Montana State Tax Routine (MTTX)

Montana State Tax Routine Special Routine Processing utilizes the following steps:

Line 1	Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI).
Line 2	Determine the employee’s allowance amount*.
Line 3	Determine the employee’s taxable amount by subtracting Line 1 from Line 2.
Line 4	Using the Marginal Tax Rates (DEDX) entries for Montana State Tax deduction, compute tax on the Taxable Amount (Line 3).
Line 5	Divide the amount on Line 6 by the number of payroll periods in a year to determine the employee’s Montana Withholding Tax for the pay period. Note: As part of this step, the system rounds of the result to the nearest dollar amount.

* Determine the Annual Allowance Amount

Multiply the State tax allowance count provided in TAX or TAXS with the Annual exemption amount updated in the TAXP page.

Note: The Montana State Tax Routine is only available for sites that utilize the Next Generation Payroll service.

Data Setup Considerations

Sites need to ensure that they have implemented the following Business Process and Data Setup changes at their site prior to using the Montana Tax Routine.

The Tax Parameters (TAXP) Setup for Montana State Tax Deductions

The Annual Exemption Amount field is the Personal Exemption Amount for the specified Marital Status.

State Tax Enrollment (TAXS) enrollment (Note: This only applies to employees enrolled in the State Tax Class (TAXCS) that includes a Montana State Tax Deduction).

The State Tax Allowance field is the allowance count.