Department of Labor & Industry.
- You'll receive your account number and tax rate instantly once you have completed the online registration.
- New employers generally have a rate ranging between 1.0% to 2.3% for SUTA with a wage base of $38,100.
Administrative Funding Tax Rate
All Montana Employers:
- The Administrative Funding Tax Rate for Montana is typically 0.18%. It can also be found on your annual Tax Rate Notice in box 3.
How to authorize OnPay as a Third Party Administrator in Montana
OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax rates, and filing financial reports. To do this effectively, you will need to add OnPay as your third party agent by following the instructions in this article.
Paying employees in other states?
If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.
v6.1 21