Maine Paycheck Calculator

Use Alabama Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid.

Maine Payroll Taxes

In addition to Social Security and Medicare, Maine assesses state income tax and state unemployment taxes, as per SUTA.  

State Income Taxes

Maine assesses state income taxes based on a tier system. Tax rates range from 5.8% to 7.15%, depending on income and filing status. Refer to these withholding tables for more information.

SUTA

Maine employers that pay over $1,500 in wages or pay for work performed over 20 weeks or more within a calendar year are liable for SUTA taxes. The current taxable wage base is $12,000.

Maine determines a company’s SUTA tax rate based on a system of 20 different tiers. Contributions go towards the state’s Competitive Skills Scholarship Program (CSSP) and Unemployment Program Administration Fund (UPAF).

Tax rates are determined each year based on contributions paid and any liabilities over the last three years. The state sends out a Notice of Contribution Rate (Form ME Tax-13) annually, which contains a company’s own unique rates. 

New businesses in Maine are assigned a state unemployment tax rate of 2.11%. For more detailed information, head to the state’s Department of Labor website.

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in Maine you’ll need to register for state withholdings with the Revenue Services website. Taxes are due semi-weekly or quarterly, depending on the total withheld. 

You’ll also need to file a completed W-3ME annual reconciliation at the end of every year. To pay your quarterly SUTA taxes, you’ll sign into your account with the Department of Labor. 

Your municipality may also require certain tax registrations, so be sure to check with your local government for requirements.

Using a Payroll Tax Service

In Maine, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.

You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!