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Payroll Maine, Unique Aspects of Maine Payroll Law and Practice

The Maine State Agency that oversees thebe sent as a W4 or equivalent by mail, fax or
collection and reporting of State incomeelectronically. There is a written warning
taxes deducted from payroll checks is: Mainepenalty then a $200 per month penalty for a
Revenue Services Withholding Tax Divisionlate report in Maine. The Maine new
State Office Bldg. P.O. Box 1061 Augusta, MEhire-reporting agency can be reached at
04332-1061 (207) 626-8475 Maine requires207-287-2886 or on the web at Maine does
that you use Maine form "W-4ME, Employee'sallow compulsory direct deposit but the
Maine Withholding Allowance Certificate"employee's choice of financial institution
instead of a Federal W-4 Form for Maine Statemust meet federal Regulation E regarding
Income Tax Withholding. Not all states allowchoice of financial institutions. Maine
salary reductions made under Section 125requires the following information on an
cafeteria plans or 401(k) to be treated inemployee's pay stub: Gross and Net Earnings
the same manner as the IRS code allows. Inpay period dates hours worked itemized
Maine cafeteria plans are not taxable fordeductions Maine requires that employee be
income tax calculation; not taxable forpaid in intervals of not more than 16 days;
unemployment insurance purposes. 401(k) planless frequently for FLSA-exempt employees.
deferrals are not taxable for income taxes;Maine requires that the lag time between the
taxable for unemployment purposes. In Maineend of the pay period and the payment of
supplemental wages are taxed at a 5% flatwages to the employee not exceed eight days.
rate. You must file your Maine State W-2s byMaine payroll law requires that involuntarily
magnetic media if you are required to fileterminated employees must be paid their final
your federal W-2s by magnetic media. Thepay earlier of next regular payday or 14 days
Maine State Unemployment Insurance Agency is:after demand for payment and that voluntarily
Bureau of Employment Security Division ofterminated employees must be paid their final
Unemployment Compensation P.O. Box 309 20pay earlier of next regular payday or 14 days
Union St. Augusta, ME 04332-0309 (207)after demand for payment or by mail if
287-3176 The State of Maine taxable wageemployee requests it. There is no provision
base for unemployment purposes is wages up toin Maine law concerning paying deceased
$12,000.00. Maine requires Magnetic mediaemployees. Escheat laws in Maine require that
reporting of quarterly wage reporting if theunclaimed wages be paid over to the state
employer has at least 250 employees that theyafter one year. The employer is further
are reporting that quarter. Unemploymentrequired in Maine to keep a record of the
records must be retained in Maine for awages abandoned and turned over to the state
minimum period of four years. Thisfor a period of 10 years. Maine payroll law
information generally includes: name; socialmandates no more than 50% of minimum wage may
security number; dates of hire, rehire andbe used as a tip credit. In Maine the payroll
termination; wages by period; payroll paylaws covering mandatory rest or meal breaks
periods and pay dates; date and circumstancesare only that all employees must have 30
of termination. The Maine State Agencyminutes rest after six hours of work. Maine
charged with enforcing the state wage andstatute requires that wage and hour records
hour laws is: Department of Labor Bureau ofbe kept for a period of not less than three
Labor Standards Wage and Hour Division 45years. These records will normally consist of
State House Station Augusta, ME 04333-0045at least the information required under FLSA.
(207) 624-6400 The minimum wage in Maine isThe Maine agency charged with enforcing Child
$6.25 per hour. The general provision inSupport Orders and laws is: Division of
Maine concerning paying overtime in aSupport Enforcement Department of Human
non-FLSA covered employer is one and one halfServices 11 State House Station Augusta, ME
times regular rate after 40-hour week. Maine04333 (207) 287-2826 Maine has the following
State new hire reporting requirements areprovisions for child support deductions: When
that every employer must report every newto start Withholding? Immediately after
hire and rehire. The employer must report thereceipt of order. When to send Payment?
federally required elements of: Employee'sWithin 7 days of Payday. When to send
name Employee's address Employee's date ofTermination Notice? Within 15 days of
birth. Employee's UBI or UI number.termination. Maximum Administrative Fee? $2
Employee's social security number Employer'sper transaction. Withholding Limits? Federal
name Employers address Employer's FederalRules under CCPA. Please note that this
Employer Identification Number (EIN) Thisarticle is not updated for changes that can
information must be reported within 7 days ofand will happen from time to time.
the hiring or rehiring. The information can



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