Unemployment Insurance Tax

Unemployment Insurance is a federal-state program developed in the 1930's. The program is designed to help stabilize the economy by preventing a sharp drop in consumer spending during periods of unemployment.

Unemployment Insurance is exactly as the name implies - insurance.  Benefits are paid to lighten the burden of unemployment on the unemployed individual, to maintain purchasing power in the community and to allow laid-off employees to remain in the area so they will be available for re-employment.  Montana's Unemployment Insurance program is financed by employers through a payroll tax.  Employers pay this contribution tax on gross wages paid to employees performing services in Montana, up to the wage base in effect for that year.

The Unemployment Insurance contribution rate varies depending on the employer's industry or experience rate and the Contribution Rate Schedule.

Refer to our Employer Handbook at the link below for additional information: