HOUSE BILL NO. 282
INTRODUCED BY R. JOHNSON
AN ACT REALLOCATING TAX RATES AND REVENUE COLLECTED FROM EMPLOYERS TO FUND THE EMPLOYMENT SECURITY ACCOUNT AND TO MAINTAIN LOCAL DELIVERY OF EMPLOYMENT SERVICES; INCREASING THE TAX RATE ON TAXABLE WAGES FOR EXPERIENCE-RATED EMPLOYERS FROM 0.1 PERCENT TO 0.13 PERCENT; CHANGING THE ROUNDING CALCULATION OF THE TAX RATE FOR AN EMPLOYER WHO HAS FAILED TO FILE PAYROLL REPORTS FROM THE NEAREST ONE-TENTH OF 1 PERCENT TO THE NEAREST ONE-HUNDREDTH OF 1 PERCENT; DECREASING THE UNEMPLOYMENT INSURANCE TAX RATE ON TAXABLE WAGES FOR EXPERIENCE-RATED EMPLOYERS BY 0.03 PERCENT; AMENDING SECTIONS 39-51-404, 39-51-409, 39-51-1213, AND 39-51-1218, MCA; AND PROVIDING A DELAYED APPLICABILITY DATE.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MONTANA:
Section 1. Section 39-51-404, MCA, is amended to read:
"39-51-404. Administrative expenses. (1) Money credited to the account of this state in the unemployment trust fund by the secretary of the treasury of the United States pursuant to sections 903 and 904 of the Social Security Act (42 U.S.C. 1103 and 1104), as amended, may be requisitioned and used for the payment of expenses incurred for the administration of this chapter pursuant to a specific appropriation by the legislature if the expenses are incurred and the money is requisitioned after the enactment of an appropriation law that:
(a) specifies the purposes for which the money is appropriated and the amounts appropriated;
(b) limits the period within which the money may be expended to a period ending not more than 2 years after the date of the enactment of the appropriation law; and
(c) limits the amount that may be used during any 12-month period beginning on July 1 and ending on the next June 30 to an amount not exceeding the amount by which the aggregate of the amounts credited to the account of this state pursuant to sections 903 and 904 of the Social Security Act (42 U.S.C. 1103 and 1104), as amended, during the same 12-month period and the 34 preceding 12-month periods exceeds the aggregate of the amounts used pursuant to this section and charged against the amounts credited to the account of this state during any of the 35 12-month periods.
(2) For the purposes of this section, amounts used during any 12-month period must be charged against equivalent amounts that were first credited and that are not already charged, except that an amount used for administration during any 12-month period may not be charged against any amount credited during a 12-month period earlier than the 34th preceding period. Money requisitioned for the payment of expenses of administration pursuant to this section must be deposited in the unemployment insurance administration account but, until expended, must remain a part of the unemployment insurance fund.
(3) The department shall maintain a separate record of the deposit, obligation, expenditure, and return of funds deposited. If any money deposited is for any reason not to be expended for the purpose for which it was appropriated or if it remains unexpended at the end of the period specified by the law appropriating the money, it must be withdrawn and returned to the secretary of the treasury of the United States for credit to this state's account in the unemployment trust fund.
(4) An assessment equal to 0.1% 0.13% of all taxable wages provided for in 39-51-1108 and 0.05% of total wages paid
by employers not covered by an experience rating must be levied against and paid by all employers. All assessments and
investment income must be deposited in the employment security account provided for in 39-51-409."
Section 2. Section 39-51-409, MCA, is amended to read:
"39-51-409. Employment security account. (1) There is an account created in the state special revenue fund called the employment security account.
(2) The department may transfer funds from the account to the unemployment insurance fund account provided for in
39-51-402 upon receiving approval from the budget director that the transfer will not decrease the money in the account
below the level appropriated by the legislature to provide employment office services programs.
(3) The department may transfer appropriation authority in the employment office program services programs between
the federal special revenue and the state special revenue fund types."
Section 3. Section 39-51-1213, MCA, is amended to read:
"39-51-1213. Classification of employers for experience rating purposes. (1) The department shall for each calendar year classify employers in accordance with their actual experience in the payment of contributions and with respect to benefits charged against their accounts, with contribution rates reflecting benefit experience. Each employer's rate for a calendar year must be determined on the basis of the employer's record as of October 1 of the preceding calendar year.
(2) In making the classification, each eligible and deficit employer's contribution rate is determined in the manner set forth below:
(a) Each employer is given an "experience factor", which is contributions paid since October 1, 1981, minus benefits charged on each employer's account since October 1, 1981, divided by the employer's average annual taxable payroll rounded to the next lower dollar amount for the 3 fiscal years immediately preceding the computation date. The computation of the "experience factor" must be to six decimal places.
(b) Schedules must be prepared listing all eligible and deficit employers in inverse numerical order of their experience factors. There must be listed on the schedules for each employer in addition to the experience factor:
(i) the amount of the employer's taxable payroll for the fiscal year ending on the computation date; and
(ii) the cumulative total consisting of the sum of the employer's taxable payroll for the fiscal year ending on the computation date and the corresponding taxable payrolls for all other employers preceding that employer on the schedules.
(3) The cumulative taxable payroll amounts listed on the schedules provided for in 39-51-1218 must be segregated into groups that will yield approximately the average tax rate according to the tax schedule assigned for that particular taxable year. Each group must be identified by the rate class number listed in the table that represents the percentage limits of each group. Each employer on the schedules is assigned that contribution rate opposite that employer's rate class for the tax schedule in effect for the taxable year.
(4) (a) If the grouping of rate classes requires the inclusion of exactly one-half of an employer's taxable payroll, the employer is assigned the lower of the two rates designated for the two classes in which the halves of that employer's taxable payroll are required.
(b) If the group of rate classes requires the inclusion of a portion other than exactly one-half of an employer's taxable payroll, the employer is assigned the rate designated for the class in which the greater part of that employer's taxable payroll is required.
(c) If one or more employers on the schedules have experience factors identical to that of the last employer included in a particular rate class, all such employers are included in and assigned the contribution rate specified for the class, notwithstanding the provisions of 39-51-1214.
(5) If the taxable payroll amount, the experience factor, or both of any eligible or deficit employer listed on the schedules is changed, the employer is placed in that position on the schedules that the employer would have occupied had that employer's taxable payroll amount or experience factor as changed been used in determining that employer's position in the first instance. However, the change does not affect the position or rate classification of any other employer listed on the schedules and does not affect the rate determination for previous years.
(6) An employer who has not filed all required payroll reports or paid all taxes, penalties, and interest due by the cutoff
date must be assigned a contribution rate in effect for the taxable year for the employer's classification as an eligible, deficit,
or new employer, plus an additional assessment of 50% of the employer's assigned contribution rate, rounded to the nearest
1/10 1/100 of 1%."
Section 4. Section 39-51-1218, MCA, is amended to read:
"39-51-1218. Rate schedules.
SCHEDULES OF CONTRIBUTION RATES -- Part I Sched. Sched. Sched. Sched.
I II III IV
Minimum Ratio of
Fund to
Total Wages (.0260) (.0245) (.0225) (.0200)
Average Tax Rate 1.4 1.6 1.8 2.0
Rate Class Contribution Rates For Eligible Employers
1 0.0% 0.1% 0.3% 0.5%
2 0.1 0.3 0.5 0.7
3 0.3 0.5 0.7 0.9
4 0.5 0.7 0.9 1.1
5 0.7 0.9 1.1 1.3
6 0.9 1.1 1.3 1.5
7 1.1 1.3 1.5 1.7
8 1.3 1.5 1.7 1.9
9 1.5 1.7 1.9 2.1
10 1.7 1.9 2.1 2.3
Rate Class Contribution Rates For Deficit Employers
1 3.2% 3.4% 3.6% 3.8%
2 3.4 3.6 3.8 4.0
3 3.6 3.8 4.0 4.2
4 3.8 4.0 4.2 4.4
5 4.0 4.2 4.4 4.6
6 4.2 4.4 4.6 4.8
7 4.4 4.6 4.8 5.0
8 4.6 4.8 5.0 5.2
9 4.8 5.0 5.2 5.4
10 6.4 6.4 6.4 6.4
SCHEDULES OF CONTRIBUTION RATES -- Part II
Sched. Sched. Sched. Sched. Sched. Sched.
V VI VII VIII IX X
(.0170) (.0135) (.0095) (.0075) (.0050) (.....)
2.2 2.4 2.6 2.8 3.0 3.2
Contribution Rates For Eligible Employers
0.7% 0.9% 1.1% 1.3% 1.5% 1.7%
0.9 1.1 1.3 1.5 1.7 1.9
1.1 1.3 1.5 1.7 1.9 2.1
1.3 1.5 1.7 1.9 2.1 2.3
1.5 1.7 1.9 2.1 2.3 2.5
1.7 1.9 2.1 2.3 2.5 2.7
1.9 2.1 2.3 2.5 2.7 2.9
2.1 2.3 2.5 2.7 2.9 3.1
2.3 2.5 2.7 2.9 3.1 3.3
2.5 2.7 2.9 3.1 3.3 3.5
Contribution Rates For Deficit Employers
4.0% 4.2% 4.4% 4.6% 4.8% 5.0%
4.2 4.4 4.6 4.8 5.0 5.2
4.4 4.6 4.8 5.0 5.2 5.4
4.6 4.8 5.0 5.2 5.4 5.6
4.8 5.0 5.2 5.4 5.6 5.8
5.0 5.2 5.4 5.6 5.8 6.0
5.2 5.4 5.6 5.8 6.0 6.2
5.4 5.6 5.8 6.0 6.2 6.4
5.6 5.8 6.0 6.2 6.4 6.4
6.4 6.4 6.4 6.4 6.4 6.4
SCHEDULES OF CONTRIBUTION RATES - Part 1
Sched. Sched. Sched. Sched.
I II III IV
Minimum Ratio of
Fund to
Total Wages (.0260) (.0245) (.0225) (.0200)
Average Tax Rate 1.37 1.57 1.77 1.97
Rate Class Contribution Rates for Eligible Employers
1 0.00% 0.07% 0.27% 0.47%
2 0.07 0.27 0.47 0.67
3 0.27 0.47 0.67 0.87
4 0.47 0.67 0.87 1.07
5 0.67 0.87 1.07 1.27
6 0.87 1.07 1.27 1.47
7 1.07 1.27 1.47 1.67
8 1.27 1.47 1.67 1.87
9 1.47 1.67 1.87 2.07
10 1.67 1.87 2.07 2.27
Rate Class Contribution Rates for Deficit Employers
1 3.17% 3.37% 3.57% 3.77%
2 3.37 3.57 3.77 3.97
3 3.57 3.77 3.97 4.17
4 3.77 3.97 4.17 4.37
5 3.97 4.17 4.37 4.57
6 4.17 4.37 4.57 4.77
7 4.37 4.57 4.77 4.97
8 4.57 4.77 4.97 5.17
9 4.77 4.97 5.17 5.37
10 6.37 6.37 6.37 6.37
SCHEDULES OF CONTRIBUTION RATES - Part II
Sched. Sched. Sched. Sched. Sched. Sched.
V VI VII VIII IX X
(.0170) (.0135) (.0095) (.0075) (.0050) (....)
2.17 2.37 2.57 2.77 2.97 3.17
Contribution Rates for Eligible Employers
0.67% 0.87% 1.07% 1.27% 1.47% 1.67%
0.87 1.07 1.27 1.47 1.67 1.87
1.07 1.27 1.47 1.67 1.87 2.07
1.27 1.47 1.67 1.87 2.07 2.27
1.47 1.67 1.87 2.07 2.27 2.47
1.67 1.87 2.07 2.27 2.47 2.67
1.87 2.07 2.27 2.47 2.67 2.87
2.07 2.27 2.47 2.67 2.87 3.07
2.27 2.47 2.67 2.87 3.07 3.27
2.47 2.67 2.87 3.07 3.27 3.47
Contribution Rates for Deficit Employers
3.97% 4.17% 4.37% 4.57% 4.77% 4.97%
4.17 4.37 4.57 4.77 4.97 5.17
4.37 4.57 4.77 4.97 5.17 5.37
4.57 4.77 4.97 5.17 5.37 5.57
4.77 4.97 5.17 5.37 5.57 5.77
4.97 5.17 5.37 5.57 5.77 5.97
5.17 5.37 5.57 5.77 5.97 6.17
5.37 5.57 5.77 5.97 6.17 6.37
5.57 5.77 5.97 6.17 6.37 6.37
6.37 6.37 6.37 6.37 6.37 6.37"
Section 5. Applicability. [This act] applies to taxable wages paid on or after January 1, 2000.
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Latest Version of HB 282 (HB0282.ENR)
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