Montana · 2026 and 2027
Montana employer payroll taxes and employee cost: SUTA 1%–2% on $47,300
In Montana, a $50,000 employee costs a new employer about $62,501 a year in 2026: 25% on top of pay for payroll taxes, unemployment insurance, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Montana
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a Montana employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Montana unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Montana unemployment insurance (SUTA)
1%–2% of $47,300, by industry
New employers pay the rate Montana publishes for their industry: 1% for most industries, up to 2% (Unclassified Establishments), on the first $47,300 of each employee's pay in 2026. Pick yours in the calculator. After two to three years the rate follows your own claims history.
per Montana Department of Labor & Industry, Unemployment Insurance Division, as of Jan 1, 2026
- Administrative Fund Tax
0.18% of $47,300
An employer-paid surcharge billed with unemployment insurance: $85 per employee a year.
per Montana Department of Labor & Industry, Unemployment Insurance Division, as of Jan 1, 2026
- State paid leave and disability premiums
None
Montana has no employer-paid family leave or disability insurance premium among the state programs we track.
- Paid sick leave
No state requirement
Montana has no statewide paid sick leave requirement among the laws we track; city rules may apply.
- Workers' compensation
$1.34 per $100 of payroll
Index rate for a standard mix of job classes: rank 14 of 51 (1 = highest) and 122% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$7,406 single / $17,022 family
Average employer contribution per enrolled employee a year at Montana private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$10.85 in 2026, $11.20 in 2027
Montana's rate since Jan 1, 2026. Businesses not covered by federal law with gross annual sales of $110,000 or less may pay $4.00. No tip credit. From January 1, 2027: $11.20.
per Montana Department of Labor & Industry, as of Jan 1, 2026; per Montana Department of Labor & Industry, as of Jan 1, 2027
Checked against each source on Oct 23, 2026. Press image of these numbers, free to use with attribution: PNG · SVG.
Two worked examples in Montana
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,080 hours | $50,000 |
|---|---|
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $47,300 | $473 |
| Administrative Fund Tax0.18% of $47,300 | $85 |
| Workers' compensation (state index rate)$1.34 per $100 of payroll | $670 |
| Health insurance (single coverage, state average)average employer contribution | $7,406 |
| Total cost a year | $62,501 |
25% on top of pay · $30.05 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,080 hours | $37,440 |
|---|---|
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $37,440 | $374 |
| Administrative Fund Tax0.18% of $37,440 | $67 |
| Workers' compensation (state index rate)$1.34 per $100 of payroll | $502 |
| Health insurance (single coverage, state average)average employer contribution | $7,406 |
| Total cost a year | $48,696 |
30.1% on top of pay · $23.41 per hour worked
What changes for Montana employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
- Montana's minimum wage becomes $11.20 an hour on January 1, 2027. per Montana Department of Labor & Industry, as of Jan 1, 2027
Not announced yet
- 2027 unemployment insurance wage base: not announced yet; 2026: $47,300. per Montana Department of Labor & Industry, Unemployment Insurance Division, as of Jan 1, 2026
- 2027 new-employer unemployment rate: not announced yet; 2026: 1%. per Montana Department of Labor & Industry, Unemployment Insurance Division, as of Jan 1, 2026
- 2027 new-employer rate, construction: not announced yet; 2026: 2%. per Montana Department of Labor & Industry, Unemployment Insurance Division, as of Jan 1, 2026
- 2027 administrative Fund Tax: not announced yet; 2026: 0.18%. per Montana Department of Labor & Industry, Unemployment Insurance Division, as of Jan 1, 2026
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in Montana?
About $62,501 a year in 2026 for a $50,000 employee of a new Montana employer with 10 staff: $12,501 above pay, of which $7,406 is health coverage, $670 workers' comp and $473 Montana unemployment tax. At $18 an hour full time: $48,696.
What payroll taxes do employers pay in Montana?
Montana payroll taxes on a $50,000 employee come to $4,425 a year for a new employer: $473 of Montana unemployment insurance at 1% on $47,300, $85 of Administrative Fund Tax, $3,825 of Social Security and Medicare and $42 of FUTA.
What is the Montana SUTA rate for new employers in 2026?
It depends on the industry: Montana publishes 10 new-employer rates for 2026, 1% for most industries and from 1% to 2% (Unclassified Establishments), on the first $47,300 of each employee's pay. Pick yours in the calculator.
Is paid sick leave required in Montana?
No statewide requirement in Montana among the laws we track.
How much does workers' comp cost in Montana?
$1.34 per $100 of payroll at Montana's index rate (rank 14 of 51, 122% of the median): about $670 on $50,000 of pay.
How much do Montana employers pay for health insurance?
$7,406 a year per employee with single coverage and $17,022 with family coverage, the average Montana private-employer share of $8,899 and $21,989 premiums in 2025.
More employer cost pages
States with a similar employer cost
Minimum wage in Montana
Data and rules for every state
Terms on this page
Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.