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.
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:
Important!
Your Forms W-2 (with and without withholding) and Forms 1099 (with state withholding) are required with your Form MW-3.
Please note, we do not receive these forms from the Social Security Administration.
You do not need a Montana withholding account if you are submitting Forms 1099 without withholding.
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.
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.
If you find an error on your Form MW-3 after the year end, you must:
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 |
$12,000 or more |
Accelerated |
The same as federal tax deposits: |
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.