Unemployment Insurance Tax (FUTA/SUTA): Montana

Federal law and guidance on this subject should be reviewed together with this section.

Authors: Jason S. Ritchie, Holland & Hart LLP

Summary

• Montana uses its own test to determine who is an employee for state unemployment insurance (SUI) tax purposes. See Test for Employee Status.
• The law defines wages for SUI purposes as all compensation for personal services, including salaries, commissions, bonuses and the cash value of all compensation paid in any medium other than cash. The annual total SUI tax rate is based on a range of rates. See SUI Taxable Wages; Contribution Rates.
• Employers may not manipulate the experience rating system to receive a lower unemployment insurance tax rate than their unemployment insurance experience would otherwise allow. An employer engaged in SUTA dumping may be subject to penalties. See SUTA Dumping.
• The state does not permit employers to make voluntary contributions to lower their SUI tax rates. See Voluntary Contributions.
• Employers must report all wages for each quarter under established deadlines. See Quarterly Reporting Requirements.
• An employer that is required to make unemployment insurance contributions must file quarterly reports.In addition, employers that operate more than one establishment in Montana must submit Multiple Worksite Reports. See Quarterly Reporting Requirements; Multiple Worksite Reporting.
• An employer's account may be charged for overpayments caused by the employer's failure to properly respond to requests for information about benefit claims. See Benefit Overpayments.
• All Montana employers must keep accurate records for five years. See Recordkeeping Requirements.