Congratulations on your decision to become a new employer in Montana! You will need a few things in place before you run your first payroll. For Montana employer registration help, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
Apply for an EIN View Details
Obtain an Employer Identification Number (also known as an EIN or FEIN) for your business if you do not already have one. The simplest (and preferred way) is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
Enroll in EFTPS View Details
While it’s not required, we recommend that you register for an EFTPS (Electronic Federal Tax Payment System) account. You can easily register online. You will need to have this account to make tax payments online, or view payments made on your behalf by Patriot.
To find out more about the EFTPS, please read our article, “What Is EFTPS?”
State of Montana Tax Accounts:
Register With the Montana Department of Revenue View Details
You can register your business online using the Montana Taxpayer Access Point. This account will be needed for your income withholding tax account, also known as state income taxes (SIT).
Register With the Montana Department of Labor and Industry View Details
Montana new employers can register using the UI eServices for Employers. This account will be necessary for filing your state unemployment insurance (SUI) taxes.
Get Your SUTA Rate View Details
The Montana new employer State Unemployment (SUTA) rates are based on industry classification. Find the 2026 Montana new employer rates here.
Please visit the Department of Labor and Industry for more information about Montana unemployment employer contribution rates.
To learn more about SUTA, please read our article, “What Is SUTA Tax?”
State-mandated Insurance:
Sign up for Workers’ Comp Insurance View Details
You must have workers’ comp insurance if you have at least 1 employee in Montana. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Montana here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, ERGO NEXT Insurance. You can get a free quote with ERGO NEXT here.
Setting Up Your New Employee:
Fill Out Form I-9 View Details
Have your employees fill out the required Form I-9. For more information, check out our article, “Form I-9 In a Nutshell“
You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “What Should Be in an Employee File?”
Have Employee Fill Out Federal Form W-4 View Details
Employees need to fill out Form W-4, Employee’s Withholding Certificate for federal income taxes. For state income tax, employees must fill out Montana Employee’s Withholding Allowance and Exemption Certificate
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?“
Have Employee Fill Out Montana MW-4 View Details
In addition to the W-4 for Federal income taxes, employees should fill out Form MW-4, the Employee Withholding Exemption Certificate for the State of Montana.
Report New Hires View Details
Montana employers need to report new hires within 20 days of hire or rehire as required by law. You can report online to the Montana Child Support Enforcement Division.
For more information, please read, “What Is New Hire Reporting?”
Meet Minimum Wage Requirements View Details
Montana employers must pay their employees a minimum wage of $10.85 per hour for 2026.
You need to post the minimum wage poster where employees can read it.
Obtain Labor Law Posters View Details
Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, please read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.
