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

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.

Filing Options

You may file your annual withholding reconciliation using our TransAction Portal (TAP), or by mailing the Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3) to the address shown on the form.

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.

Due Dates

The Montana Annual W-2 1099 Withholding Tax Reconciliation (Form MW-3) is due on January 31.

If the due date falls on a weekend, the form is due on the next business day.

Withholding Payment Schedule

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

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	The same as federal tax deposits: For paydays Saturday—Tuesday; payments are due the following Friday For paydays Wednesday—Friday, payments are due the following Wednesday.
Please Note: All new withholding accounts start on the monthly schedule.

 

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