August 2, 2017 Maine 3% income tax surcharge repealed — revised withholding tables are effective immediately Maine Revenue Services has released revised 2017 withholding tables that employers are instructed to begin using immediately. The tables contained in the employer's withholding tax guide have been updated to reflect the recent repeal of the 3% income tax surcharge on individuals with income greater than $200,000. Employers are instructed to discard the 2017 guide with a "12/16" revision date in the lower right corner of the front cover, and instead begin immediately using the tables in the revised guide with a "7/17" revision date. Supplemental withholding rate The supplemental rate of income tax withholding is unchanged at 5%. Budget bill repeals 3% income tax surcharge on high earners approved by voters in November 2016 Maine Governor LePage recently signed into law the biannual budget bill, LD 390 that repeals the 3% income tax surcharge on high earners that was approved by voters in November 2016. As we reported previously, on November 8, 2016, Maine voters narrowly approved the imposition of the 3% personal income tax surcharge on individuals earning over $200,000. The surcharge, which was effective for tax years beginning January 1, 2017, was to be used to fund education. In a letter to the state legislature, Governor LePage urged legislators to consider the consequences of the additional surcharge and included in his FY 2018-2019 budget proposal a reduction in the income tax rate that would mitigate the effect of the surcharge. ———————————————
——————————————— EY Payroll News Flash
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