Annual Tax Withholding Statements
Filing Requirements
Individuals who earn wages by performing services in Montana are liable for Montana income tax. Every employer who resides in Montana and every non-resident employer who pays wages for services performed in Montana must withhold Montana income tax, unless the compensation is specifically exempted by law. Withholding on distributions from pensions, annuities and other deferred-type compensation is voluntary, but if an employee requests withholding on this income, the employer must comply.
Every employer shall, on or before February 28 in each year, file with the Montana Department of Revenue a wage and tax statement (W-2) for each employee to whom Montana wages were paid, regardless of whether any tax was withheld, and a copy of every Form 1099 pertaining to Montana residents. An Annual Reconciliation Form (MW-3) must accompany each batch of W-2 and 1099-R forms, or any other type of information returns that report total withholding greater than zero.
Filing Methods
- Beginning with tax year 2006 all forms W-2, 1099, 1098, 5498 and W-2G must be submitted electronically or as paper documents. Magnetic media is no longer an option.
- Form MW-3 is a paper reconciliation form, completed by the employer or its agent, showing the total number of W-2 and/or 1099 forms, the total amount of wages and withholding, and the dates of each withholding payment. This form is mailed to every registered employer during December, and additional forms may be requested by calling the department at (406) 444-6900 or by download from the State website. Submitters may also generate a substitute Form MW-3 themselves, provided that the layout and content are consistent with the form provided by the department.
- Form MW-3 is required to be filed for any W-2 documents, whether or not any tax is withheld, and regardless of whether the W-2s are sent electronically or on paper.
- Form MW-3 is required to be filed with any 1099 documents that indicate Montana tax withheld. Employers sending paper copies of 1099, 1098, 5498 or W-2G documents that don’t indicate any state withholding may use IRS Form 1096 as the transmittal form. Electronically filed 1099s with no withholding do not require a transmittal form.
- Corrections to an original W-2 or MW-3 must be submitted on a paper form.
More information about electronic filing
Mailing Address
All annual statements and paper W-2/1099 should be sent to:
Montana Department of Revenue
P.O. Box 5835
Helena MT 59604-5835
Penalties for late filing
Annual statements postmarked after February 28 are subject to a late filing penalty of $5.00 per W-2 (minimum $50) in accordance with Montana Code Annotated, Title 15, Section 15-30-209(2).
