Human Resources > Employee Resources > Tax Information
Form W-2 - for State of Montana Employees
The State of Montana is required by the Internal Revenue Service (IRS) to furnish all employees with a Form W-2 for each calendar year to be used in completing the employee's annual tax return. The Form W-2 details the employee's compensation and tax withholding amounts for the calendar year, and must be furnished by January 31 of the following calendar year.
Employees have the option to stop receiving the paper copies of the W-2 statement in the mail, and instead may consent to receive their W-2 statement online via Self-Service. Note this option is only available to employees with access to SABHRS Self-Service. If you do not have access to SABHRS Self-Service you will receive a paper W-2 statement in the mail.
Read the disclosure notice and follow the instructions for consenting to begin receiving all future W-2 statements online via Self-service.
Information for those receiving printed W-2 statements:
All address changes must be reported to agency HR/payroll staff or updated in SABHRS Self-service by January 25th to avoid delayed or misdirected W-2s, as the US Postal Service WILL NOT forward Important Tax Return Documents. Even if this date has passed, you need to update your address ASAP.
W-2 statements lost or misplaced
Lost or otherwise misplaced W-2 statements are not the responsibility of the State of Montana. Employees can request a reprint of the W-2 statement only after sufficient time has passed to allow for delivery of the W-2 statement. The earliest date to begin requesting W-2 statement reprints is Feburary 15th. Employees opting to choose the online W-2 statement option will be able to reprint their W-2 from Self-service at any time after the W-2 is available.
If you need help deciphering the information on your W-2, contact your agency HR Payroll staff or review the following informational links:
Corrected W-2 statements
Contact your agency HR Payroll staff with any W-2 statement discrepancies or to request a reprint.
1095-C Informational Tax Form
The Form 1095-C includes information regarding the medical insurance coverage offered by the State of Montana to eligible employees. The information reported will assist the employees with determining eligibility for the premium tax credit. The 1095-C does not need to be sent to the IRS when filing tax returns but should be kept with tax records. For more information about what the 1095-C is, see the IRS FAQs.
- Only employees eligible for coverage under the State of Montana Health Insurance will receive a 1095-C form.
- Employees who provided consent to receive this form electronically can now view it online. (Self Service > Benefits > View Form 1095-C).
- The 1095-C form will only be printed and mailed to current employees who did not provide consent to receive the 1095-C form online.
PLEASE NOTE: Line 15 of the 1095-C form is NOT your out of pocket cost for medical premiums. This line indicates the amount for employee-only coverage during the month; this amount should be 0.00 for employees receiving the State Share. Please refer to the instructions for Line 15 on the back of the form or online for more information.
See the IRS FAQs or your accountant for more information.
1095-C Form Frequently Asked Questions
- Why did I receive a 1095-C form? Due to the health care law, we are required to provide information regarding the medical insurance coverage offered by the State of Montana to eligible employees. The information reported will assist with determining eligibility for the premium tax credit.
- Is the 1095-C form required to file my tax return? No. Although the information on the form may assist in preparing your return, it is not required. The form should be kept with your other important tax records.
- Why am I unable to view my 1095-C in SABHRS HR Self Service? Only employees that have provided consent receive the electronic 1095-C can view the form online. (Self Service> Benefits > View 1095-C Form). By Monday, March 4, a printed form will be mailed to employees who did not provide consent.
- I allowed plenty of time for the US Postal service to mail my 1095-C form, and have yet to receive it. What should I do? Employees who did not provide consent by February 21st should contact their agency HR staff to verify their mailing address and request a reprint. Retirees and other non-employees should also refer to their previous employing agency.
- Why does is Line 15 of the 1095-C form blank or reflect 0.00? Line 15 is NOT your out-of-pocket cost for medical premiums. This line indicates the amount for employee-only coverage during the month. The amount will be 0.00 for employees receiving the State Share (or blank for Retirees and other non-employees). Please refer to the instructions for Line 15 on the back of the form or online for more information.
- I have additional questions related to the data contained on the 1095-C form. Refer to the instructions on the back of the printed form or the filing instructions link online. For detailed information, refer to IRS website https://www.irs.gov/Affordable-Care-Act/Questions-and-Answers-about-Health-Care-Information-Forms-for-Individuals.
Don't miss the online consent deadline for next year. Employees can consent to view 1095-C's online at anytime in Employee Self Service (see 1095-C Consent users guide for step-by-step instructions). To read the full disclosure notice or for more information, see http://hr.mt.gov/neww2consent.
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:
Working Families Tax Relief Act (WFTRA)
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 when adding dependents to your insurance (through online Self Service Benefits Enrollment or the Mid-Year Change Form).
Who is affected by WFTRA?
All current employees who cover Domestic Partners on medical, dental and/or vision coverage are affected. Retirees and employees who do not cover Domestic Partners are not affected.
Premiums for Domestic Partners CANNOT be taken on a pre-tax basis.
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 your federal withholding and the MW-4 applies to your Montana state withholding and exemptions from state withholding.
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 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.
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 2019 is 6.20% 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 2019 is $132,500. 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 22% 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.