Montana Gov. Steve Bullock has announced that for the first time since 2009 unemployment insurance taxes will drop for state employers in 2016. The new Insurance Contribution Rate Schedule will be set low enough for the average Montana employer to see savings of $106.80 per employee. The taxable wage base will remain $30,500.
“Montana’s economy is strong and we have more people working in our state than ever before,” said Gov. Steve 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.”
The above applies to all Montana employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes. Many Montana nonprofits could save even more money by opting out of the unemployment insurance tax system – an advantage provided to them by the IRS. Doing so affords nonprofits unique avenues that allow them to strategically handle unemployment claims administration and unemployment insurance taxes in ways that for-profits can only dream about.
Contact us today for more information concerning your nonprofit unemployment insurance tax advantages.