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2016 Unemployment Insurance Rates Decrease for Many Montana Businesses

2016 Unemployment Insurance Rates Decrease for Many Montana Businesses

Strong Economy, Low Unemployment Driving Rate Decrease

Tuesday, November 24, 2015/Categories: Department of Labor and Industry, Governor's Office/Tags:

FOR IMMEDIATE RELEASE, November 24, 2015
 

CONTACT: Tim Crowe, Communications Director, Governor’s Office, 444.9844

Mike Wessler, Deputy Communications Director, 444.9725

Jake Troyer, Communications Director, DLI, 444.1674

Helena, Mont.—For the first time since 2009, the Unemployment Insurance (UI) Contribution Rate Schedule will be set at its lowest level for Montana employers, saving employers money on their unemployment insurance taxes in 2016. On average, businesses that pay a wage at or above the taxable wage base ($30,500) will see a savings of $106.80 per employee. 

Governor Steve Bullock and Commissioner of Labor & Industry Pam Bucy announced that the Unemployment Insurance Contribution Rate Schedule will be adjusted from Schedule 3 to Schedule 1 in 2016. This adjustment means the unemployment contribution rates for most employers in 2016 will be over 26 percent lower than in 2015. The current Schedule 3 average tax rate is 1.52 percent. For 2016, the average rate will be 1.12 percent. As a result, most Montana businesses will see a decrease in UI taxes due for the next year.

“Montana’s economy is strong and we have more people working in our state than ever before,” said Bullock. “Montana is the best state in the nation for entrepreneurs, this reduction means that these small businesses are able to keep more money in their pockets and focus those funds on growing their operation.”

Because of Montana’s strong economy and low unemployment rate, employers’ contribution rates have steadily decreased since 2013.

“For the second year in a row, we’ve seen unemployment insurance rates drop two full levels,” said Bucy.

Unemployment Insurance benefits reduce the burden of being out of work, maintain purchasing power in local communities, and allow laid off workers to stay in-state so they will be available for re-employment. The program stabilizes the local and state economy by preventing a sharp drop in consumer spending during periods of unemployment. These benefits are paid with Montana employers UI contributions.

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