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Montana’s New Employee Withholding Allowance Certificate

BY: APA Staff | 01/17/19

New Form MW-4, Montana Employee’s Withholding Allowance and Exemption Certificate, is available from the Montana Department of Revenue (DOR). Due to federal tax reform (Pub. L. 115-97), several states are creating new state-specific employee withholding allowance certificates or updating existing forms to allow employees to more accurately adjust their state income tax withholding.

New employees and employees claiming an exemption from withholding must complete new Form MW-4. If the form is not completed, employers must withhold state income tax as if the employee is single with zero withholding allowances.

If current employees are satisfied with their state withholding, they do not need to complete new Form MW-4 unless they are claiming an exemption from withholding. The federal Form W-4, Employee’s Withholding Allowance Certificate, is an acceptable substitute to calculate state income tax withholding for existing employees.

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