Tax Information
Form W-2 - for State of Montana Employees
The W-2 Wage and Tax Statement is an annual summary issued to each employee which lists the employee's taxable income and the amount and type of taxes that were withheld from paychecks during the previous calendar year.
For 2011, employers are required to issue W-2 forms to their employees by February 1st. The State of Montana is not responsible for a W-2 form being delayed or lost in the mail. All address changes must be reported to your agency payroll staff or changed in Employee Self Service as soon as possible to avoid delayed or misdirected W-2's, as the US Postal Service WILL NOT forward W-2's (or paychecks).
If you have not received your W-2 by February 13, 2012 you can request a reprint online via SABHRS Self-Service, or by contacting your agency payroll staff. The payroll staff can request a duplicate W-2 if it has not been returned in the mail.
The first day any W-2's will be reprinted is February 13 to allow for adequate delivery time.
If you need help deciphering the information on your W-2, contact Central Payroll at 444-3871. Leon Richmond or Patty Huxley will be happy to help you.
Form 1099-R - for State of Montana Retirees
Tax documents for retirees are issued from the Public Employee Retirement Administration or the Teacher's Retirement System, depending on your retirement plan. If you have questions on your 1099-R or need one reissued, please contact your retirement administration:
Public Employee Retirement Administration (MPERA) 100 N Park Avenue Suite 200 PO Box 200131 Helena MT 59620-0131 (406) 444-3154 or toll free 1-877-275-7372 mpera@mt.gov
Montana Teacher's Retirement System PO Box 200139 Helena MT 59620-0139 (406) 444-2441
Tax Links and Forms
Information about filing individual Federal and State tax returns, along with downloadable tax forms, instructions and publications, can be accessed via the Web at the following sites:
- Federal Information and Forms (IRS): www.irs.gov
Forms such as W-4, W-5, W-4 Calculator, and other information for employees can be found on this site. - State Information and Forms: http://mt.gov/revenue
The Department of Revenue has Downloadable Tax Forms, information about Unclaimed Property and other resources for individuals and businesses.
Frequently Asked Tax Questions
How do I change the amounts of my federal and state income tax withholding on my paycheck?
If you have access to Employee Self Service, you can make changes to both your State and Federal tax withholding. Your Agency payroll office also has the form necessary to change the amounts. Filling out a W-4 form applies to both the federal and the state withholding, unless otherwise noted.
When the number of allowances claimed is increased, the amount withheld for federal income tax is reduced. When the number of allowances is reduced, the amount withheld is increased. You can increase the amount of taxes withheld by specifying a dollar figure as an "Additional Amount".
When do I need to complete a new W-4 or W-5 form?
A new W-4 form needs to be completed each year if you are claiming more than 10 allowances or if you are claiming "EXEMPT" status and are expected to earn more than $200 a week. A new W-5 form must be completed each calendar year in order to claim the "earned income credit".
You can also complete a new W-4 form anytime your family situation changes (marriage, divorce, birth or adoption of a child, etc.).
What is FICA?
FICA is also known as Social Security tax. It is composed of OASDI (Old Age, Survivors and Disability Benefits). The OASDI rate for 2011 is 4.20% of a base amount that changes each year due to a rise in the Consumer Price Index. The maximum taxable wages for OASDI for the year 2011 is $106,800. The Medicare rate is 1.45% and currently has no income limit.
Why was so much Income Tax deducted from my supplemental pay?
Employees receiving supplemental pay (bonuses, etc.) are subject to a 25% Federal Tax deduction and a 6.0% State Tax deduction. Bonus pay is subject to a flat tax rate as required by the Federal and State tax regulations.
How many exemptions can I claim before the IRS is notified?
Employers are no longer required to send the IRS copies of W-4 forms unless the IRS specifically asks for an employee's W4. The W-4's that they would most likely request are for employees who claim more than 10 withholding allowances or Exempt status and are expected to earn more than $200 a week.
Working Families Tax Relief Act (WFTRA)
WFTRA DEFINED
The Working Families Tax Relief Act (WFTRA) is an IRS regulation that requires employees who cover dependents on their medical, dental, and/or vision coverage to certify the tax status of each dependent. This certification is done through the completion of a Declaration of Tax Status Form or making the designation on your Enrollment/Change Form when adding dependents to your insurance.
WHO IS AFFECTED
All current employees who cover dependents on medical, dental and/or vision coverage. Retirees and employees who do not cover dependents are not affected.
REQUIRED FORM
Any employees adding new dependents to Medical, Dental and/or Vision must document the dependent's tax status either on the Benefits Enrollment/Change Form or the Declaration of Tax Status Form . This form must be completed and returned as soon as possible for the appropriate tax application of benefits for the 2008 plan year. To assist in the proper tax designation of your newly added dependents, flow charts (spouse, child, domestic partner ) outlining the IRS rules applicable to each of your dependents are available on the Health Care and Benefits Division website.
TAX CONSEQUENCES
If you return a form indicating that all your dependents are tax qualified, your tax treatment will not change.
If you return a form indicating that all or some of your dependents are NOT tax qualified, premium contributions for those persons CANNOT be taken on a pre-tax basis.
Until you make a designation, premium contributions for dependents CANNOT be taken on a pre-tax basis, until a form is received. In this case, changes can only be made prospectively. In other words, if an employee turns the form in after the benefit year has started, the taxes that have already been paid cannot be refunded.
