(1) For the purposes of reporting and paying unemployment insurance tax, the term "wages", as defined in 39-51-201, MCA, includes but is not limited to the following types of remuneration for services:
(a) holiday and vacation pay, or payments in lieu of vacation pay;
(b) payments made from an employee's gross remuneration into deferred compensation or cafeteria plans and other similar plans. Such payments are wages reportable for the period in which the compensation was earned;
(c) back pay awards, to the extent such awards are based on services performed or services that would have been performed if the worker had not been wrongfully terminated;
(d) the cash value of room and board. The department determines the cash value of room and board, unless the employment contract sets the value at an amount equal to or greater than the amounts established in this rule. Room and board has at least the following cash value:
(i) full room and board, weekly $130
(ii) meals, per week 60
(iii) meals, per meal 3
(iv) room, per week 70
(e) the cash value of all other types of non-cash payments is the market value of the item or service received;
(f) payments for termination, severance, separation, or other similar payments;
(g) advances or draws against future earnings, when paid. Payments designated as loans in the employer's records are considered wages unless the loan is to be repaid under a written schedule agreed upon by the employee and the employer;
(h) payments distributed to corporate officers or shareholders in lieu of reasonable compensation for services performed, even though designated as profits or dividends; and
(i) payments for sick leave and accident disability even if not paid directly by the employer, but by a third party such as an insurance agent. For example, if the employer pays premiums to the third party to cover sick leave or accident disability costs, the payments paid by the third party to the employee are wages. If the employee pays the premiums for such coverage, the sick leave or accident disability payments are not wages.
(2) The employer is responsible for tax payments attributable to sick leave or accident disability payments made to, or on behalf of, an employee for six months after the last calendar month in which the employee worked for such employer. The third party assumes responsibility for the payments if the third party fails to give the following information to the employer within 15 days of the end of the calendar quarter in which the payments were made:
(a) name and social security number of the employee who received the sick leave payments; and
(b) total amount of the payments.
(3) The name by which compensation is designated is immaterial.
History: 39-51-301, 39-51-302, MCA; IMP, 39-51-201, 39-51-1103, MCA; NEW, 2004 MAR p. 2808, Eff. 11/19/04; AMD, 2018 MAR p. 638, Eff. 4/1/18.