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.
Timeline & Eligibility
Payroll deductions begin: January 1, 2025
Employee leave benefits start: May 1, 2026 HRWorks+4Paychex+4Unum+4Risk Strategies+14Maine+14Maine+14
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.
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.
Without proper setup, many businesses:
Absorb the full cost, even when they’re only legally required to pay half
Bundle PFML into general tax lines, hiding it in reporting
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.
With Baron Payroll, you’ll get:
Accurate deduction and remittance of both employee and employer contributions
Private plan substitution guidance, if you qualify to opt out of the state plan
Clean, transparent pay stub line items that clearly label PFML contributions
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.
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.
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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