15-30-204. (Temporary) Weekly, monthly, or annual payment. (1) An employer subject to the provisions of 15-30-202 and 15-30-203 whose total liability for withholdings during the preceding lookback period was $12,000 or greater shall file a return in the form and containing the information that may be required by the department and shall pay the amount required by 15-30-202 to be deducted and withheld by the employer from wages paid during the preceding payroll period. The payment must be submitted on or before the date on which federal income tax weekly withholding payments are due. On or before the last day of April, July, October, and January, the employer shall file a return in the form and containing the information required by the department. The quarterly returns for employers subject to this subsection must be used to summarize and adjust payments and to request refunds of overpayments. The employer shall also file the annual statement as required by 15-30-207.
     (2) An employer subject to the provisions of 15-30-202 and 15-30-203 whose total liability for withholdings during the preceding lookback period was less than $12,000 but greater than $1,199 shall remit a monthly payment to the department for the amount required by 15-30-202 to be deducted and withheld by the employer from wages paid during the preceding month. The monthly payment must be submitted on or before the 15th day of the month following the payment of the wages. The employer subject to this subsection shall, on or before February 28 of the year following payment of the wages, file an annual return in the form and containing the information required by the department and the annual statement required by 15-30-207. The annual returns for employers subject to this subsection must be used to summarize and adjust payments and to request refunds of overpayments.
     (3) (a) If the total amount of the tax withheld by an employer under the provisions of 15-30-202 upon the wages of all employees of any employer is less than $1,200 for the preceding lookback period, the employer shall, on or before February 28 of the year succeeding that in which the wages were paid, file an annual return in the form required by the department, together with the annual statement required by 15-30-207, and shall at the same time pay the amount required to be deducted and withheld by the employer from all wages paid during the preceding calendar year.
     (b) An employer subject to the provisions of this subsection (3) may elect to remit monthly payments. If an employer elects to make monthly payments, the employer shall remit monthly payments during the entire year and is subject to the same interest and penalty provisions as employers subject to the provisions of subsection (2).
     (c) If an employer subject to the provisions of this subsection (3) does not file the annual return required by subsection (3)(a), the employer is subject to the payment and filing provisions of subsection (2) until the department determines from the employer's subsequent filing history that the employer will file in a timely fashion.
     (4) (a) On or before November 1 of each year, the department shall notify the employers subject to the provisions of this section of the employers' remittance schedules for the following calendar year based upon the department's review of the preceding lookback period.
     (b) A new employer or an employer with no filing history is subject to the provisions of subsection (2) until the department is able to determine the employer's proper remittance schedule by a review of the employer's first complete lookback period.
     (5) If the department has reason to believe that collection of the amount of any tax withheld is in jeopardy, it may proceed as provided for under 15-30-312 with respect to jeopardy assessments of income tax.

     15-30-204. (Effective January 1, 1999) Reporting and remittance requirements.
     (1) For the purposes of this section, employers shall remit their taxes in accordance with the appropriate remittance schedule as follows:
     (a) Employers whose total liability for state income tax withholding during the preceding lookback period was $12,000 or more shall remit on an "accelerated schedule", which is the same as the employer's federal due dates for federal tax deposits.
     (b) Employers whose total liability for state income tax withholding during the preceding lookback period was less than $12,000 but more than $1,199 shall remit on a "monthly schedule" for which the remittance due date is on or before the 15th day of the month following the payment of wages.
     (c) Employers whose total liability for state income tax withholding during the preceding lookback period was less than $1,200 shall remit on a "quarterly schedule" for which the remittance due date is on or before the last day of the month following the close of each calendar quarter.
     (d) Employers who are not subject under Title 39, chapter 51, for unemployment insurance and whose total liability for state income tax withholding, or if state income tax withholding is not required, whose total liability for old fund liability tax during the preceding lookback period was less than $1,200, may remit on an "annual schedule" for which the remittance is due on or before February 28 of the year following payment of wages.
     (2) (a) Every employer is required to file a report quarterly in the form required by the department.
     (b) The report is due on or before the last day of the month following the close of the calendar quarter.
     (c) An employer who is not subject under Title 39, chapter 51, to unemployment insurance may elect to file an annual report on or before February 28 for the preceding calendar year.
     (d) An employer who has no payroll during a quarter may elect to report "no wages paid this quarter" using alternative reporting methods provided in department rules.
     (e) An employer, in addition to the scheduled reports and remittances, must file the annual report and wage statements as required by 15-30-207.
     (3) (a) Except as provided in subsection (3)(g), payments are due as required according to the remittance schedule for each employer.
     (b) If an employer subject to the provisions of subsection (1)(d) does not comply with the requirements of this section, the employer may be subject to the quarterly reporting schedule provided in subsection (2)(a) and to the quarterly remittance schedule provided in subsection (1)(c) until the department determines from the employer's subsequent filing and payment history that the employer will file and remit in a timely fashion.
     (c) On or before November 1 of each year, the department shall notify the employers subject to the provisions of this section of the employers' remittance schedules for the following calendar year based upon the department's review of the preceding lookback period.
     (d) Except as provided in subsection (3)(g), a new employer or an employer with no filing history is subject to the quarterly remittance schedule in subsection (1)(c) until the department is able to determine the employer's proper remittance schedule by a review of the employer's first complete lookback period.
     (e) An employer who is subject to the quarterly schedule in subsection (1)(c) may elect to remit payments on a more frequent basis. An employer who is on an annual schedule may elect to remit monthly or quarterly payments.
     (f) An employer who exceeds either threshold, as defined in 15-30-201(4)(b) and (4)(c), must begin withholding state income tax on or before the last day of the month following the quarter in which the wages paid exceeded the threshold requirements. The employer is subject to the quarterly remittance schedule until the department is able to determine the employer's proper remittance schedule by a review of the employer's first complete lookback period.
     (g) An employer who is not subject to unemployment insurance under Title 39, chapter 51, and whose estimated annual state income tax withholding, or if state income tax withholding is not required, whose estimated old fund liability tax, is not expected to exceed $1,199 for the calendar year may remit according to the annual schedule and report annually on or before February 28.
     (h) An employer may use alternative remittance methods in conjunction with the department's electronic remittance program in accordance with department rules.
     (4) If the department has reason to believe that collection of the amount of any tax withheld is in jeopardy, it may proceed as provided for under 15-1-703.
     (5) Each employer shall keep true and accurate payroll records containing the information that the department may prescribe by rule. Those records must be open to inspection and audit and may be copied by the department or its authorized representative at any reasonable time and as often as may be necessary. An employer who maintains its records outside Montana shall furnish copies of those records to the department at the employer's expense.

     History: En. Sec. 5, Ch. 246, L. 1955; amd. Sec. 1, Ch. 212, L. 1967; amd. Sec. 187, Ch. 516, L. 1973; R.C.M. 1947, 84-4946; amd. Sec. 1, Ch. 28, Sp. L. June 1986; amd. Sec. 2, Ch. 289, L. 1989; amd. Sec. 5, Ch. 572, L. 1995; amd. Sec. 13, Ch. 491, L. 1997.