©2023 OnPay, Inc.
Insurance offered through OnPay Insurance Agency, LLC (CA License #0L29422)
Updated: January 6, 2023
As the most eastern state in the country, Maine is where the sun shines first every morning. In an ironic twist, Maine is also where Stephen King, AKA The King of Horror, writes his novels, in which his fictional characters often don’t get to see the morning sun. As a small business owner in Maine, you have your own horror to deal with. Whether you cook up yummy clam chowder in Portland or serve up tasty cocktails in Augusta, payroll taxes can often seem like a bad dream.
We want to take the horror out of your payroll tax duties, so we’ve designed a nifty payroll calculator that can figure out all of the federal and Maine state payroll taxes for you and your employees. All you have to do is input wage and W-4 information for each employee into the calculator and let it do the rest of the work.
First of all, for Uncle Sam’s sake, let’s calculate federal payroll taxes. Here’s a quick rundown of the components that go into federal tax withholdings. For a more detailed explanation of all of the steps below, head on over to our comprehensive step-by-step guide.
Now that we’re done with federal taxes, let’s look at Maine’s state income taxes. Maine charges a progressive income tax, broken down into three tax brackets. The tax rates range from 5.8% on the low end to 7.15% on the high end.
Maine does not have any local city taxes, so all of your employees will pay only the state income tax.
As an employer in Maine, you have to pay unemployment insurance to the state. The rate ranges from .0% to 5.4% on the first $12,000 in wages paid to each employee in a calendar year.
If you’re a new employer (congratulations!), you pay a flat rate of 2.45%.
There you have it. Nightmare over. You’ve checked it off your to-do list so you can move onto the important things. Once each employee’s net pay is calculated (after taking deductions and withholdings into consideration), you’re in the clear.
All you have to worry about is getting your employees paid on time as well as setting aside whatever you owe in FICA and unemployment taxes. Those numbers can add up quickly!
You will need to use Form 941 to file federal taxes quarterly, and Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. More information about employment tax due dates can be found here.
If you would like to learn more, here are some helpful links that can help you become a payroll whiz!
Maine Department of Labor (207) 623-7900 | Unemployment Tax Information | Employers FAQs | Register a New Business
Maine Revenue Services (207) 626-8475 | Employer Withholdings | Withholding FAQs
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.