Starting January 1, 2025, Maine launches its Paid Family and Medical Leave (PFML) contributions — though employees won't access benefits until May 1, 2026. This lags between premiums and benefits creates a perfect window for mistakes that can cost your company money.
What Maine PFML Means for Businesses
Timeline & Eligibility
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Payroll deductions begin: January 1, 2025
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Employee leave benefits start: May 1, 2026 HRWorks+4Paychex+4Unum+4Risk Strategies+14Maine+14Maine+14
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PFML covers up to 12 weeks of job-protected leave for reasons like bonding, caring for ill family members, military transitions, or safety after abuse or violence Paychex+4Maine+4Maine+4.
Who Pays — and How Much?
Contribution rates depend on your business's Maine employee count:
| Employer Size | Total Rate | Paid by Employer | Employee Withholding |
|---|---|---|---|
| 15 or more employees | 1.0% | 0.5% | Up to 0.5% |
| Fewer than 15 employees | 0.5% | 0.5% (employer) | Full 0.5% (employee) |
These deductions apply to wages up to the Social Security wage base, and employers must remit them quarterly via the Maine Paid Leave Contributions Portal Devine, Millimet & Branch, P.A.+14Maine+14Verrill+14Verrill+1.
Why Many Employers Are Overpaying — and What to Fix
Without proper setup, many businesses:
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Absorb the full cost, even when they’re only legally required to pay half
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Bundle PFML into general tax lines, hiding it in reporting
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Miss private-plan exemption windows and continue overpaying
These mistakes can add up quickly — and compliance penalties (including retroactive payments and fines) are on the line Fisher PhillipsShelterPoint Blog+6Ogletree+6Paychex+6.
How Baron Payroll Keeps You Compliant — and Saves You Money
With Baron Payroll, you’ll get:
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Accurate deduction and remittance of both employee and employer contributions
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Private plan substitution guidance, if you qualify to opt out of the state plan
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Clean, transparent pay stub line items that clearly label PFML contributions
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Timely alerts and updates on filing deadlines, rate changes, and portal registrations
We do the technical setup — so you can focus on your business, not premium liability.
Quick Reality Check
If your payroll hasn’t clearly separated PFML contributions or your provider never mentioned employee withholding options, chances are you're paying for benefits that employees could fund themselves—in violation of the law.
Next Step — Confirm Your Setup
Want to make sure your Maine PFML is set up correctly?
👉 Use our instant price calculator — no sales call required.
Or visit https://www.baronpayroll.com/itin-service to learn more.
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