Montana Assignment of Wages Due or to Become Due

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Multi-State
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US-03924BG
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Description

An assignment of wages is the transfer of the right to collect wages from the wage earner to a creditor. The assignment of wages is usually effectuated by deducting from an employee's earnings the amount necessary to pay off a debt.

An assignment of wages should be contained in a separate written instrument, signed by the person who has earned or will earn the wages or salary. The assignment should include statements identifying the transaction to which the assignment relates, the personal status of the assignor, and a recital, where appropriate, that no other assignment or order exists in connection with the same transaction.

Many jurisdictions have enacted statutory provisions concerning wage assignments that prescribe various requisites of or conditions to the validity of assignments of wages. Compliance with these statutes is essential to make such assignments effective.

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FAQ

Employers must pay employees within 10 consecutive days from the end of the pay period, unless employment is terminated. An employee isn't considered paid until they've received the funds.

Montana ranked especially high in its rate of new entrepreneurs. According to U.S. Census Bureau data, the number of new business applications in the state rose 50% between January of 2020 and January of 2021.

Montana is not an at will state. In some instances, the Wrongful Discharge From Employment Act does not apply, but generally, once an employee has completed the established probationary period, the employer needs to have good cause for termination.

Accounting for Wage Expenses It is a liability account. When a wage expense is recorded it is a debit to the wage expenses account, which requires a credit to the wages payable account for the same amount until the wage is paid to the worker.

For example, a company pays its hourly employees once a month, on the last business day of the month.

FYI, based on Section 19(1) of the Employment Act 1955, you're to be paid within 7 days after the last day of any wage period (usually a month). For example, if you receive your salary on the last day of the month, then your next salary should be in before the 7th of next month.

Salary due is the amount of salary payable for a particular period but the related services corresponding to the amount of salary payable have already been availed by the business entity. It is also known as salary outstanding. It is a liability for the business entity.

In Montana it is unlawful for an employer to fire you in certain circumstances, such as: You were fired because you refused to violate public policy, or reported a violation of public policy, You had finished your probationary period and your employer did not have good cause to fire you.

While exceptions exist, generally, punitive damages are unavailable in Montana for wrongful termination or constructive discharge. Damages for wrongful discharge, in Montana, are limited to four years of wages and fringe benefits.

Definition: Wages payable is a current liability account that records the amount of wages that are owed to employees for work that was performed by the employees in prior periods. In other words, wages payable is the amount of wages that employee hasn't paid the employees for their work.

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Montana Assignment of Wages Due or to Become Due