In Maine, employers are required to register for payroll taxes if they have hired employees in the state. This registration process ensures that employers are compliant with state tax laws and can properly withhold and remit taxes on behalf of their employees.
How Maine Payroll Registration Works
There are 2 payroll tax setup tasks you may need to complete in Maine to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Maine agencies or use Mosey to do it.
Use Mosey to register for payroll tax in Maine.
Avoid the manual work and headache of registering with state agencies yourself. Automate it with Mosey and stay compliant.
Maine Withholding Tax Setup for LLC, LLP, Corporation
Employers are required to withhold Maine income tax from wages earned in Maine. Employees must register with the Department of Administrative and Financial Services and provide the Employee’s Withholding Allowance Certificate (Form W-4ME) to determine their personal exemptions so the correct amount is withheld.
Register for Withholding Tax Online
Select "Income Tax Withholding" then complete the online form to request a new withholding tax account number.
Receive Account Confirmation and Number
Your account number will be mailed to you typically within three weeks of submission.
Configure Payroll
Your payroll provider will need your withholding tax account number and withholding schedule rate to remit taxes correctly. Employers withholding less than $18,000 for the 12 months ending the prior June 30 are required to make payments quarterly, and employers reporting Maine income tax withholding of $18,000 or more are required to make semi-weekly payments.
Maine Unemployment Insurance Setup for LLC, LLP, Corporation
Employers are required register for and to contribute to Maine Unemployment Insurance if you have paid $1,500 or more in wages in any calendar quarter or at least one employee working any part of a day during 20 different weeks of a calendar year. Note: 501(c)(3) organizations only need to register for Unemployment Insurance if they have four or more employees in Maine. During the registration process, 501(c)(3) organizations will have the choice to either pay unemployment contributions on taxable wages each quarter or elect to reimburse the Maine Unemployment Fund for benefits paid to terminated employees.
Request Unemployment Insurance Account Online
Request a new unemployment tax account with the Maine Department of Labor using the ReEmployME online service. It can take a week or more to receive your account number and contribution rate.
Configure Payroll
Provide your payroll provider with your Unemployment Insurance number and contribution rate (or reimbursable status) so that they can collect and remit the taxes on your behalf. The contribution rate is sometimes called "Current Experience Rate."
