Maine Paid Family and Medical Leave – Dillner's Accounting Tools

Starting January 1, 2025, any employer with at least one Maine-based employee must begin payroll withholdings for their employees. 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.

You will have to select ME as the Default FamLv State on the Company Payroll Defaults tab and set up a Family Leave Employee payroll item in each company any time before the first paycheck in 2025. The employee rate has been set up by us on the Fam Emp tab in Setup>Payroll Taxes. This is a global setting and if you change this rate you will be changing it for all employees for all clients.

Select Setup>Company Information and select the Company Payroll Defaults tab as shown below.

Select CO from the list as the Default FamLv State.

Go to Setup>Payroll Items and create a Family Leave Employee item as shown below.

If a client has less than 15 employees, you do not have to set up an employer portion of the tax.

To set up the employer portion of the premium for clients with 15 or more employees:

Go to Setup>Payroll Taxes and enter the rate on the Fam Co. tab as shown below.
Go to Setup>Payroll Items and create a new Family Leave Company item as shown below.

Do NOT add these items to the Payroll Templates

If the employer is paying the employee share of the tax for Payroll Check writing:

Set up an Other Income item as shown below to reimburse the employee and add it to the bottom grid of the payroll template(s).

If the employer is paying the employee share of the tax for After-the-Fact Payroll:

Set up an Other Income item as shown below to reimburse the employee and add it to the top grid of the payroll template(s) below the Family Leave Employee item. You will have to enter the amount that should be withheld in both fields.