Background

Maine’s Paid Family and Medical Leave (PFML) program allows eligible employees to take up to 12 weeks of paid leave annually for family or medical reasons. Payroll contributions for this program will commence on January 1, 2025, and employees can start accessing benefits on May 1, 2026. This law applies to all employers with at least one employee in Maine.

Starting January 2025, employers must register for PFML by submitting their business details on Maine's official website.

Maine Paid Family Medical Leave is handled using the PFML - ME Employer Expense and the user created Employee deduction

For 2025 - 2027, the combined contribution rate will be either 0.5% or 1% of wages, depending on the employer's size. Please refer to the state’s documentation to identify the employees you paid during the lookback period from October 1, 2023, to September 30, 2024.

Contribution Rates

Employers with Less than 15 Employees:

• Total Contribution: 0.5% of employee wages.
• Employer’s Share: None required.
• Employee’s Share: Up to 0.5% of wages, which the employer may deduct from the employee’s paycheck.

Employers with 15 or More Employees:

• Total Contribution: 1% of employee wages.
• Employer’s Share: 0.5% of wages.
• Employee’s Share: Up to 0.5% of wages, which the employer may deduct from the employee’s paycheck.

AccountEdge Setup

Set Up Maine PFML Employer Expense

Go to Payroll > Payroll Categories > Expenses

• If the PFML - ME Employer Expense already exists, click Edit, otherwise, click New to create a new employer Expense.  Provide a name, ie, PFML - ME, select type PFML, and enter ME for the State Code.
• The 2025 Wage Limit is $176,100.00.
• Enter the appropriate PFML Rate based on the number of employees you have.  (0.0% if you have less than 15 employees or 0.5% if you have 15 or more Employees).
• Click the Employee button to add PFML - ME to all Maine Employees.

Set Up Maine PFML Employee Deduction

Go to Payroll > Payroll Categories > Deductions

• Select the PFML - ME Employee Deduction and click Edit.   If the PFML - ME Employee Deduction does NOT exist, click new, and enter the name PFML - ME - Employee.
• Type:  PFML-Paid Family Medical Leave
• State: ME
• Type of Deduction:  Select the second radio and enter the 2025 rate of 0.5% and select Percent of Gross Wages.
• Deduction Limit:  Select the third radio and enter the 2025 annual limit $880.50 and select Dollars per Year.
• Click the Employee button to add PFML - ME to all Maine Employees.