How do I register as a household employer in Montana?

Start with a federal EIN, then register with Montana for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Montana's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Montana income tax at your nanny's request, register separately with the state revenue department for a withholding account.

What payroll taxes does Montana charge for a household employee?

Federal FICA and FUTA, Montana SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Montana SUTA: 0% - 6.2% plus Montana's separate administrative fund tax on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4.

What are Montana's minimum wage and overtime rules for nannies?

At least $7.25 an hour for a nanny in Montana. Montana has its own minimum wage of $10.85/hour, but it does not cover nannies, so the federal floor governs instead. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: MCA 39-3-406(1).

Can I require my nanny to use direct deposit in Montana?

Yes. Montana allows direct deposit for household employees. Federal Regulation E still applies: your nanny must be free to choose their own bank, or you offer another payment method. Get a written, signed authorization before the first deposit, even though Montana does not strictly require one.

What records do I need to keep for a Montana household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Montana follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

All State Guides

Montana Nanny Tax Guide

Montana has a two-bracket income tax (4.7% up to $95,000, 5.65% above) and no disability or paid leave requirements. The relatively high SUI wage base means taxes are paid on more of employee wages.

Montana household employer quick facts

Applies in Montana

State income tax withholding
State unemployment

Not in Montana

Disability insurance
Paid family leave

Minimum Wage

$7.25/hour

That is the federal floor, because the state's own rate does not cover nannies.

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SUTA Rate Range

0% - 6.2%

New employers: 1.1% on the first $47,300 (2026). Montana Department of Labor and Industry

Key things to know

Progressive state income tax (4.7% - 5.65%)
Montana's $10.85/hour minimum does not cover nannies. The federal $7.25/hour floor applies.
No disability or paid leave requirements
High SUI wage base ($47,300)

Montana Employer Requirements

State Income Tax

Montana uses a two-bracket income tax: 4.7% on taxable income up to $95,000 and 5.65% above. Montana starts from federal taxable income (no separate state deduction).

State Unemployment Insurance

Employers pay SUI tax on the first $47,300 of wages. New employer rate is 1.1%, with rates ranging from 0.0% to 6.2% based on experience. Montana adds a 0.18% Administrative Fund Tax on the same wages, so a new household employer pays 1.28% in total.

Workers' Compensation

Montana doesn't require workers' compensation for household employers, since domestic workers are excluded from the state's coverage mandate. It's still worth considering: it protects your employee if they're injured at work, and protects you from potential liability.

Montana household employer questions

What will it cost?

Wondering what you'll actually owe as a Montana employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Montana tax agency, IRS Publication 926

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Montana Nanny Tax Guide

Montana household employer quick facts

Montana Employer Requirements

State Income Tax

State Unemployment Insurance

Workers' Compensation

Montana household employer questions

What will it cost?

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