Montana Taxable Wage Base Released for 2020

  • — September 23 2019

HELENA — The Montana Department of Labor & Industry announces that the Unemployment Insurance (UI) Taxable Wage Base for 2020 will be $34,100, an increase of $1,100 from 2019.

The taxable wage base in Montana is 80% of the average annual wage rounded to the nearest $100, per MCA 39-51-1108. The average annual wage in Montana for 2018 was $42,597.62 for UI covered employers. The average annual wage is used to determine the maximum and minimum weekly UI benefit payments recipients can receive during State Fiscal Year 2020

“Keeping the Taxable Wage Base proportionate to the average annual wage helps to keep Montana’s Unemployment Insurance trust fund healthy,” Commissioner Galen Hollenbaugh said. “This ensures that Montana is prepared for any future challenges and all Montanans can look forward to continuing economic prosperity.”

The taxable wage base applies to experience-rated employers. With the exception of governmental entities and non-profit organizations, most employers in Montana are classified as experience-rated. Experience-rated employers pay taxes on each employee’s gross wages up to the taxable wage base.  

Montana’s average annual wage has increased by over $10,000 from 2008 to 2018, according to the Quarterly Census of Employment and Wages and Bureau of Labor Statistics.

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