Unemployment Insurance (UI) is a federal-state program developed in the 1930's after the Great Depression. Unemployment Insurance is exactly as the name implies - insurance. UI administration is financed through a federal payroll tax paid by employers.
Unemployment Insurance benefits lighten the burden for the unemployed individual, allowing them to maintain purchasing power in the community and remain in the area so they will be available for re-employment. The program stabilizes the local and state economy by preventing a sharp drop in consumer spending during periods of high unemployment. Unemployment Insurance benefits are paid with Montana employer's Unemployment Insurance contributions.
