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Taxes
Maine Payroll Taxes 2026: Complete Overview for Employers
Maine graduated 5.8%–7.15% income tax, SUI on $12,000, and all employer obligations.
Practical, accurate resources for Maine small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Maine graduated 5.8%–7.15% income tax, SUI on $12,000, and all employer obligations.
How to register with Maine Revenue Services and Maine Department of Labor as a new Maine employer.
New employer rate 2.37%, experienced range 0.28%–5.46%, wage base $12,000.
Maine minimum wage is $14.65/hr. Maine’s minimum wage is $14.65/hr, adjusted annually for inflation. Tipped employees may be paid half the minimum wage ($7.33/hr).
At regular intervals not exceeding 16 days pay required. Final pay: Final wages are due on the next regular payday after separation..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Maine-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Maine new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Maine recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Maine small businesses.
Federal OT after 40 hrs/week, Maine overtime rules, exemptions, salary thresholds.