Appendix D-Tax Setup Information > Montana State Tax

Montana State Tax

Note: For records on 5-2-2 Payroll Records that have the Payroll Type of 2—Bonus, Sage 100 Contractor calculates state income tax using the published flat-rate.

Montana does not have its own W-4 form. The employer should rely on the federal withholding exemption certificates (Federal Form W-4). Montana payroll taxes are rounded to the nearest dollar.

There is no distinction for marital status for employees who work in Montana.

Sage 100 Contractor still requires a marital status on the state tax calculation. Use the status that applies to each employee below. The status has no affect on the amount of state withholding.

Status	Description
1-Single	Single Person
2-Married	Married
3-Head of Household	Head of Household
4-Married/Separate	Married Filing Separate
5-Married/Joint	Married Joint

To set up payroll calculations on an employee for Montana State Tax:

Open 5-2-1 Employees.
Using the data control, select the employee.
Click the Calculations tab.
In the Marital Column, in the cell of the Montana Income Tax row, enter the corresponding marital status number.
In the Std Allow column, in the cell of the Montana Income Tax row, enter the number of exemptions/allowances claimed.
On the menu bar, click File, then click Save.