Montana Tax

For Montana residents, you specify the employee's exemptions.

Deltek Modification Date - 1/18/24

Enter the following field information for residents of Montana on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Montana’s tax calculations do not use the Status field.

Field	Description
Supplemental Wages	The tax rate for supplemental wages for bonus runs is 5%.
Exemptions	Enter the total number of exemptions claimed by the employee for federal income tax purposes on Form W-4. This figure includes: Personal exemptions for self and spouse not claimed on other Form W-4. Additional exemptions for age and blindness. Exemptions for dependents. If the employee did not submit Form W-4, enter zero in this field.
Other Exemptions	Montana’s tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

Vantagepoint automatically computes the Allowance based on the exemptions claimed by the employee.

Allowance

The Allowance is based on the number of exemptions entered in the first Exemptions field. It is determined by multiplying the number of exemptions by $2,070.

How Vantagepoint Calculates Tax

To calculate an employee's Montana State tax, Vantagepoint does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's Allowance and any 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.
5. Rounds the withheld amount to the nearest whole dollar.