All states · Updated for 2026
How to pay a nanny in Montana
Everything a Montana family has to do to pay a nanny, housekeeper or caregiver legally: the taxes, the registrations, the forms, and the deadlines. CareTab does the math and reminds you; you keep paying them the way you already do.
The short version
- Federal: withhold 7.65% Social Security and Medicare from their pay and match it; pay FUTA (0.6% of the first $7,000.00); file Schedule H with your 1040; give them a W-2 by Jan 31.
- Montana unemployment tax: register with Montana Department of Labor & Industry, Unemployment Insurance Division (Contributions Bureau) after $1,000 or more in cash wages for domestic service in a calendar quarter (current or preceding year), mca 39-51-202(3); your rate comes on a notice on the first $47,300.00 of wages; file UI-5 Quarterly Wage Report (UI eServices) quarterly.
- Montana income tax: withholding is voluntary for household employers (form MW-4).
- New hire report: within 20 days of their start date.
- Minimum wage: $10.85/hour. Overtime: 1.5× over 40 h/week for live-out nannies.
- Paid sick leave: not mandated by the state.
- Workers' compensation: MCA 39-71-401(2)(a)–(b): household or domestic employment and casual employment are outside the Workers' Compensation Act unless the employer elects coverage and an insurer allows the election.
Step by step
- Get an EIN from the IRS (free, online, 10 minutes).
- Have your nanny complete Form I-9 and, if they want federal income tax withheld, a W-4 and MW-4.
- File the Montana new-hire report within 20 days at the state site.
- Register with Montana Department of Labor & Industry, Unemployment Insurance Division (Contributions Bureau) once you cross $1,000 or more in cash wages for domestic service in a calendar quarter (current or preceding year), mca 39-51-202(3) (registration).
- Each payday: track hours, pay at least minimum wage and overtime, withhold 7.65%, give a pay stub.
- Each quarter: file UI-5 Quarterly Wage Report (UI eServices). 2026 Rate Schedule 1; new employers are assigned their industry's average rate (1.10% for Services, 2.00% for unclassified establishments—private households usually fall under Services; use the rate on your UI eServices notice) plus the 0.18% Administrative Fund Tax. Quarterly UI-5 reports are filed electronically in UI eServices; the department pages read did not state the due date (Montana employers customarily file by the last day of the month after the quarter—confirm in UI eServices).
- January: W-2 to your nanny, W-2/W-3 to the SSA, Form MW-3, Montana Annual W-2 1099 Withholding Tax Reconciliation (with W-2s) to the state. April: Schedule H with your 1040.
Run your numbers
Use the free Montana nanny tax calculator: take-home pay, what you withhold, and your total cost including employer taxes.
Frequently asked
Do I have to pay nanny taxes in Montana?
Yes. Once you pay a household employee $3,000.00 or more in a year you owe Social Security and Medicare (7.65% withheld from your nanny and 7.65% from you), and FUTA once you pay $1,000.00 in any quarter. Montana unemployment tax applies after $1,000 or more in cash wages for domestic service in a calendar quarter (current or preceding year), mca 39-51-202(3).
Do I withhold Montana income tax from my nanny?
Montana does not require household employers to withhold state income tax; you can withhold voluntarily using MW-4 if your nanny asks.
What forms do I file in Montana?
UI-5 Quarterly Wage Report (UI eServices) quarterly with Montana Department of Labor & Industry, Unemployment Insurance Division (Contributions Bureau), Form MW-3, Montana Annual W-2 1099 Withholding Tax Reconciliation (with W-2s) annually, a W-2 for your nanny and W-3 to the SSA by Jan 31, and Schedule H with your federal return.
Does my nanny get overtime in Montana?
Live-out nannies get 1.5× over 40 hours a week. Live-in nannies are exempt from overtime in Montana. Montana adjusts its minimum wage each January by CPI (no tip, meal or training credit). Live-in treatment follows the prior placeholder (federal FLSA live-in domestic overtime exemption) and was not verified against a Montana DLI source; Montana's wage law exemptions for in-home child care were seen only in secondary sources—confirm with DLI Employment Standards (406-444-6543).
What is the minimum wage for a nanny in Montana?
$10.85 per hour in 2026 (schedule: $10.55 from 2025-01-01, $10.85 from 2026-01-01, $11.20 from 2027-01-01).
Pay your Montana nanny legally for $14.99/month
Hours, paychecks with every tax computed, pay stubs, PTO, and a filing calendar with UI-5 Quarterly Wage Report (UI eServices) pre-filled. 14-day free trial, no card needed.
Start free trialSources: Montana Department of Revenue, Montana Employer and Information Agent Guide with Tax Tables (2026 withholding formula, pages 16–19); Montana Department of Revenue, 2026 Withholding Updates (HB 337 rates 4.7% / 5.65%; federal-style method; MW-4); Montana Department of Labor & Industry, Unemployment Insurance Contribution Taxable Wage Base & Rates for 2026 (wage base $47,300; Schedule 1; new-employer industry rates; AFT 0.18%); MCA 39-51-202(3): domestic employing unit is an employer when it pays $1,000 or more in cash for domestic service in a quarter; MCA 39-71-401(2): household or domestic employment and casual employment exempt from the Workers' Compensation Act unless coverage elected; Montana DLI Employment Standards, Minimum Wage Determination Letter 2026 ($10.85 effective January 1, 2026); Montana DLI Employment Standards, Montana's Minimum Wage ($11.20 effective 1/1/2027). Rules for 2026 are provisional. General information, not tax or legal advice.