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Capital City
Helena
Timezone
MST
(
GMT-7
)
Paid Leave
None
Income Tax
1% - 6.75%
Employer Tax
0.17% - 1.05%
Capital City
Helena
Timezone
MST
(
GMT-7
)
Paid Leave
None
Income Tax
1% - 6.75%
Employer Tax
0.17% - 1.05%
Montana’s economy is diverse, with key industries including agriculture, energy, tourism, and healthcare.
The state’s population is relatively small, but it is growing steadily, with a robust labor force attracting remote workers and professionals.
Montana has a low unemployment rate, reflecting its expanding job market, especially in tech and tourism.
Montana's labor laws tend to favor worker rights, with clear guidelines on overtime, work hours, and meal breaks, making it an attractive state for both employers and employees.
Montana has specific employment and labor laws governing working hours, designed to protect employees’ rights and ensure fair compensation. Whether you’re hiring local employees or working with an Employer of Record (EOR), it's essential to understand the state's regulations around working hours to ensure compliance.
1. Standard Workweek and Overtime
The standard workweek in Montana is 40 hours for most non-exempt employees. Montana does not have a law regulating daily working hours, but overtime must be paid for hours worked over 40 hours per week.
2. Meal and Rest Breaks
Employees working more than 5 hours in a day must be provided a 30-minute unpaid meal break. Employees are also entitled to a 10-minute paid rest break for every 4 hours worked.
As of 2024, the minimum wage in Montana is $9.95 per hour. The minimum wage applies to most employees, with a few exceptions for tipped workers, some young workers, and employees under certain contracts. Some counties and cities within Montana may have higher minimum wages due to local ordinances.
Montana follows federal guidelines on overtime. Employees who work over 40 hours in a workweek are entitled to overtime pay at a rate of 1.5 times their regular hourly wage. Certain employees may be exempt from overtime under specific conditions. These include executive, administrative, and professional employees who meet specific salary and job duty criteria. However, most employees working in non-exempt roles are entitled to overtime pay.
Payroll taxes in Montana are deductions employers must take from employees’ wages and remit to the state. These taxes fund various state programs and services, including unemployment benefits and disability insurance. Examples of payroll taxes include:
In Montana, employees must be paid at least once every 15 days, unless the employer has an established schedule that specifies longer pay periods. Employers are required to provide employees with a written or electronic statement that shows the employee’s total hours worked and gross wages earned during the pay period. Failure to comply with these pay cycle laws may result in penalties.
Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Montana. Understanding the tax obligations for both employers and employees is crucial when operating in Montana's business landscape.
Employers in Montana are responsible for various payroll taxes, including unemployment insurance and workers' compensation insurance, as well as withholding state income taxes from employees' wages. Employer payroll contributions are generally estimated at an additional 6.5% on top of the employee salary in Montana.
Employee tax contributions are generally estimated at 6.75% of employee salary in Montana, considering the state's progressive income tax system and other payroll deductions.
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Montana does not have specific laws mandating private sector employers to offer certain employee benefits. However, employers may be required to comply with federal regulations, such as those requiring health insurance for certain large employers under the Affordable Care Act (ACA). Additionally, offering employee benefits like health insurance or retirement plans can be a competitive advantage when attracting top talent.
Competitive benefits are essential for attracting and retaining top talent in Montana. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Montana packages include:
Employers in Montana must comply with federal regulations and certain state leave laws regarding paid and unpaid leave policies.
Employers in Montana are required to comply with the federal Family and Medical Leave Act (FMLA), which provides eligible employees with up to 12 weeks of unpaid leave for certain family and medical reasons.
Montana does not have a state law mandating paid sick leave, but employers may choose to offer this as a benefit.
Montana employers must provide employees with time off to vote in elections, though this leave is not paid.
Employees in Montana are entitled to time off for jury duty without fear of retaliation. Employers may not deduct pay for time spent serving on a jury.
Montana offers job protection for employees who are members of the National Guard or U.S. Armed Forces, ensuring their job is protected during active military service.
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Payroll taxes in Montana can be submitted through the Montana Department of Revenue's online portal or via mail. Employers must withhold the necessary state income tax, unemployment insurance contributions, and other payroll taxes, and remit them to the state on a regular basis according to the established filing schedule.
Yes, Montana has a state minimum wage of $9.95 per hour as of 2024. This wage applies to most employees, though certain workers, such as those who are minors or receive tips, may have different wage structures.
No, Montana does not require employers to offer a 401k plan. However, employers who choose to provide retirement plans must adhere to federal regulations, such as the Employee Retirement Income Security Act (ERISA). Offering a 401k plan or other retirement benefits can be an attractive option for employers looking to retain skilled workers.
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