(1) The provisions of this rule apply only to those employers which:

(a) are not governmental entities; and

(b) are classified as experience rated pursuant to 39-51-1217, MCA.

(2) All wages paid to an employee by an employer are reportable as total wages. Wages paid to an employee in any single calendar year by an employer, up to and including the annual taxable wage base as defined in 39-51-1108, MCA, for that calendar year, are taxable wages. All further wages paid to the employee by that employer in that calendar year are "excess wages" and not taxable.

(3) A successor employer, as described in 39-51-1219, MCA, may use the amount of wages paid by the predecessor to determine the successor employer's taxable wages. If a successor does not acquire a portion or all of the experience-rating record of a predecessor, the successor cannot use the amount of wages paid by the predecessor to determine the successor employer's taxable wages.

(4) Prior to January 1, 2014, wages reported for an employee to another state may be used in calculating the employee's taxable wage in Montana.

(5) Beginning January 1, 2014, only wages reported to the Montana unemployment insurance program may be used to calculate an employee's taxable wage in Montana.