Montana
What You Must Know
PayCheck Connection eases the administrative burden of operating a small business. For those services that PayCheck Connection does not do for your business, we have provided a vast resource of links on the web to critical information.
Paying Taxes
While PayCheck Connection handles all your payroll taxes to ensure their timely payment, most small businesses are required to pay income tax.
Most businesses are required to pay business taxes to the Montana Department of Revenue. The following resources provide guidance to filing and paying business taxes:
Licenses and Permits
Every business needs one or more federal, state or local license(s) or permit(s) to operate. Licenses can range from a basic operating license to a very specific permit.
Regulations vary by industry, state and locality, so it's
very important to understand the licensing rules where your business is
located. Not complying with licensing and permitting regulations can lead to
expensive fines and put your business at serious risk.
Employment and Labor Laws
Your employees are your business' most important asset. Hiring and managing employees are important components of running a business, and involve many legal and regulatory issues. As an employer you'll need to know about regulations that cover hiring, wages, work hours, benefits, discrimination and harassment, and workplace safety to name a few. This guide provides a collection of resources that will help you understand federal and state labor laws, which ones apply to you, and how to comply
Employment Discrimination and Harassment
Since the Civil Rights Movement of the early 1960's, federal
and state governments have passed a number of laws protecting employees from
discrimination based on factors not directly related to the quality of an
individual's work. Employers are responsible for understanding
anti-discrimination regulations to ensure employees are protected from
discrimination and harassment on the job. In addition, employers must keep
records.
Montana Rules for Reporting New Hires
The Personal Responsibility and Work Opportunity
Reconciliation Act of 1996 requires all employers to report newly hired and
re-hired employees to a state directory within 20 days of their hire or rehire
date. Visit the Montana
New Hires Reporting page to learn how to register.
Federal Wage and Hour Laws
Here you will find information to help small businesses comply with Federal wage and hour laws.
The Fair Labor Standards Act (FLSA) establishes minimum
wage, overtime pay, recordkeeping, and youth employment standards affecting
employees.
Federal Downsizing and Layoffs Requirements
When your business has to unfortunately downsize or lay employees off, there are resources and assistance the federal government offers to businesses and employees.
The Worker Adjustment and Retraining Notification Act (WARN) protects workers, their families, and communities by requiring employers with 100 or more employees (generally not counting those who have worked less than six months in the last 12 months and those who work an average of less than 20 hours a week) to provide at least 60 calendar days advance written notice of a plant closing and mass layoff affecting 50 or more employees at a single site of employment.
The WARN Act is a federal statute; many states have enacted
similar legislation and some of those states require that the provisions of the
Act apply to businesses with less than 100 employees.
The U.S. Department of Labor has issued guides providing both workers and employers with an overview of their rights and responsibilities under the provisions of the WARN Act.
Federal Workplace Safety and Health
Employers are responsible for protecting the safety and
health of their employees. Over the last several decades, laws have been passed
to ensure workers are protected from hazards in the workplace such as the
Occupational Safety and Health Act of 1970, the Mine Safety and Health Act of
1977, and the Fair Labor Standards Act, which covers rules concerning the
employment of young workers.
This guide provides information that helps businesses comply
with the Occupational Safety and Health Act of 1970. For information on
complying with the Mine Safety and Health Act, visit the Mining and Drilling Industry
Guide; and for information on complying with child labor laws, visit the Child
Labor Law Guide.
Under the provisions of the Occupational Safety and Health
Act of 1970, as the employer, you must provide a workplace free from recognized
hazards that are causing, or are likely to cause, death or serious physical
harm to your employees regardless of the size of your business. The
Occupational Safety and Health Administration (OSHA) was established to create
standards and regulations that implement the Act.
As an employer, you must comply with OSHA standards and
regulations. The following OSHA resources will help you understand requirements
that apply to your business and how to comply.
Workers Compensation Insurance Compliance
Employers must provide workers' compensation insurance
defined in the Montana Workers' Compensation and Occupational Disease Acts.
Insurance may be purchased from insurers that are authorized in Montana,
and have workers' compensation included in their authority. Or, the department
may grant an employer the ability to self-insure its workers' compensation
liabilities if it has the requisite financial ability to pay workers'
compensation indemnity and medical benefits.
Carrier Compliance
Workers' Compensation Regulation Bureau
Employment Relations Division
PO Box 8011
Helena, MT 59604-8011
(406) 444-6532
http://erd.dli.mt.gov/wcregs/insurancecomp.asp
Montana Compliance Rules for Environmental Regulations
You may be required to obtain environmental permits and/or comply with other specific environmental regulations if your business could release pollutants into the air, land or water; or if you store, treat, or dispose of hazardous or solid wastes. Not complying with environmental regulations can lead to costly fines. Determine if your business must comply with environmental regulations and permitting requirements by visiting the following resources:
Federal Employee Benefits Requirements
There are two types of employee benefits: (1) those the
employer must provide by law; and (2) those the employer offers as an option to
compensate their employees. Examples of required benefits include social
security and workers' compensation, while optional benefits include health care
and retirement. Both required and optional benefits have both legal and tax
implications for the employer.
This guide helps employers understand what they need to do to supply employee benefits required by law, as well as steps they need to take to comply with regulations covering optional employee benefit plans.
For requirements specific to third-party employee benefit plan administrators and fiduciaries, visit
Montana Unemployment Insurance Information
Unemployment Insurance is a federal-state program developed in the 1930's.Unemployment Insurance is exactly as the name implies - insurance. Benefits are paid to lighten the burden of unemployment to the unemployed individual, to maintain purchasing power in the community and to allow laid-off employees to remain located n the area so they will be available for re-employment. The program is designed to help stabilize the economy by preventing a sharp drop in consumer spending during periods of unemployment.
Montana's Unemployment Insurance program is financed by employers through a payroll tax. Employers pay the contribution tax based on gross wages paid to their employees for services performed in Montana.
The Unemployment Insurance contribution rate varies
depending on the employer's industry and experience rate. Employers are also
liable for paying an administrative fund tax, which, for most employers, is
computed at 0.13% of taxable payroll. Governmental agencies and non-profit
organizations who elect to reimburse the Unemployment Insurance trust fund pay
the administrative fund tax at 0.05% of total payroll.