Key figures
Montana payables
2026, with sources
The ICEC
Montana has a piece of contractor paperwork most states don’t: the Independent Contractor Exemption Certificate. Under MCA 39-71-417, a worker is an independent contractor for workers’ compensation only if they are free from control and engaged in an independently established trade or business, and they must also hold an ICEC from DLI or carry their own Montana workers’ comp coverage. Applications and renewals are online.
Example: a startup hires a Billings developer on a monthly retainer. Before the first invoice, it asks for the developer’s ICEC number and keeps a copy with the contract. If the developer has neither an ICEC nor their own coverage, the company’s workers’ comp carrier can treat them as covered, and charge for it at audit.
1099s and use tax
Montana wants its copy of Forms 1099, on the federal due dates: January 31 for 1099-NEC, and February 28 on paper or April 1 electronically for most others. A company with no Montana withholding sends them with federal Form 1096 and doesn’t need a withholding account.
Montana has no general sales tax, so there is no use tax to accrue on software, equipment or services bought from out-of-state vendors. Some resort communities levy local resort taxes on goods and services sold there.
Deadlines
- Jan 31Montana copy of nonemployee compensation forms, with federal Form 1096 if no withholdingForm 1099-NEC
- Feb 28 paper / Apr 1 electronicWithout Montana withholding, on federal due datesOther Forms 1099
The federal baseline
This page covers what Montana adds. The federal rules underneath it apply here too.
Common questions
Do we send 1099s to Montana?
Yes. Montana follows federal due dates for Forms 1099 without withholding — January 31 for 1099-NEC — filed with a federal Form 1096, and you don’t need a Montana withholding account if nothing was withheld. DOR is moving electronic submissions to the IRS IRIS XML format.
What do we need from a Montana contractor?
For workers’ compensation, an independent contractor in Montana must hold an Independent Contractor Exemption Certificate (ICEC) from DLI or have their own Montana workers’ comp coverage, and must meet the statutory test of being free from control and engaged in an independently established business. Without one, the company’s policy may have to cover them.
Payables next door
- IDIdaho payablesIdaho requires a copy of every 1099-NEC for services performed in Idaho by the end of February, and charges 6% use tax on untaxed goods but not on SaaS or downloaded software.
- NDNorth Dakota payablesNo contractor withholding and 1099s only where North Dakota tax was withheld. Use tax applies to prewritten software and equipment bought untaxed.
- SDSouth Dakota payablesNo state 1099s and no contractor withholding. Use tax reaches SaaS and services bought without South Dakota tax, because almost all of them are taxable.
- WYWyoming payablesWyoming has no state 1099 filing; use tax applies to downloaded and boxed prewritten software but not to SaaS, PaaS or IaaS, which Wyoming doesn’t tax.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- ComplianceFirst-year compliance calendar for a Delaware C-corpDelaware franchise tax, 1099s, the federal return, payroll filings, state annual reports and sales tax: the deadlines a young C-corp misses most, by month.
More of the Montana guide
- AccountingAccounting and state tax in MontanaCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in MontanaSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayrollPayroll taxes and employer rules in MontanaWithholding, unemployment insurance, paid leave, minimum wage and the rules on paydays
- ComplianceCompliance and filings in MontanaRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in MontanaCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.