Maine Hourly Paycheck Calculator
With a lot on your plate as a small business owner, the last thing you want to do is think about payroll taxes. But you know it’s a necessary part of running your business. Keeping up to date with the changing laws, rules, and forms is challenging. That’s why we answered the most commonly asked questions about Maine payroll taxes and paycheck laws.
Here, you’ll find current answers to age-old questions like “What’s the minimum wage in Maine?”
Maine state payroll taxes
How is withholding tax calculated in Maine?
Employers should have employees complete Form W-4ME, Employee’s Withholding Allowance Certificate, when they start work so you can calculate the amount of tax to take out.
With the information on this form for tax filing status and the number of allowances, you’ll be able to use Maine’s tax tables or do some math to calculate the withholding tax. But you can make calculations easier by using payroll software.
When is withholding tax paid in Maine?
Employers pay withholding tax to Maine either semi-weekly or quarterly based on the amount of tax you withhold in a year.
| Payment Frequency for Maine’s Withholding Tax | |
| Annual withholding tax | Payment frequency |
| $18,000 or more | Semi-weekly |
| $0 – $17,999 | Quarterly |
Electronic payments are required if you owe more than $10,000 per year. But if you owe less, you can send in a check, and you’ll need to send Form 900ME, Payment Voucher for Maine Income Tax Withheld, as well. This form isn’t required if you pay online.
Quarterly and annual reconciliations
Employers will need to submit quarterly and annual reconciliations of their withholding tax, ensuring that what was paid was what was owed.
Quarterly reports use Form 941ME, Employer’s Return of Maine Income Tax Withholding, and annual reports use Form W-3ME, Reconciliation of Maine Income Tax Withheld, in 2022. Both of these forms need to be filed electronically.
You may need to submit copies of your federal Forms W-2, Wage and Tax Statement, or 1099 with your annual reconciliation. Generally, if you issue 250 or more of these federal forms, you’ll need to file copies of them electronically with the state.
How is the unemployment tax calculated in Maine?
Maine’s unemployment tax is charged on the first $12,000 of each employee’s wage each year. Employers pay this tax at rates that range from 0.74% to 6.37%.
Quarterly payments and wage reports are required using Form ME UC-1, Unemployment Contributions Report.
What’s the minimum wage in Maine?
For 2022, the minimum wage in Maine is $12.75 per hour—and employees in the service industry must be paid at least $6.38 per hour.
Do new hires need to be reported to Maine?
New and rehired employees need to be reported within seven days of hire using Maine’s Employer Portal.
When are final paychecks due?
When employees resign or are terminated, final wages are due no later than the next regularly scheduled payday.
When is Workers’ Compensation insurance required in Maine?
Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
Do hourly employees need to be paid overtime in Maine?
Hourly employees need to be paid overtime for any hours worked over 40 in a workweek. The overtime pay must be at least 1 ½ times their regular hourly wage.
Does Maine require employers to provide paid time off?
Employers with more than ten regular employees are required to provide paid leave to employees. Be sure to check Maine’s Department of Labor webpage for all the details.
Federal payroll taxes in Maine
There are four federal payroll taxes to be aware of.
Employee-paid federal payroll taxes
Federal withholding tax
Employees must pay their federal income tax bill throughout the year via payroll withholding.
How much you’ll withhold depends on information on Form W-4, Employee’s Withholding Certificate. This form needs to be completed when an employee starts working for you and updated anytime their tax situation changes.
With information from Form W-4, you’ll be able to use federal tax tables to figure out how much tax to take out. But payroll software can save you a lot of time and money by making calculations for you.
Additional Medicare tax
The Additional Medicare tax is withheld from any workers earning more than $200,000 per year. You need to withhold 0.9% on all wages over $200,000 each year.
Employer-paid federal payroll taxes
Federal unemployment tax
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but most employers only have to pay 0.6% each year.
Joint employer and employee-paid federal payroll taxes
FICA tax
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
| FICA Tax | |
| Social Security | 6.2% on the first $147,000 of each employee’s wages in 2022 |
| Medicare | 1.45% on all wages |
Filing and paying federal payroll taxes
You’ll pay your federal payroll taxes depending on how much you owe.
| Semi-weekly or Monthly Federal Payroll Taxes |
| Federal withholding tax |
| Additional Medicare tax |
| FICA tax |
| Quarterly or Annual Federal Payroll Taxes |
| Federal unemployment tax |
Along with paying your federal payroll taxes on time, you’ll need to file payroll tax returns.
Quarterly tax returns are due using Form 941, Employer’s Quarterly Federal Tax Return. You’ll report and reconcile your withholding, Additional Medicare, and FICA taxes on this form.
Form 940, Annual Federal Unemployment (FUTA) Tax Return, is required whenever you make a FUTA payment.
Disclaimer
The information provided by the Employer Tax Calculator is for general information and estimation. All of the taxes or fees that apply to your business may not be accounted for, or fully up to date. Gusto, Inc. (dba “Gusto”) does not promise or guarantee that the information in the Employer Tax Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct result or an indirect consequence of its use. By using the Employer Tax Calculator, you waive any rights or claims you may have against Gusto in connection with its use.