Cost to hire an employee in Montana
On top of a $50,000 salary, a Montana employer pays roughly $5,142 in payroll taxes and insurance before benefits, about 10.3% of wages.
Last verified November 2, 2026. Sources: uid.dli.mt.gov, oregon.gov.
What a Montana employer pays
| Cost | Rate | Applies to |
|---|---|---|
| Social Security | 6.2% | Wages up to $184,500 |
| Medicare | 1.45% | All wages |
| Federal unemployment (FUTA) | 0.6% net | First $7,000 |
| Montana unemployment (SUTA) | 1.28% new employer 0.13%–6.3% experienced | First $47,300 |
| Workers' compensation | ~$1.34 per $100 | Varies by job class |
Administrative Fund Tax (AFT) 0.18% (0.13% for rate classes 1-2), included in the rates
Total cost at different salaries
| Salary | Employer taxes & insurance | % of salary | Total cost |
|---|---|---|---|
| $35,000 | $3,637 | 10.4% | $38,637 |
| $50,000 | $5,142 | 10.3% | $55,142 |
| $75,000 | $7,390 | 9.9% | $82,390 |
| $100,000 | $9,637 | 9.6% | $109,637 |
| $150,000 | $14,132 | 9.4% | $164,132 |
Benefits usually cost more than taxes. The BLS Employer Costs for Employee Compensation survey puts benefits at roughly 30% of total compensation in private industry. Add your health plan cost in the calculator to include it.
Montana vs. neighboring states
| State | SUTA wage base | New-employer rate | Cost on $50,000 |
|---|---|---|---|
| Montana | $47,300 | 1.28% | $5,142 |
| Idaho | $58,300 | 1% | $4,917 |
| North Dakota | $46,600 | 1% | $4,583 |
| South Dakota | $15,000 | 1.75% | $4,695 |
| Wyoming | $33,800 | 1.69% | $5,143 |
Frequently asked questions
- How much does it cost to hire an employee in Montana?
- On a $50,000 salary, employer payroll taxes and insurance add about $5,142 (10.3%), before benefits, for a total of $55,142.
- What is the Montana SUTA rate for new employers?
- New employers generally pay 1.28% on the first $47,300 of each employee's wages. Experienced employers pay between 0.13% and 6.3%.
- Do Montana employers pay FUTA?
- Yes. Employers pay 6.0% on the first $7,000 of wages, reduced to 0.6% with the state unemployment credit.