Table
of Contents | Introduction | Registration | New
Employer Info
Reportable
Wages & Employment | Employer
Tax Rates
Payments & Reports | Misc.
Questions | Penalties
Electronic
Filing & Payments | Electronic
Media Reporting
Benefits Eligibility
and Charging | Important
Phone Numbers
Printable PDF Handbook | Downloadable
Forms
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SECTION 2: NEW EMPLOYER INFORMATION "AT A
GLANCE"
The next two paragraphs in this section applies to new employers who are
classified as "experience rated" for Unemployment Insurance purposes. Most
employers in Montana are classified as experience rated. If you are a governmental
entity or a non-profit organization that qualifies under 501 C (3) of the
Internal Revenue Code and elect to reimburse the Unemployment Insurance trust
fund for benefits paid, please refer to Reimbursable Employers.
Taxable wage base - is the amount of wages per employee you are liable to pay tax on each year:
Calendar Year: |
2008 |
2007 |
2006 |
2005 |
2004 |
2003 |
Taxable Wage Base: |
$23,800 |
$22,700 |
$21,600 |
$21,000 |
$20,300 |
$19,700 |
Experience rated employers pay taxes on each employee's wages up to and including the taxable wage base. After an employee's wages reach the taxable wage base, you continue to report the employee's quarterly wages but you no longer pay taxes on the wages. You may have quarters where some employees have met the wage base for the year and some have not. Report all wages paid but only pay taxes on the wages of employees who have not yet met the taxable wage base. Governmental and reimbursable accounts do not have a taxable wage base and must pay tax on total wages.
Experience rates for new employers - are based on your business' industry type. As a new employer, you will receive the average rate assigned to your industry during the previous rate year. Your rate may change during the three year "industry average" period because the average rate for your industry may change each year. If you purchased an existing business, you and the previous owner may agree to transfer the prior owner's experience rate to your new account.
Administrative Fund Tax -
is an assessment paid by all employers subject to Montana Unemployment Insurance
and is due and payable with the quarterly wage reports. Experience rated employers
are assessed at 0.13% or 0.18% on taxable wages. Governmental rated employers
are assessed at 0.05% through
June 30, 2008 and 0.09% thereafter; and reimbursable employers are assessed at
0.08% on total wages.
What records do I have to keep?
For Unemployment Insurance purposes, you must keep a record of:
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beginning and ending date of each pay period; |
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total wages paid during each pay period; |
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employee expense reimbursements; |
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method of payment; |
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number of employees on the 12th of each month and total number of employees each quarter; |
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each employee's name, social security number and wages for each pay period; |
> |
date each employee was hired, re-hired or returned to work after a temporary lay-off; |
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date an employee was terminated; and the cause of the termination and |
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articles issued by the Secretary of State. |
A complete explanation of the records you must keep is in Section 24.11.2704 of the Administrative Rules of Montana. For a copy of this rule or if you have questions about it, please call the Unemployment Insurance Contributions Bureau at (406) 444-3834 or a local area field representative. |
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Your records must be available for inspection by the department or its authorized representative. A field representative may audit your records to confirm quarterly reports are are filed correctly and you are complying with the law. The field representatives will also answer your questions and help you understand Unemployment Insurance.
Table of Contents | Introduction | Registration | New Employer Info
Reportable Wages & Employment | Employer Tax Rates
Payments & Reports | Misc. Questions | Penalties
Electronic Filing & Payments | Electronic Media Reporting
Benefits Eligibility and Charging | Important Phone Numbers
Printable PDF Handbook | Downloadable FormsPREVIOUS PAGE | NEXT PAGE
