State Updates

Maine Paid Family and Medical Leave (PFML) Payroll Deduction of Employees’ Contribution Begins in January 2025

 

December 17, 2024

Starting with the first payroll with a pay date in January, any employer with at least one Maine-based employee has obligations under Maine’s new Paid Family and Medical Leave law to withhold their Maine employees’ share of premium contributions through payroll. Employers may withhold up to 0.5% of their Maine-based employees’ wages in 2025.

Employers with at least one employee working in Maine (“covered employers”) should ensure that their payroll systems and their payroll vendors are set up properly to begin withholding accurately and timely. Further, covered employers should inform their Maine employees in advance regarding the Maine PFML program and that the payroll withholding will begin. The Maine Department of Labor has published a poster that covered employers can use to provide the information. The first contributions and wage reports for the January to March 2025 quarter must be submitted through the state’s Paid Leave Portal site no later than April 30, 2025.

Employers should review their employees’ primary work states to determine whether they are subject to Maine PFML. If they determine that they are covered employers, they should take immediate actions to prepare by following the steps on this one-pager: WhatEmployersNeedtoKnowJanuary2025.pdf.

Employers should also review Maine's PFML’s site and related resources posted. For further information on Maine PFML, please download a copy of the PPI publication Quick Reference Chart: Statutory Disability & Paid Family and Medical Leave Programs.

PPI Benefit Solutions does not provide legal or tax advice. Compliance, regulatory and related content is for general informational purposes and is not guaranteed to be accurate or complete. You should consult an attorney or tax professional regarding the application or potential implications of laws, regulations or policies to your specific circumstances.

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