Payroll Maine, Unique Aspects of Maine Payroll Law and Practice

The Maine State Agency that oversees thethe hiring or rehiring. The information can be sent
collection and reporting of State income taxesas a W4 or equivalent by mail, fax or
deducted from payroll checks is: Maine Revenueelectronically. There is a written warning penalty
Services Withholding Tax Division State Officethen a $200 per month penalty for a late report
Bldg. P.O. Box 1061 Augusta, ME 04332-1061 (207)in Maine. The Maine new hire-reporting agency can
626-8475 Maine requires that you use Maine formbe reached at 207-287-2886 or on the web at
"W-4ME, Employee's Maine Withholding AllowanceMaine does allow compulsory direct deposit but
Certificate" instead of a Federal W-4 Form forthe employee's choice of financial institution must
Maine State Income Tax Withholding. Not allmeet federal Regulation E regarding choice of
states allow salary reductions made under Sectionfinancial institutions. Maine requires the following
125 cafeteria plans or 401(k) to be treated in theinformation on an employee's pay stub: Gross and
same manner as the IRS code allows. In MaineNet Earnings pay period dates hours worked
cafeteria plans are not taxable for income taxitemized deductions Maine requires that employee
calculation; not taxable for unemploymentbe paid in intervals of not more than 16 days; less
insurance purposes. 401(k) plan deferrals are notfrequently for FLSA-exempt employees. Maine
taxable for income taxes; taxable forrequires that the lag time between the end of the
unemployment purposes. In Maine supplementalpay period and the payment of wages to the
wages are taxed at a 5% flat rate. You must fileemployee not exceed eight days. Maine payroll
your Maine State W-2s by magnetic media if youlaw requires that involuntarily terminated
are required to file your federal W-2s byemployees must be paid their final pay earlier of
magnetic media. The Maine State Unemploymentnext regular payday or 14 days after demand for
Insurance Agency is: Bureau of Employmentpayment and that voluntarily terminated
Security Division of Unemployment Compensationemployees must be paid their final pay earlier of
P.O. Box 309 20 Union St. Augusta, MEnext regular payday or 14 days after demand for
04332-0309 (207) 287-3176 The State of Mainepayment or by mail if employee requests it.
taxable wage base for unemployment purposes isThere is no provision in Maine law concerning
wages up to $12,000.00. Maine requires Magneticpaying deceased employees. Escheat laws in Maine
media reporting of quarterly wage reporting if therequire that unclaimed wages be paid over to the
employer has at least 250 employees that theystate after one year. The employer is further
are reporting that quarter. Unemployment recordsrequired in Maine to keep a record of the wages
must be retained in Maine for a minimum periodabandoned and turned over to the state for a
of four years. This information generally includes:period of 10 years. Maine payroll law mandates no
name; social security number; dates of hire, rehiremore than 50% of minimum wage may be used
and termination; wages by period; payroll payas a tip credit. In Maine the payroll laws covering
periods and pay dates; date and circumstances ofmandatory rest or meal breaks are only that all
termination. The Maine State Agency chargedemployees must have 30 minutes rest after six
with enforcing the state wage and hour laws is:hours of work. Maine statute requires that wage
Department of Labor Bureau of Labor Standardsand hour records be kept for a period of not less
Wage and Hour Division 45 State House Stationthan three years. These records will normally
Augusta, ME 04333-0045 (207) 624-6400 Theconsist of at least the information required under
minimum wage in Maine is $6.25 per hour. TheFLSA. The Maine agency charged with enforcing
general provision in Maine concerning payingChild Support Orders and laws is: Division of
overtime in a non-FLSA covered employer is oneSupport Enforcement Department of Human
and one half times regular rate after 40-hourServices 11 State House Station Augusta, ME
week. Maine State new hire reporting04333 (207) 287-2826 Maine has the following
requirements are that every employer mustprovisions for child support deductions: When to
report every new hire and rehire. The employerstart Withholding? Immediately after receipt of
must report the federally required elements of:order. When to send Payment? Within 7 days of
Employee's name Employee's address Employee'sPayday. When to send Termination Notice? Within
date of birth. Employee's UBI or UI number.15 days of termination. Maximum Administrative
Employee's social security number Employer'sFee? $2 per transaction. Withholding Limits?
name Employers address Employer's FederalFederal Rules under CCPA. Please note that this
Employer Identification Number (EIN) Thisarticle is not updated for changes that can and will
information must be reported within 7 days ofhappen from time to time.