Code of Maine Rules › 18 - DEPARTMENT OF ADMINISTRATIVE AND FINANCIAL SERVICES › 125 - BUREAU OF REVENUE SERVICES › Chapter 803 - INCOME TAX WITHHOLDING REPORTS AND PAYMENTS › Section 125-803-07 - Reporting

Current through 2024-29, July 17, 2024
A.
Generally.
Every person that
				deducts and withholds Maine income tax under
				36 M.R.S.
				§§5250,
				5250-B,
				5255-B, and
				5255-C must, for each calendar
				quarter, on or before the last day of the month following the close of the
				calendar quarter or such other reporting period as the Assessor may require,
				file a withholding return and remit payments as prescribed by the Assessor. The
				Assessor shall prescribe the voucher required to be filed with the payments.
				Separate withholding accounts must be separately maintained for pass-through
				entity withholding and for employee wage withholding. Separate reporting is
				required using different returns and forms for each withholding type. A
				withholding agent for a person required to remit withholding may remit and
				report withholding on behalf of the person if authorized in writing to do so by
				the person.
B.
Quarterly
				return.
In general, every person required to make a return of income tax
				withheld pursuant to
				36 M.R.S.
				§§5250,
				5255-B, and
				5255-C must make a return for the
				first calendar quarter in which the person is required to deduct and withhold
				such tax and for each subsequent calendar quarter, whether or not income
				subject to withholding is earned or payments subject to withholding are made
				therein, until the person is no longer required to make such returns and has so
				notified the Assessor. The quarterly return must include the name,
				identification number, and amount withheld from each payee subject to
				withholding during the calendar quarter.
C.
Annual reconciliation.
Payers
				who withhold Maine tax during the calendar year must file an annual
				reconciliation (Form W-3ME) on or before February 28 of the following year. The
				annual reconciliation must list the total amount withheld as shown on the payee
				statements and the total amount of withholding reported on the quarterly
				returns filed for the year.
D.
Payee or member information statement.
Pursuant to
				36 M.R.S.
				§5251, payers are required to furnish to
				the payee a copy of the federal Wage and Tax Statement (Form W-2) in the case
				of an employee or the appropriate federal information statement (such as Form
				1099 series) for payments other than wages. In the case of a member of a
				pass-through entity, the information statement is Maine Form 1099ME.
For Maine purposes, a statement must be furnished to a payee
				  on or before the date that the related federal statement must be furnished to
				  the payee. Under
				  36 M.R.S.
				  §5251-A, a person who willfully fails to
				  furnish a statement by the due date, or who willfully furnishes a false or
				  fraudulent statement, commits a civil violation and is subject to a fine of $50
				  for each such failure or each such furnishing.
Copies of Forms W-2 provided to nonresident employees working
				  in Maine must separately identify Maine-source income and Maine withholding in
				  the boxes provided for state information. Public employers who participate in
				  the Maine Public Employees Retirement System (MEPERS) must enter the employee's
				  share of MEPERS contributions in Box 14 of Form W-2 with the designation
				  MEPERS. Employers must maintain sufficient records to identify the Maine-source
				  wages paid to each of their employees during the year and to document the
				  number of days worked by each employee in Maine, even if the employee is exempt
				  from Maine income tax or Maine withholding. In addition to following all
				  federal legal requirements for filing Wage and Income Information Statements
				  (such as Forms W-2, W-2G and 1099), the information filed with the Assessor
				  must include Maine-source income and withholding information.
E.
Filing employee and other payee or
				member information statements.
1.
Generally.
A payer is required to file annual Wage and Tax
				Statements and federal information statements with the Assessor electronically
				in accordance with electronic filing specifications issued by MRS under the
				following circumstances.
(a) An employer or
				payroll processor required to electronically file Forms W-2 with the Social
				Security Administration must report Forms W-2 information to MRS for all
				employees who are Maine residents and for all employees who have Maine-source
				income.
(b) A payer required to
				electronically file with the IRS any type of 1099 form (such as 1099-DIV,
				1099-B, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR or 1099-R) must report
				such form information to MRS for Maine residents and recipients of payments
				sourced to Maine.
(c) A payer who
				is licensed to conduct pari-mutuel wagering pursuant to
				8 M.R.S.
				§§
												271 or
				275-D, or who is licensed to
				operate a slot machine pursuant to 8 M.R.S., chapter 31, subchapter 2, must
				report Form W-2G information to MRS for each payee for whom a statement is
				required to be provided to the payee under federal law or regulation.
(d) Any payer who withheld Maine income tax
				from any payee during the year and did not report the amount of Maine
				withholding for each of those employees or payees on Form 941 ME, Schedule 2
				must report annual payee statement information (Forms W-2 and 1099 series) with
				MRS for all payees who are Maine residents or who received Maine-source
				income.