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Involuntary and Voluntary Pay Deductions: Montana

Involuntary and Voluntary Pay Deductions requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Jason Ritchie and Bradley T. Cave, Holland & Hart, LLP

Summary

  • How soon an employer that receives a child support withholding order must begin withholding from an employee's wages depends on whether the order was issued by a court or the Montana Department of Public Health and Human Services. In either case, employers must remit the amounts withheld within seven days after payday. Withholding amounts are limited by federal law. If an employee subject to an order is terminated from employment, the employer must send a termination notice. Employers may also be required to enroll dependent children in their group health plan. Penalties are imposed for violations of the law. See Child Support Withholding.
  • Employers are required to comply with creditor garnishment orders, subject to the limits established by federal law. See Creditor Garnishment Withholding.
  • Employees who have failed to pay state taxes may be subject to wage withholding pursuant to a tax levy issued by the state Department of Revenue. Tax levies continue for 120 days, or until they are satisfied, whichever occurs first. See Tax Levies.
  • Employees may voluntarily assign their earnings to a third party, provided certain requirements are met. Employers may choose whether to honor a wage assignment. See Voluntary Wage Assignments.