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Taxation of Employee Benefits: Montana

Taxation of Employee Benefits requirements for other states

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

Authors: Jason Ritchie, William Dabney, Holland & Hart, LLP

Summary

  • In Montana, salary deferrals to Internal Revenue Code (IRC) § 125 cafeteria plans and § 401(k) plans are taxed differently than under federal law for unemployment insurance tax purposes. See Salary Deferrals to IRC § 125 Cafeteria Plans and § 401(k) Plans.
  • Same-sex marriage is legal in Montana and the value of health insurance benefits provided by an employer to an employee's same-sex spouse, and/or their dependents, is not subject to income tax withholding. Civil unions and domestic partnerships are not legal and the value of health insurance benefits provided by an employer to an employee's same-sex civil union partner or domestic partner is subject to income tax withholding. See Same-Sex Couple Health Insurance Benefits.