Montana
Administrative Fund Tax Rate
Montana Governor Brian Schweitzer signed House Bill 790 into law which modifies
the rates for the Administrative Fund Tax (AFT). The bill decreases UI tax rates for most
employers while maintaining the UI Trust Fund solvency and increases the
AFT. The changes are effective beginning
January 1, 2008. For more information,
please see the Unemployment Insurance Division website at http://uid.dli.mt.gov/.
- The AFT rates effective January
1, 2008 will be:
- 0.13% of all taxable wages
paid for experience rated employers with a contribution rate of 0.0%
- 0.18% of all taxable wages
paid for employers with a contribution rate higher than 0.0%
- 0.08% of total wages paid for
reimbursable employers.
- Beginning July 1, 2008, the AFT
rate for governmental experience rated employers will be 0.09% of total
wages paid
- Tax rate notices for calendar
year 2008 reflect the assigned AFT rate
- Payroll Update 20802 includes the modifications to the
AFT (for QuickBooks Standard Payroll and QuickBooks Enhanced Payroll).
Frequently Asked
Questions
How do I know if I'm affected?
You may be affected if you currently make UI contributions in the State of
Montana
or if you currently have a valid
Montana
– UI Account
Number.
Consult the Unemployment Insurance Division, your accountant, or tax advisor
if you have questions.
When will these changes be available in QuickBooks?
QuickBooks Payroll has modified the Payroll Item for the AFT with Payroll
Update 20802 released on December 27, 2007, so that employers may enter the
rate assigned to them by the tax agency.
What do I need to do?
After January 1, 2008, once you have
downloaded Payroll Update 20802 and are ready to process paychecks dated for
2008, you will need to enter the assigned tax rate for AFT from your tax
rate notice that was mailed out by the agency earlier this month. In order to enter the AFT rate, from the Payroll Item List, select MT – Admin. Fund Tax, click Next to get to the Company tax rate screen. Enter the AFT rate as a
percentage for all four quarters. Continue to click Next, and
then click Finish.
For reimbursable and governmental employers, the rate should be entered as
0.0%, and a customized Payroll Item should be set up in order to calculate the
tax due on the total wages paid in the tax quarter. There is no taxable wage base limit applied
to the AFT for this type of employer. For more information on setting up AFT for governmental and reimbursable
employers, please see the
Supported
State
and Local Payroll Tax
Information web pages located at http://web.intuit.com/quickbooks/products/tax/statetax.html.
