Beginning January 1, 2025, covered employers in Maine will be required to withhold and remit employee contributions and pay employer contributions for a new paid family and medical leave insurance program [H.B. 163, L. 2023]. The program will be administered by the Maine Department of Labor (DOL). Eligible employees may begin using benefits on January 1, 2026.
Premium Contributions
Beginning January 1, 2025, employers will file contribution reports and remit premiums on a quarterly basis. The premium contribution amount may not be more than 1% of wages, up to the social security wage base. Beginning in 2028, the DOL will set the premium contribution rates based on various factors.
An employer with 15 or more employees is required to remit 100% of the premium, with up to 50% deducted from employee wages. Small employers with fewer than 15 employees are required to remit 50% of the premium and may deduct the 50% from employee wages. Small employers are only required to deduct and remit employee contributions; employer contributions are not required.
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Lia Coniglio, Esq., is Managing Editor of PayState Update and Senior Manager of State Payroll Information Resources for PayrollOrg.
