News & Information

CCH® UNEMPLOYMENT INSURANCE — 3/27/08

Montana amends its UC law on various topics

Montana has amended its Unemployment Compensation Law as follows:

Employment defined. The definition of “employment” has been clarified regarding members of an LLC. The definition now applies to members of an LLC treated as a corporation pursuant to the law. Prior law applied to “an LLC that had filed with Secretary of State”.

Exclusions from employment. The exclusion for service of working members of an LLC has been clarified. The definition now refers to members of an LLC that is treated as a partnership or sole proprietorship pursuant to the law. Prior law referred to “an LLC that had filed with Secretary of State”.

Emergency declarations. The title of this section has been changed to “Administration —duties and powers of the department —emergency provisions”. A new subsection has been added that allows the department to waive, suspend or modify its rules regarding the filing of claims, continued claims, registration for work or work search if the President declares a disaster and the governor issues an executive order directing the department to do so.

Signatures on warrants. Warrants must now have the countersignature of the Commissioner of Labor and Industry or an agent authorized for that purpose. Prior law required the countersignature of a member of the department or its duly authorized agent.

Unemployment insurance administration account. This account no longer consists of money appropriated by the state from the general fund.

Liability. The title of this section has been amended to read “Liability for taxes, penalties and interest owed.” This section now clarifies that liability for unemployment insurance taxes, penalties, and interest owed by an LLC (regardless of whether it is treated as a partnership) extends jointly and severally to each member.

Failure to accept suitable work. This section now clarifies that an individual will be disqualified for benefits if he or she fails to accept a suitable offer for work from a former employer or a new employer.

Extended benefits. The criteria for extended benefit amounts now includes the requirement that the benefit amount be at least 39 times the individual's weekly benefit amount, less the amount of regular benefits paid or considered paid during the individual's applicable benefit year.

Assessments. The following new assessments have been added in lieu of prior assessments of 0.13% or 0.05%:

Beginning January 1, 2008, 0.13% of all taxable wages by employers assigned Rate Class I, Schedules I and II and Rate Class 2, Schedule 1; 0.18% of all taxable wages by employers assigned other than Rate Class I, Schedules I and II and Rate Class 2, Schedule 1; 0.18% of all taxable wages by employers assigned an industrial rate; 0.8% of total wages paid by all employers who elect to make payments in lieu of contributions; and

Beginning July 1, 2008, 0.09% of total wages paid by all experience-rated governmental entities.

Additional assessments and investment income from those assessments will be used for the administration of the unemployment program. These include: 0.05% of taxable wages paid by all employers under the rate schedules; 0.05% of taxable wages paid by employers assigned an industry rate; and 0.03% of total wages paid by all employers who elect to make payments in lieu of contributions; and

Beginning July 1, 2008, 0.04% of total wages paid by experience-rated governmental entities.

Employment security account. A new subsection allows the department to appropriate money deposited in the account for expenses incurred in the administration of the unemployment insurance program.

Experience rating for governmental entities. Rates for new governmental entities now range from 0.06% to 1.5%.

Rate schedules. Rate schedules have been revised. The average tax rates range from 1.12% (Schedule I) to 3.12% (Schedule XI). Rates for eligible employers range from 0.0% to 3.42%. Rates for deficit employers range from 3.17% to 6.37%.

Uncollected debts. This section has been repealed.

Weekly benefit amount. The determination of the maximum and minimum weekly benefit amounts has been changed. They will now be computed as follows: If Schedule II or higher is in effect, the maximum weekly benefit amount is 66.5% of the average weekly wage. The minimum weekly benefit amount must be 19% of the average weekly wage. If the minimum weekly benefit amount is not a multiple of $1, it must be computed to the nearest lower full dollar amount. If Schedule I is in effect, the maximum weekly benefit amount is 67.5% of the average weekly wage. The minimum weekly benefit amount must be 20% of the average weekly wage and, if not a multiple of $1, must be computed to the nearest lower full dollar amount.

Military transfer of spouse. A new subsection has been added that provides that an individual will not be disqualified if he or she leaves employment because of the mandatory military transfer of the individual's spouse. Any benefits paid under this provision will not be chargeable to the employer's account.

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