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Payroll and Benefits Guide United States – Montana

Last updated: Mar 29, 2023

Currency
United States Dollar (USD)
Employer Taxes
13.78% - 19.90%
Payroll Frequency
Monthly/Semi-monthly
Employee Costs
8.55%
Capital
Helena
Date Format
mm/dd/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
0.0% – 6.12% Unemployment Insurance (State) applied on Salaries up to 43,000 USD
6.20% FICA Social Security (Federal), applied on Salary up to 168,000 USD
1.45% FICA Medicare (Federal)
0.60% – 6.00% FUTA (Federal Unemployment Tax Act)  The FUTA tax rate is 6.0% with a taxable wage base of 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to 0.6%.
13.78% – 19.90% Total Employment Cost
Employee Employee Payroll Contributions
6.20% FICA Social Security (Federal), applied on Salary up to 168,000 USD
1.45% FICA Medicare (Federal)
0.90% Additional tax on earnings over 200,000 USD
7.65%-8.55% Total Employee Cost
State Employee Income Tax
State Tax – Single
1.0% Up to 3,600 USD
2.0% 3,600 USD to 6,300 USD
3.0% 6,300 USD to 9,700 USD
4.0% 9,700 USD to 11,300 USD
5.0% 11,300 USD to 16,800 USD
6.0% 16,800 USD to 21,600 USD
6.75% Over 21,600 USD
Married taxpayers filing jointly
1.0% Up to 3,600 USD
2.0% 3,600 USD to 6,300 USD
3.0% 6,300 USD to 9,700 USD
4.0% 9,700 USD to 11,300 USD
5.0% 11,300 USD to 16,800 USD
6.0% 16,800 USD to 21,600 USD
6.75% Over 21,600 USD
Standard Deduction and Personal Exemption
Single 2,260 USD- 5,090 USD
Couple /Married Filing Jointly 4,520 USD- 10,180 USD
Personal exemption
Single 2,960 USD
Couple /Married Filing Jointly 5,920 USD
Dependent 2,960 USD
Federal Employee Income Tax
Federal Tax – Singles
10.00% Up to 11,600 USD
12.00% 11,601 USD to 47,150 USD
22.00% 47,151 USD to 100,525 USD
24.00% 100,525 USD to 191,950 USD
32.00% 191,950 USD to 243,725 USD
35.00% 243,725 USD to 609,350 USD
37.00% 609,350 USD or more
Federal Tax – Married, filing jointly
10.00% Up to 22,000 USD
12.00% 22,001 USD to 89,450 USD
22.00% 89,451 USD to 190,750 USD
24.00% 190,751 USD to 364,200 USD
32.00% 364,201 USD to 462,500 USD
35.00% 462,501 USD to 693,750 USD
37.00% 693,751 USD or more
Federal Tax – Heads of Households Federal Tax – Heads of Households
10.00% Up to 15,700 USD
12.00% 15,701 USD to 59,850 USD
22.00% 59,851 USD to 95,350 USD
24.00% 95,351 USD to 182,100 USD
32.00% 182,101 USD to 231,250 USD
35.00% 231,251 USD to 578,100 USD
37.00% 578,101 USD or more
Standard Deduction and Personal Exemption
14,600.00 USD Single
29,200.00 USD Married Filing Jointly
21,900.00 USD Head of Household

Minimum Wage

General

Montana does have a state minimum wage law; for employers with annual sales in excess of 110,000 USD, the rate is 9.95 USD an hour.

There are also other minimum requirements:

Minimum Cash wage (tipped employee)                                 9.95 USD

Maximum Cash wage (tipped employee)                                9.95 USD

For employers with annual sales of less than 110,000 USD, the minimum wage rate is 4.00 USD an hour.

Payroll

Payroll Cycle

In general, employees in Montana are paid either semi-monthly or monthly, with payments on set dates as stipulated in their contract.

13th Salary

There is no legislation for 13th-month payments in Montana.

Working Hours

General

A standard working week in Montana is a maximum of 40 hours per week, 8 hours per day.

Overtime

Montana adheres to the Fair Labor Standards Act (FLSA), and work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay. If employees are scheduled to work on weekends or rest days, no additional payment is required. However, should an employer request an employee to work in exceptional circumstances on these days, overtime is paid at the rate of 150% of the regular pay.

Leave

Annual Leave (vacation)

Montana does not have any state statute governing the amount and payment of vacation time; however, it is common for employers to offer paid or unpaid vacation leave to their employees. The leave must comply with employment law and must be stipulated in the collective bargaining agreement.

Public Holidays

Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.

Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.

Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.

Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day
15 Jan 2024 Monday Martin Luther King Jr. Day
19 Feb 2024 Monday Presidents Day
27 May 2024 Monday Memorial Day
19 Jun 2024 Wednesday Juneteenth Independence Day
4 Jul 2024 Thursday Independence Day July
2 Sep 2024 Monday Labor Day
14 Oct 2024 Monday Columbus Day
11 Nov 2024 Monday Veterans Day
28 Nov 2024 Thursday Thanksgiving Day
25 Dec 2024 Wednesday Christmas Day

 

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA), which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons (maternity leave, serious illnesses, or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

FMLA eligible employees are entitled to:

  • 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • Care for the employee’s spouse, child, or parent who has a severe health condition.
  • Leave in the event of a serious health condition that makes the employee unable to perform the essential functions of their job.
  • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

Or

  • 26 working weeks of leave during a single one-year period to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

Maternity Leave

See Sick Leave above.

The Federal FMLA provides qualified employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons, including maternity leave.

In Montana, pregnant employees are entitled to a reasonable leave of absence (generally 6 to 8 weeks post-delivery) and are determined case by case.

Paternity Leave

See Sick Leave above.

The Federal FMLA provides qualified employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons, including paternity leave.

Parental Leave

See Sick Leave above.

The federal FMLA provides qualified employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons, including parental leave.

Other Leave

Montana law requires all employers to provide their full-time employees job-protected but unpaid leave for their duty as jurors or as a witness in a case, responding to a subpoena, or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.

In addition to the federal law USERRA, Montana law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the Public Health Service, and any other category of persons designated by the president in a time of war or emergency.

 

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship, and employment is stipulated “at will.” This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds. In such cases, the parties negotiate the foundations for a “just cause” termination case-by-case.

Notice Period

In Montana, most employees are employed “at-will,” and either party can terminate the employment relationship without notice. In Montana, payout of unused vacation time is not required by law. Still, generally, employers will pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation; there is no official notice period. In general practice, the notice period is linked to the number of years’ service.

  • Between 1 and 6 months  :              1 week
  • Between 6 months and 2 years :    2 weeks
  • Between 2 and 4 years :                   4 weeks
  • Between 4 and 7 years :                   8 weeks
  • Between 7 and 8 years :                   9 weeks
  • Between 8 and 9 years :                  10 weeks
  • Between 9 and 10 years  :                11 weeks
  • More than 10 years’ service :          12 weeks

In mass dismissal cases, the employer must follow the Worker Adjustment and Retraining Notification Act (WARN Act) and give 60 days’ notice to impacted employees.

Severance Pay

Except as otherwise provided in an Employment Contract or Collective Bargaining Agreement, employers need not make severance payments to terminated employees. Employers who offer severance need to have the provisions within the employee’s contract; both parties must agree to this. Many employers choose to provide severance payments linked to the employee’s length of service.  Most common in Montana is one week pay for every year of service.

Probation Period

No legal provision governs a formal “trial/probation period.” However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days and a six-month probation period.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee. If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement). To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request; the types of visas include:

  • H-1B – for applicants with a college degree hired to do specialized work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialized knowledge.
  • 0 – for people with extraordinary ability in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1 – highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
  • E-2 – for those with advanced degrees or exceptional ability.
  • E-3 – for skilled workers and professionals, as well as unskilled workers.
  • E-4 – members of certain immigrant groups.
  • E-5 – immigrant investors in US companies (substantial investment).

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States. The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

VAT

General

Montana has a zero-sales tax rate.

Stay up to date on payroll & employment law changes

Version History

February 10, 2022
Montana state minimum wage increased to 9.20 USD an hour.
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
Minimum wage: rises to $8.75 per hour.
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Payroll and Benefits Guide in United States – Montana

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Payroll and Benefits Guide
in United States – Montana

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

United States – Montana
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Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day
15 Jan 2024 Monday Martin Luther King Jr. Day
19 Feb 2024 Monday Presidents Day
27 May 2024 Monday Memorial Day
19 Jun 2024 Wednesday Juneteenth Independence Day
4 Jul 2024 Thursday Independence Day July
2 Sep 2024 Monday Labor Day
14 Oct 2024 Monday Columbus Day
11 Nov 2024 Monday Veterans Day
28 Nov 2024 Thursday Thanksgiving Day
25 Dec 2024 Wednesday Christmas Day