Starting January 1st, 2025, any employer with at least one Maine-based employee must begin payroll withholdings for their employees to support the state’s new Paid Family and Medical Leave program (leave becomes available to employees on May 1, 2026). Employers with 15 or more employees will contribute 1 percent of wages and may deduct up to half of the contribution from the employees’ wages. Employers with less than 15 employees will contribute 0.5 percent of wages and may deduct the entire amount from the employees’ wages. Employers will begin their first quarterly wage reporting and premium payments starting April 1st and due by April 30th, 2025. The Maine Department of Labor has prepared a one-page informational flyer of what employers need to do to prepare for January contributions.
Additionally, the Maine DOL has adopted the final rules for the Paid Family and Medical Leave program, which can be found here.
