Montana Payroll Instructions

Montana collects state income tax-- rates changed for 2023. They've changed 6 times in the past 33 years.

Montana withholding rates are the same for single and married employees. We calculate state withholding amounts from a 'step' table that is similar to the federal payroll withholding tax tables. Starting in 2023, Goldenseal uses annual tables instead of weekly.

HINT: TurtleSoft provides free annual updates for US federal and Montana tax withholding rates, to all users of our payroll software programs.

Montana State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Open the Payroll tab on the left, and choose Employees.
  2. Locate the employee's record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Montana dependents into the State Exemptions field.
  7. Enter a Montana Tax Package into the Tax Package field, based on the employee’s W4 form. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. HINT: If you don't see Montana packages in the list, you'll need to import 2022 tax info first.
  8. Click OK.

Montana State Unemployment Tax Instructions

The Montana SUTA rate for new employers varies depending on the type of business. After three years, the tax rate is computed via a formula based on past contributions and UI claims.

In 2023, the SUTA insurance payment applies to the first $40,900 of wages.

To enter your Montana SUTA tax rate into Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open the Montana SUTA item. HINT: If you don't see Montana SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter the percentage rate that you pay into the field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the field to the right of First Adjustment.

Montana Marital Status

Enter one of the following choices in the Marital Status popup field in each employee account:

State Tax Contacts

Website

Official State Lawn Ornament

Sorry, ornament was eaten by a grizzly bear.