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 24.11.2204 - RATES FOR NEW EMPLOYERS

(1) Rates for new employers are based on North American Industry Classification System (NAICS) codes which are assigned to nine major industrial classification rate divisions, plus a nonclassifiable establishment division for employer accounts whose industrial class cannot be determined.

(2) A professional employer organization (PEO) licensed under Title 39, chapter 8, MCA, for the first calendar year of subjectivity is assigned the nonclassifiable rate for new employers. Thereafter, unless the PEO is experience-rated, the PEO is assigned a rate as a new employer in the industry in which the majority of workers are placed for the PEO's clients.

(3) The NAICS codes are assigned to rate divisions as follows:

(4) Employers that do not provide sufficient information to be properly classified are assigned to Division K, NAICS Code 99, nonclassifiable establishments, which carries the maximum rate for new employers. Employers have 30 days from the postmarked date of the rate notice or rate letter to submit sufficient information for a proper NAICS classification and rate assignment.

(5) The average rate for each rate division is computed once a year to set rates for the calendar year. Rates for new employers are determined using the average contribution rates in effect for the prior and current calendar year, plus any adjustment for changes in the rate schedule.