Unemployment Insurance Tax
Unemployment Insurance is a federal-state program developed in the 1930's
as a result of the business failures and financial hardship caused by the Great
Depression.
Unemployment Insurance (UI) is exactly as the name implies - insurance.
The program is designed to help stabilize the economy by preventing a sharp
drop in consumer spending during periods of unemployment. Benefits are
paid to lighten the financial burden of the unemployed individual, to maintain
purchasing power in the community and to encourage laid-off employees to remain
in the area so they will be available for re-employment.
Montana's Unemployment Insurance benefits are financed entirely by employers
through a payroll tax. Employers pay Unemployment taxes based on the wages
paid to their employees for services performed in Montana.
Montana’s Unemployment Insurance contribution rate varies depending on
the size of the UI trust fund and the employer's industry or experience rate. Employers
also pay an Administrative Fund Tax that varies based on employer classification. Please
refer to the employer handbook by using the links below.
