(1)� Employers shall calculate the state income tax amount to withhold according to the "Montana Wage Withholding Tax Tables," provided by the department and available:

(a) online at revenue.mt.gov; or

(b) by calling 444-6900 in Helena; or

(c) by writing to:

Montana Department of Revenue

P.O. Box 5835

Helena, Montana 59604-5835.

(2) Montana wage withholding tables are based on the following annual withholding formulas as adjusted annually for inflation. Wage withholding is equal to:

(a) 1.80% of the first $7,105 of taxable earnings; plus

(b) 4.40% of the next $8,120 of taxable earnings; plus

(c) 6.00% of the next $106,575 of taxable earnings; plus

(d) 6.60% of taxable earnings over $121,800.

(3) Withholding formulas for nonannual payroll periods are calculated by dividing the dollar amounts for annual payroll in (2) by the ratio of the number of working days in a year to the number of working days in the payroll period. The following table shows payroll periods and the corresponding divisors:

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Payroll Period	Divisor
Monthly	12
Semi-Monthly	24
Biweekly	26
Weekly	52
Daily	260

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(4) The department publishes the tables based on the formulas in (2) and (3) at revenue.mt.gov, showing the amount to withhold each pay period for taxable incomes within ranges of taxable earnings.

(5) By October 1 of each year, the department shall adjust the withholding formulas for inflation by multiplying the dollar amounts in (2) and the withholding exemption amount in ARM 42.17.101 by the inflation factor, as defined in 15-30-2101, MCA.

(6) If the department determines that the inflation adjustment is immaterial, it may keep existing withholding tables in effect for another year.

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