MontanaHB 21069th Legislature, Regular Session (2025)HouseWALLET

Revise laws relating to unemployment insurance program collection rates and uses

Sponsored By: Steve Fitzpatrick (Republican)

Signed by Governor

Unemployment InsuranceRevenue, StateState Finance

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 0 benefits, 1 costs, 2 mixed.

New unemployment tax rates for employers

Beginning 2025-10-01, a new Schedule I sets employer unemployment tax rates. Eligible employers in classes 1–10 pay 0.00%, 0.00%, 0.00%, 0.02%, 0.22%, 0.42%, 0.62%, 0.82%, 1.02%, or 1.22% of taxable wages. Deficit employers in classes 1–10 pay 2.72%, 2.92%, 3.12%, 3.32%, 3.52%, 3.72%, 3.92%, 4.12%, 4.32%, or 6.12%. You owe the rate for your class times your taxable wages.

New identity checks for unemployment claims

Beginning 2025-10-01, the Department of Labor and Industry checks each unemployment claim against multiple records. It uses a commercial ID database, the prison inmate list, the National Directory of New Hires, and motor vehicle records allowed by law. The department also reports these checks to the Economic Affairs Interim Committee.

Fraud penalty money funds UI enforcement

Seventy percent of civil penalties for false unemployment claims now goes to account 39-51-406, and 30% goes to the unemployment insurance fund (39-51-401). Criminal penalties deposit into the federal special revenue account. Money in these accounts can be appropriated to the labor department to find unpaid taxes and overpayments when federal grants are not enough. The automatic year-end transfer to the trust fund is removed. These changes take effect immediately, on passage and approval.

Sponsors & Cosponsors

Sponsor

Steve Fitzpatrick
Republican • House

Cosponsors

Carl Glimm
Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 298 • No: 2

Senate vote • 3/26/2025

Do Concur

Yes: 49 • No: 1

Senate vote • 3/21/2025

Do Concur

Yes: 49 • No: 1

House vote • 2/5/2025

Do Pass

Yes: 100 • No: 0

House vote • 1/29/2025