Governmental Entities

A governmental entity is any state, county or local government unit, including political subdivisions such as school districts, irrigation districts, elementary districts, fire control districts or any other employing unit funded directly by tax levies or block grants.

For Unemployment Insurance (UI) tax purposes, governmental entities may elect to make payments in lieu of contributions (see Reimbursable Employers) or be experience rated. 

Governmental entities who elect to be experience rated must:

  • File quarterly wage reports with UI, reporting the TOTAL wages paid to each employee. 
  • Pay Administrative Fund Tax (AFT) equal to 0.09% of the TOTAL wages paid each quarter. 
  • Pay contributions (tax) on the TOTAL wages paid each quarter (rates assigned on a fiscal year basis beginning July 1). 

Governmental Entities Q & A

  • A Method of Payment Election request must be submitted to the UI Contributions Bureau.  

    Employers registering online for a new UI account may submit their method of payment election with their registration.  If it is not submitted with your registration, it must be received by the Contributions Bureau within 30 days of the date your account is made active. 

    Employers with an existing Montana UI account, wishing to change their election, may log into UI eServices for Employers to submit the request. 

    Reference:  MCA 39-51-1124

  • Yes, but changes from one method to the other must remain in effect for at least two complete years.

    To change your method of payment from experience rated to reimbursable you must submit a new Method of Payment Election by June 1. Your new election will be effective July 1.

    To submit a new Method of Payment Election, logon to UI eServices for Employers and navigate to the Account Services tab on your account. 

     

  • Experience rates for Governmental entities are calculated early to mid May each year and are effective July 1 through the following June 30th.

  • New governmental entities are assigned the median rate (of all governmental entities) for the first year you are subject.  After the first year, your rate will be based on your benefit cost experience; the total sum of benefits charged to your UI account divided by the total wages paid.  

     

  • A governmental rate notice will be sent out after rates are calculated in May.  You can also check your rate on UI eServices for Employers.

  • Yes, if you are the claimant's last employer or if you employed the claimant in the previous six weeks, you will receive a notice asking the reason for separation. The reason for separation will determine if the claimant is eligible to receive benefits. 

    It is very important to respond timely to all notices or requests for information regarding any benefit claims filed.  Your responses assist with our eligibility determinations. The more information we have, the more accurate our determinations. If you have not already, we strongly encourage all employers to sign up for SIDES E-Response to receive and respond to benefit claim inquiries electronically.

  • If we determine a claimant is eligible for benefits, and you paid wages to the employee during their base period, your experience account will be charged. 

    Typically, the base period for a UI claim is the first four of the last five completed calendar quarters prior to the quarter the claim is filed.  The amount of benefits charged to your account is based on the percentage of wages you paid compared to the total wages paid by all employers in the claimant's base period. 

    Example: You are a governmental entity and your employee, Chris, quits for a better-paying job.  Later Chris is laid off by his new employer.  Chris files for UI and is found eligible to receive benefits.  If you paid Chris 64% of the total wages received during his base period, your account we be charged for 64% of the benefits paid to him. 

    Your account will be charged regardless of the reason the employee separated from your employment, with one exception: if you continue to employ the individual part-time and you continue to provide employment to that individual with no fluctuation in their hour or wages. 

    If you have questions or concerns regarding any charges to your account please call our Charging Unit at (406) 444-0399. 

  • Yes, quarterly benefit charges notices will be sent around the 15th of the month following the end of each calendar quarter (January, April, July, & October).  The notices will provide a list of individuals who received benefits during the quarter and the amount charged to your account.  You can also check for charges on your account on UI eServices for Employers (under the Benefits tab). 

    If you have questions or concerns regarding any charges to your account please call our Charging Unit at (406) 444-0399. 

     

     

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