Maine Paid Family and Medical Leave Insurance

The Maine Paid Family and Medical Leave (FMLI) program is intended to provide employees working in Maine paid time off to care for themselves or a family member.

This tax uses these components.

• Family Leave Insurance employee

• Family Leave Insurance employer

Before you implement Maine FMLI, there are some areas you should consider.

• What is the employee eligibility criteria

• How to override the legislative rates and percentages

• How to opt your organization out of this tax

• How to exclude individual employees

• How to cost the tax

• What wage basis rules it follows

What is the employee eligibility criteria

To be eligible for the Maine FLI tax, an employee must have:

1. Valid Tax Withholding card with a tax reporting unit (TRU) association.

2. Maine identified as their unemployment insurance (SUI) state on their tax card.

How to override legislative rates and percentages

To override the legislative tax rates and percentage distribution between the employee and employer components:

1. To override at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

   To override at the tax reporting unit (TRU) level, start the Legal Reporting Unit Calculation Cards task.

   Settings at the TRU level override those at the PSU level.

2. Open the calculation card for editing.

3. In Component Groups, click Maine.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Select Enterable Calculation Values on Calculation Cards.

6. To change the total tax rate, search for and select FLI Combined Rate.

   To override the distribution between the employee and employer rates, use FLI Employee Percentage and FLI Employer Percentage. Enter the values as percentages. For example, enter 50% as 50. The sum of these percentages must equal 100%.

   To override the annual wage limit for the tax, use Wage Limit.

7. Save your work.

How to opt out your organization

You can opt your organization out of employee and employer components of these taxes.

1. To opt out at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   To opt out at the TRU level, start the Legal Reporting Unit Calculation Cards task.

   Settings at the TRU level override those at the PSU level.

2. Open the calculation card for editing.

3. In Component Groups, click Maine.

4. In Calculation Components, select State FLI.

   Create it if it doesn't exist.

5. Select Enterable Calculation Values on Calculation Cards.

6. Search for and select the appropriate calculation value.

   • FLI Employee Tax Exemption

   • FLI Employer Tax Exemption

7. In Value, select the appropriate exemption status.

How to opt out individual employees

To exclude individual employees from all three components of this tax:

1. Open the person's tax card for editing.

2. Open the Maine component for editing.

3. In Withholding Exemption, select the appropriate exemption for Family Leave.

4. Save your work.

How to cost the FMLI taxes

To process the FMLI taxes, cost these predefined elements using the FLI Tax Calculated or Tax Calculated input values.

• Family Leave Insurance Employee Tax

• Family Leave Insurance Employee Tax Not Taken

• Family Leave Insurance Employer

For further info, see Payroll Costing of Elements for the US in the Help Center.

What wage basis rules it follows

Maine FMLI follows SUI wage basis rules.