Key figures
Maine payroll
2026, with sources
Withholding and unemployment, on one quarterly return
Maine Revenue Services processes both the income tax withholding return (Form 941ME) and the unemployment contributions report (Form ME UC-1) each quarter, due the last day of the month after the quarter; the Department of Labor administers the unemployment side. Withholding is remitted quarterly unless the employer is a semiweekly depositor.
Unemployment contributions are charged on the first $12,000 of each employee’s wages. In 2026 a new employer pays 2.54%: 2.23% for unemployment plus 0.14% for the Competitive Skills Scholarship Fund and 0.17% for the Unemployment Program Administrative Fund, about $305 per employee earning the base.
Paid Family and Medical Leave
Maine’s Paid Family and Medical Leave program has collected premiums since January 2025 and began paying benefits on May 1, 2026. The premium is 1% of wages up to the Social Security wage base, reported and paid quarterly through the Maine Paid Leave Portal. Employers with 15 or more covered employees remit the full 1% and may deduct up to half from employees; those with fewer than 15 remit only the employee half.
A seven-person startup with $700,000 of Maine payroll therefore remits $3,500 a year, all of which it may withhold from employees. At 15 employees, the employer share starts.
Wages and paydays
Maine also requires employers with more than 10 employees to provide earned paid leave; the Bureau of Labor Standards publishes the accrual rules.
- Minimum wage: $15.10 an hour from January 1, 2026; $15.70 from January 1, 2027.
- Paydays: at regular intervals of no more than 16 days, covering wages to within 8 days.
- Final pay: on the next regularly scheduled payday after employment ends.
- Unused vacation is paid out at separation unless the employer has 10 or fewer employees.
Deadlines
- Last day of the month after the quarterQuarterly withholding and unemployment contributionsForm 941ME / ME UC-1
- Last day of the month after the quarterPFML wage report and premiums
The federal baseline
This page covers what Maine adds. The federal rules underneath it apply here too.
Common questions
Do we pay Maine Paid Family and Medical Leave premiums?
Yes. Maine’s Paid Family and Medical Leave premium is 1% of wages up to the Social Security wage base. An employer with 15 or more covered employees remits the full 1% and may deduct up to half from employees; an employer with fewer than 15 remits only the 50% employee share. Premiums and wage reports are due quarterly, and benefits began May 1, 2026.
Can we pay our hourly staff monthly?
No. Maine requires wages to be paid at regular intervals of no more than 16 days, with each payment covering wages earned to within 8 days of payday; family members of the employer and salaried employees are excluded from the rule.
How Maine compares
- No tax on wagesStates with no state income tax on wagesMaine: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programMaine: state paid leave or disability program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesMaine: state-level only. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- RunwayBurn rate and runway: how to calculate them correctlyGross burn, net burn and months of runway, done the way an investor checks them: from cash, averaged, and with the hires you’ve already committed to.
- EquityStock options, 409A valuations and vesting for startupsHow option strike prices are set by a 409A valuation, how vesting and the cliff work, and why ASC 718 makes every grant an expense on your P&L.
More of the Maine guide
- AccountingAccounting and state tax in MaineCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in MaineSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in MainePaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in MaineRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in MaineCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
- 26 M.R.S. § 1043 — Unemployment definitions (taxable wages)
- Maine Department of Labor — 2026 annual rate array
- Maine Paid Family and Medical Leave — Employer’s guide to contributions
- Maine Paid Family and Medical Leave — Employers
- Maine Department of Labor — Minimum wage $15.10 beginning January 1, 2026
- 26 M.R.S. § 621-A — Timely and full payment of wages
- Maine Department of Labor — Labor law FAQ
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.