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             Unemployment Insurance Contribution Taxable Wage Base & Rates for 2024 
  
 What is Montana’s 2024 Taxable Wage Base?  
  
 The taxable wage base for 2024 is $43,000 which is 80% of the 2022 average annual wage in Montana ($53,793.28) 
 rounded to the nearest $100. 
  
 How is Montana’s Rate Schedule determined each year? 
 
 Unemployment Insurance (UI) rates are based on the Schedule of Contribution Rates in effect for the year and the 
 individual employer’s experience rating history. The Rate Schedule determines the range of contribution rates 
 assigned to employers. The Rate Schedule is determined by the ratio of the UI Trust Fund balance on October 31, 
 2023, to total covered wages of experience rated employers during the fiscal year ending June 30, 2023. 
  
  The Rate Schedule for 2024 is Schedule 1.   The following data was used to determine this schedule: 
 
                          Montana UI Trust Fund Balance / Total Covered Wages = Ratio 
                                 $ 607,150,765.07 / 20,673,877,766 = 0.02937 
 
 The Schedule of Contribution Rates below determines the rate schedule based on the minimum ratio. This ratio 
 falls in Schedule 1 (circled). Therefore, rates will range from 0.00% to 6.12%. The average rate will be 1.12%.   
  
                                        Schedule of Contribution Rates 
 Schedule          I      II     III    IV     V       VI     VII       VIII          IX              X            XI 
 Minimum Ratio of 
 Fund to Total                                                                                              
 Wages             0.0260  0.0245  0.0225  0.0200  0.0170  0.0135  0.0095  0.0075  0.0050  0.0025                  (…) 
 Average Tax 
 Rate              1.12%  1.32%  1.52%  1.72%  1.92%   2.12%  2.32%     2.52%         2.72%  2.92%  3.12% 
  Rate Class                            Contribution Rates for Eligible Employers 
       1           0.00   0.00   0.02   0.22   0.42    0.62   0.82      1.02          1.22            1.42         1.62 
       2           0.00   0.02   0.22   0.42   0.62    0.82   1.02      1.22          1.42            1.62         1.82 
       3           0.02   0.22   0.42   0.62   0.82    1.02   1.22      1.42          1.62            1.82         2.02 
       4           0.22   0.42   0.62   0.82   1.02    1.22   1.42      1.62          1.82            2.02         2.22 
       5           0.42   0.62   0.82   1.02   1.22    1.42   1.62      1.82          2.02            2.22         2.42 
       6           0.62   0.82   1.02   1.22   1.42    1.62   1.82      2.02          2.22            2.42         2.62 
       7           0.82   1.02   1.22   1.42   1.62    1.82   2.02      2.22          2.42            2.62         2.82 
       8           1.02   1.22   1.42   1.62   1.82    2.02   2.22      2.42          2.62            2.82         3.02 
       9           1.22   1.42   1.62   1.82   2.02    2.22   2.42      2.62          2.82            3.02         3.22 
       10          1.42   1.62   1.82   2.02   2.22    2.42   2.62      2.82          3.02            3.22         3.42 
  Rate Class                            Contribution Rates for Deficit Employers 
       1           2.92   3.12   3.32   3.52   3.72    3.92   4.12      4.32          4.52            4.72         4.92 
       2           3.12   3.32   3.52   3.72   3.92    4.12   4.32      4.52          4.72            4.92         5.12 
       3           3.32   3.52   3.72   3.92   4.12    4.32   4.52      4.72          4.92            5.12         5.32 
       4           3.52   3.72   3.92   4.12   4.32    4.52   4.72      4.92          5.12            5.32         5.52 
       5           3.72   3.92   4.12   4.32   4.52    4.72   4.92      5.12          5.32            5.52         5.72 
       6           3.92   4.12   4.32   4.52   4.72    4.92   5.12      5.32          5.52            5.72         5.92 
       7           4.12   4.32   4.52   4.72   4.92    5.12   5.32      5.52          5.72            5.92         6.12 
       8           4.32   4.52   4.72   4.92   5.12    5.32   5.52      5.72          5.92            6.12         6.12 
       9           4.52   4.72   4.92   5.12   5.32    5.52   5.72      5.92          6.12            6.12         6.12 
       10          6.12   6.12   6.12   6.12   6.12    6.12   6.12      6.12          6.12            6.12         6.12 

  How is an employer’s individual rate assigned? 
   
  There are three types of experience-rated accounts: New Employer, Eligible Employer, and Deficit Employer.  The  
  criteria and the 2024 rates for each type are below.  Montana UI rating system is very responsive and initially assigns 
  each employer’s rate according to their industry, and then to their record.  Over 5,500 employers received a 0% rate! 
 
                                                                                                     2024 
 New Employers                                    If your Industry Classification is                UI Rate         
                                                   A - Agriculture, Forestry, Hunting & Fishing          1.30 % 
   Positive reserve (more taxes paid in           B – Mining                                     1.20 
    than benefits charged to the account)          C – Construction                               2.10 
   Less than 3 full federal fiscal years of       D – Manufacturing                              1.00 
    experience (10/1/2020 - 9/30/2023)             E - Utilities, Transportation, Warehousing     1.00 
                                                   F - Wholesale Trade                            1.00      
    Industry rates are the average UI rate of     G - Retail Trade                               1.00      
    employers in each industry classification      H - Finance, Insurance, & Real Estate          1.00      
   Administrative Fund Tax (AFT) is 0.18%         I – Services                                   1.00      
                                                   K - Unclassified Establishments                2.10      
                                                                                                  
                                                                                     Your rate        2024 
 Eligible Employers                             If your reserve ratio is between    class will be      UI Rate         

   Reserve is positive (more taxes paid in     0.160669 to 999.999999             Eligible 01           0.00% 
    than benefits charged to the account)       0.140217 to 0.160668               Eligible 02           0.00 
   At least 3 full federal fiscal years of     0.133718 to 0.140216               Eligible 03           0.02 
    experience (10/1/2020 - 9/30/2023)          0.129755 to 0.133717               Eligible 04           0.22 
                                                0.127203 to 0.129754               Eligible 05           0.42 
   Paid wages in at least 1 of the 8 
                                                0.117128 to 0.127202               Eligible 06           0.62 
    preceding calendar quarters 
                                                0.100095 to 0.117127               Eligible 07           0.82 
   If UI rate > 0%, then AFT is 0.18%          0.075215 to 0.100094               Eligible 08           1.02 
    If UI rate = 0%, then AFT is 0.13%          0.046779 to 0.075214               Eligible 09           1.22 
                                                0 to 0.046778                      Eligible 10           1.42 
                                                                                                  
                                                                                     Your rate       2024 
 Deficit Employers                              If your reserve ratio is between   class will be    UI Rate         

   Reserve is negative (more benefits          -0.000001 to -0.006284             Deficit 01            2.92 % 
    have been charged than taxes paid in)       -0.006285 to -0.01045              Deficit 02            3.12 
   The number of years of experience           -0.010451 to -0.016983             Deficit 03            3.32 
    does not matter                             -0.016984 to -0.022219             Deficit 04            3.52 
                                                -0.02222 to -0.032991              Deficit 05            3.72 
   Administrative Fund Tax is 0.18% 
                                                -0.032992 to -0.071684             Deficit 06            3.92 
  
                                                -0.071685 to -0.154418             Deficit 07            4.12 
                                                -0.154419 to -0.375661             Deficit 08            4.32 
                                                -0.375662 to -0.691472             Deficit 09            4.52 
                                                -0.691473 to -999.999999           Deficit 10            6.12 
 
What is the Administrative Fund Tax?  All employers pay the Administrative Fund Tax (AFT) which funds some of 
the programs of the Montana Department of Labor & Industry. UI taxes are used solely for UI benefits paid. 
The AFT rate is 0.18% except for employers in Eligible Rate Classes who are assigned a 0% UI rate.  Those 
employers pay a lower AFT rate of 0.13%.   
 
What is a “Penalty Rate”?  Can I do anything to reduce my rate to the calculated rate? 
Employers who owe tax, penalty or interest or have not filed all reports when rates are calculated in December will 
receive a “penalty rate”. A penalty rate is 50% higher than your assigned rate.  To lower their rate, an employer must 
file all reports and pay all tax, penalty and interest on their account by January 19, 2024. Resolving delinquent taxes 
and reports can result in significant UI tax savings throughout the year.