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Payroll and Benefits Guide United States – Maine

Last updated: Mar 29, 2023

Currency
United States Dollar (USD)
Employer Taxes
11.09% - 22.12%
Payroll Frequency
Semi Monthly
Employee Costs
8.55%
Capital
Augusta
Date Format
mm/dd/yyyy
Fiscal Year
1 January - 31 December
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Contributions

Employer

Employer Payroll Contributions

0.53% –6.16% (Maximum taxable wages is 12,000 USD) (Includes 0.07% CSFF and 0.14% UPAF) Unemployment Insurance (State)
2.31% Unemployment- New Employer (State)
6.20% (Maximum taxable wages is 160,200.00 USD) FICA Social Security (Federal)
1.45% FICA Medicare (Federal)
0.60% – 6.00% (Maximum taxable wages is 7,000 USD) FUTA (Federal Unemployment Tax Act) The FUTA tax rate is 6.0% with a taxable wage base of 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to 0.6%.
11.09% – 22.12% Total Employment Cost

Employee

Employee Payroll Contributions

6.20%(Maximum taxable wages is 160,200.00 USD) FICA Social Security (Federal)
1.45% (Maximum taxable wages is 160,200.00 USD) FICA Medicare (Federal)
0.90% Additional tax on earnings over 200,000 USD (High-income earners also pay an additional 0.9 percent in Medicare taxes)
7.65% – 8.55% Total Employee Cost

Employee

Employee Income Tax

State Tax – Single Filers

5.80%

0 USD to 24,500 USD

6.75%

24,5001 USD to 58,050 USD

7.15%

more than 58,050 USD

State Tax – Married, Filing Jointly

5.80%

0 USD to 49,000USD

6.75%

49,001 USD to 116,100 USD

7.15%

more than 116,100 USD

Standard Deduction & Personal Exemption

Single

12,950 USD

Couple / Married

25,900 USD

Personal exemption

Single

4,700 USD

Couple /Married Filing Jointly

9,400 USD

Employee Income Tax

Federal Tax – Singles

10.00%

Up to 11,000 USD

12.00%

11,001 USD to 44,725 USD

22.00%

44,726 USD to 95,375 USD

24.00%

95,376 USD to 182,100 USD

32.00%

182,101 USD to 231.250 USD

35.00%

231,251 USD to 578,125 USD

37.00%

578,126 USD or more

Federal Tax – Married, filing jointly

10.00%

Up to 22,000 USD

12.00%

22,001 USD to 89,450 USD

22.00%

89,451 USD to 190,750 USD

24.00%

190,751 USD to 364,200 USD

32.00%

364,201 USD to 462,500 USD

35.00%

462,501 USD to 693,750 USD

37.00%

693,751 USD or more

Federal Tax – Heads of Households

10.00%

Up to 15,700 USD

12.00%

15,701 USD to 59,850 USD

22.00%

59,851 USD to 95,350 USD

24.00%

95,351 USD to 182,100 USD

32.00%

182,101 USD to 231,250 USD

35.00%

231,251 USD to 578,100 USD

37.00%

578,101 USD or more

Standard Deduction and Personal Exemption

13,850.00 USD

Single

27,700.00 USD

Married Filing Jointly

20,800.00 USD

Head of Household

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The State Minimum Wage Law sets the Minimum Wage in Maine at 13.80 USD.

There are also other minimum requirements:

Minimum Cash wage (tipped employee)                                6.90 USD

Maximum Cash wage (tipped employee)                                6.90 USD

Payroll

Payroll Cycle

In general, employees in Maine are paid semi-monthly, with payments made twice a month on set dates as stipulated in the contract. The payment cannot exceed a 16 day gap.

13th Salary

There is no legislation for 13th-month payments in Maine.

Working Hours

General

In Maine, the working week is a maximum of 40 hours per week, 8 hours per day.

Overtime

Maine adheres to the Fair Labour Standards Act (FLSA), and work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay. If employees are scheduled to work on weekends or rest days, no additional payment is required. However, should an employer request an employee to work in exceptional circumstances on these days, then overtime is paid at the rate of 150% of the regular pay.

Working Week

Monday-Friday

Leave

Paid Time Off

Maine does not have any state statute governing the amount and payment of vacation time; however, it is common for employers to decide whether to offer paid or unpaid vacation leave.  This must comply with employment law and must be stipulated in the Collective Bargaining Agreements.

Public Holidays

There are 12 official holidays, however private employers are not required to provide either time off or overtime pay on these days.

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

FMLA eligible employees are entitled to:

  • 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • Care for the employee’s spouse, child, or parent who has a severe health condition.
  • Leave in the event of a serious health condition that makes the employee unable to perform the essential functions of their job.
  • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

Or

  • 26 working weeks of leave during a single one-year period to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

In Maine, for employees with 120 days of service, employers must provide one hour of paid leave for every 40 hours worked, up to a maximum of 40 hours of paid sick leave a year.

In addition, there is the Maine Family Medical Leave Requirements Act (MFMLRA) which requires employers (with 15 or more employees and employees with at least 12 months of service) to provide their employees with ten weeks of unpaid family medical leave in a period of any two years. Employees must give adequate notice before the leave dates (at least 30 days), and the employee may use the leave for:

  • The employee’s own serious health condition
  • The birth of the employee’s child or the employee’s domestic partner’s child
  • The placement of a child 16 years old or younger with the employee or the employee’s domestic partner for adoption
  • The serious health condition of the employee’s child, domestic partner’s child, parent, domestic partner, sibling, or spouse
  • The employee’s organ donation
  • The death or serious health condition resulting from the active duty of the employee’s spouse, domestic partner, parent, sibling, or child who was a member of the military.

Maternity Leave

See Sick Leave above.

Paternity Leave

See Sick Leave above.

Parental Leave

See Sick Leave above.

Other Leave

  • Regarding jury service, Maine law states that all employers must provide their full-time employees job-protected but unpaid time off from work to perform their duty as jurors or as a witness in a case, responding to a subpoena: or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.
    In addition to the federal law USERRA, Maine law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the Public Health Service, and any other category of persons designated by the president in a time of war or emergency.
    In addition, in Maine, members of the Maine National Guard are entitled to:
    • Reimbursement of the cost of privately purchased or employer-provided health insurance if the insurance policy was in force before the employee was ordered to perform active state service.
    • Unpaid leave to attend drills, annual muster, or perform active service.
    • unpaid leave up to 10 days to attend Maine National Guard training camp.
    • Three days leave after release from duty, recovery from disease or injury resulting from military duty.
    • 30 days of military leave.
    Employers are required to allow rest periods for employees returning from military leave, based on the time spent on military duty as below:
    Length of Military Service                                                    Length of Rest 
    Three or fewer days of military service                             24 hours
    3-15 days of military service                                               48 hours
    15-30 days of military service                                             72 hours
    30-180 days of military service                                           Two weeks
    180 days or more                                                                  90 days

    There is also Family Military Leave in Maine, which requires employers with 15 or more employees to provide up to 15 days of unpaid leave.

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship, and employment is stipulated “at will.”

This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds. In such cases, the parties negotiate the foundations for a “just cause” termination case-by-case.

Notice Period

In Maine, most employees are employed “at-will,” and either party can terminate the employment relationship without notice. In Maine, pay out of unused vacation time is not required by law.

Still, generally, employers will pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation; there is no official notice period. Still, in general practice, two weeks’ notice is a minimum requirement.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, employers need not make severance payments to terminated employees. Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed by both parties, many employers choose to offer severance payment linked to the employee’s length of service. Most common in Maine is one week pay for every year of service.

Probation Period

No legal provision governs a formal “trial/probation period.” However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/ United States Citizenship and Immigration Services (“USCIS”) for an employment visa on behalf of the prospective employee.

If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).  To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request; the types of visas include:

  • H-1B – for applicants with a college degree hired to do specialised work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialised knowledge.
  • 0 – for people with extraordinary ability in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1 – Highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
  • E-2 – for those with advanced degrees or exceptional ability.
  • E-3 – for skilled workers and professionals, as well as unskilled workers.
  • E-4 – Members of certain immigrant groups.
  • E-5 – Immigrant investors in US companies (substantial investment)

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States. The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorised to work in the United States.

VAT

General

Maine has a minimum flat sales tax rate of 5.50 USD.

Stay up to date on payroll & employment law changes

Version History

February 9, 2022
Minimum wage increase: The State Minimum Wage Law sets the Minimum Wage in Maine at 12.75USD.  There are also other minimum requirements:  Minimum Cash wage (tipped employee): 6.38 USD  Maximum Cash wage (tipped employee): 6.38 USD 
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
The minimum wage: rises to $12.15 per hour.
Employers with 10 or more employees must provide paid leave based on the employee’s base pay. An employee is entitled to earn up to 40 hours in one year of employment, accruing one hour of paid leave from a single employer for every 40 hours worked. Accrual of leave begins at the start of employment, but the employer is not required to permit the use of the leave before the employee has been employed for 120 days.
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Payroll and Benefits Guide in United States – Maine

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Payroll and Benefits Guide
in United States – Maine

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

United States – Maine 2023
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Day Date Holiday Notes
Sunday Jan-1 New Year's Day
Monday Jan-16 Martin Luther King Jr. Day
Monday Feb-20 President's Day
Monday May-29 Memorial Day
Monday Jun-19 Juneteenth Independence Day
Tuesday Jul-4 Independence Day July
Monday Sep-4 Labor Day
Monday Oct-9 Columbus Day
Friday Nov-10 Veterans Day
Thursday Nov-23 Thanksgiving Day
Monday Dec-25 Christmas Day