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Guide to Payroll Costs for Employers

Costs for 2009

Social Security: 6.2% up to $106,800 wages/salary

Medicare: 1.45% on total wages/salary

Federal Unemployment Tax (FUTA): 0.8% up to $7,000 wages/salary

Federal Income Tax Payroll Withholding

State Income Tax Withholding

Unemployment Insurance (UI) contributions and administrative fund tax: 0.13% - 6.3% of $25,100 wages/salary  For More Information on UI contribution rates:  http://uid.dli.mt.gov/tax/schedule.asp

2009 Employer Payroll Costs
  Tax Rate Wage Base
Soc. Sec. 6.20% $106,800
Medicare 1.45% No Limit
FUTA 0.80% $7,000
UI 0.13% - 6.3% $25,100

Workers' Compensation (WC): Employers are required to have Workers' Compensation coverage for employees. Insurance companies base their rates on the type of industry and the employers' loss experience.