21 December 2017 Maine 2018 withholding tables released — calendar year 2017 Forms W-2 due January 31, 2018, annual reconciliation due February 28, 2018 Maine Revenue Services (MRS) has released the 2018 Maine employer withholding tax guide, including the percentage method and wage-bracket tables. (2018 Withholding tables for individual income tax, Maine Revenue Services, November 2017.) The calendar year 2017 Forms W-2 are due to the MRS by January 31, 2018, accelerating the deadline from the previous February 28. The deadline for electronically filing the 2017 Maine Form W-3ME, Reconciliation of Maine Income Tax Withheld in 2017, remains at February 28, 2018. If supplemental wages (such as bonuses, commissions, overtime pay, etc.) are paid with regular wages, the withholding tax is calculated as if the total were a single payment of wages for the regular payroll period. If the supplemental wages are paid separately, the payer may withhold a flat 5.0%. (2018 Withholding tables for individual income tax, page 4.) As we reported previously, the biannual budget bill for fiscal years 2018 and 2019 (LD390) repealed the 3% income tax surcharge on high earners that was approved by voters in November 2016. As a result, the MRS issued revised 2017 withholding tables in July 2017. All employers and non-wage payers registered for Maine income tax withholding and unemployment compensation accounts must electronically file Maine quarterly withholding and unemployment compensation tax returns and annual reconciliation of Maine income tax withholding. Waivers from this requirement are available if the requirement causes undue hardship. See MRS Rule 104 and page 5 of the withholding booklet for details. File specifications for 2018 are now available for filing withholding returns and unemployment tax and wage reports on the MRS website. Taxpayers that have a combined tax liability for all Maine taxes of $10,000 or more during the lookback period ending in 2017 must remit all Maine tax payments electronically. Thus, in addition to other entities affected by the requirement, employers and non-wage payers required to remit on a semiweekly basis must do so electronically. See MRS Rule 102 and pages 2 and 5 of the withholding booklet for details. As we previously reported, the deadline for filing Forms W-2 for calendar year 2017 is accelerated to January 31, 2018. Employers of 250 or more employees must file Forms W-2 electronically with the MRS. EFW2 files must be submitted electronically via the Maine Employers Electronic Reporting System (MEETRS) on the MRS website. Employers of less than 250 employees should report the amount of Maine withholding for each employee or payee on Form 941ME, Schedule 2 for each quarter. If this is done, small employers are required to electronically file only Form W-3ME (no need to file Forms W-2). However, if a small employer did not report the amount of Maine withholding for each employee or payee on its quarterly return for each quarter, the employer must submit Forms W-2 electronically. The MRS does not accept paper copies of Forms W-2 and 1099. The 2017 Form W-3ME, Reconciliation of Maine Income Tax Withheld must be filed electronically by February 28, 2018. For the 2017 Forms W-2 and W-3ME specifications, go to the Revenue Services website. Questions concerning the 2018 withholding tables, 2017 annual filing specifications, or 2018 quarterly return filing specifications may be sent to withholding.tax@maine.gov. Document ID: 2017-2176 |
