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Full Printable Handbook PDF
SECTION 1: REGISTRATION:
Who pays Unemployment Insurance taxes?
Employers pay UI taxes. If you are an employer subject to the state unemployment insurance (UI) law, you are a "covered" employer and you, the employer, must pay UI taxes. It is against the law to take UI taxes out of your employees' wages.
Any year you meet the criteria for a covered employer, you must report all wages paid for the entire year (retroactively to January 1) and all wages paid in the next calendar year regardless of the amount of wages in the second year.
You are a "covered" employer if you meet one or more of the following criteria:
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Your total annual payroll for the current or preceding calendar year equals or exceeds $1,000. (Total payroll is all wages paid to all employees before deductions.)
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You acquired all or part of a business already subject to MT Unemployment Insurance.
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You are subject under the Federal Unemployment Tax Act (FUTA).
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You employed agricultural workers and paid $20,000 or more in cash for agricultural labor in any quarter during the current or preceding calendar year.
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You employed 10 or more workers in agricultural labor in 20 different weeks during the current or preceding calendar year.
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You employed domestic (or household) workers and paid $1,000 or more in cash for domestic services in any quarter during the current or preceding calendar year. Companionship services are not considered domestic employment.
Are governmental entities covered?
All state and local governmental entities must be covered by Unemployment Insurance. Governmental entities may be assigned a governmental experience rate or may elect to become a reimbursable employer.
May I get UI coverage for my workers if I'm not a covered employer?
If you don't qualify as a covered employer but want UI coverage for your workers,
you may apply for voluntary
coverage. Voluntary coverage cannot be retroactive and if approved,
must cover your employees for at least two calendar years.
Who must register?
An employer who meets the above criteria is subject to Unemployment Insurance
and must register. You may either register on-line at www.UI4Employers.mt.gov or
by completing a paper form. You may obtain an Employer Registration
form by calling the Registration Unit at 1-800-550-1513 or downloading the
form and instructions from our web site at http://uid.dli.mt.gov/tax/uitaxforms.asp.
A new employer that acquires an existing business cannot use the prior owner’s account number. A new UI account number is needed, and you should also apply for a new federal identification number.
An entity change occurs any time you change from one type of ownership to another and requires a new registration. The change from a sole proprietor to a corporation or a partnership is a type of entity change. Changing stock ownership in a corporation is not an entity change. Changing members of a limited liability company (LLC) may result in an entity change. Call 1-800-550-1513 to report entity changes and determine if a new account is needed.
Failure to register does not relieve an employer of his/her responsibility to remit UI taxes timely.
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