Administrative Rules of Montana
Department 24 - LABOR AND INDUSTRY
Chapter 24.11 - UNEMPLOYMENT INSURANCE DIVISION
Subchapter 24.11.22 - Types of Accounts and Rate Setting
Rule 24.11.2201 - EXPERIENCE-RATED EMPLOYERS
Current through Register Vol. 6, March 22, 2024
(1) An experience-rated employer is a private employer whose contribution rate is based on the experience rating record of each business operated by the employer and the rate classification assigned to the employer under the contribution rate schedule.
(2) The contribution rate for each experience-rated employer is calculated by:
(3) The experience factor as defined in 39-51-1213, MCA, is computed by subtracting the benefits charged to the employer's account since October 1, 1981, from the amount of contributions paid by the employer since October 1, 1981. This is the "reserve." The reserve is then divided by the average annual taxable payroll for the last three fiscal years. The resulting ratio is the experience factor, also known as the reserve ratio. The following equations show how the experience factor is calculated:
Contributions paid - Benefit charges = Reserve
Reserve / Average taxable payroll = Experience Factor
(4) On or before April 1 of each year, the department mails rate notices to employers. The type of notice depends upon whether the employer is:
(5) Eligible employers and deficit employers who do not have delinquent accounts are sent a rate notice with the following information:
(6) New employers who do not have delinquent accounts are sent a rate notice with the following information:
(7) If all past due reports, taxes, penalties and interest are satisfied within 30 days of the date of mailing the rate notice, the employer's deficit, eligible, or new computed contribution rate is reinstated. The department sends the employer a revised contribution rate notice.
(8) The rate notice is final unless the employer files a written request for a redetermination within 30 days of mailing the rate notice. The request for redetermination must explain why the employer believes the assigned contribution rate is incorrect.
(9) If, after redetermination, the employer still contests the contribution rate, the employer may appeal the department's decision under 39-51-2402, MCA.
(10) Beginning in the first quarter of 2008, an assessment in the amount of.13 or.18 percent of taxable wages, as provided by 39-51-404, MCA, must be paid by all experience-rated employers and deposited in the employment security account provided for in 39-51-409, MCA. The assessment amount is not considered as "contributions" for the purposes of 39-51-401, MCA, and for purposes of reporting on form 940 Employer's Annual Federal Unemployment (FUTA) Tax Return.
39-51-301, 39-51-302, MCA; IMP, 39-51-301, 39-51-404, 39-51-1103, 39-51-1121, 39-51-1123, 39-51-1213, MCA;