---
title: "Avoid Overpaying Maine PFML: Are You Letting This Slip Through Payroll? | Baron Payroll"
description: 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.
---

[Learning Center - Blog | Baron Payroll ](https://www.baronpayroll.com/blog)

# [Avoid Overpaying Maine PFML: Are You Letting This Slip Through Payroll? | Baron Payroll](https://www.baronpayroll.com/blog/avoid-overpaying-maine-pfml)

 Written by [Baron Payroll](https://www.baronpayroll.com/blog/author/baron-payroll) | Aug 14, 2025 3:26:22 PM

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**

- **Payroll deductions begin:** January 1, 2025
- **Employee leave benefits start:** May 1, 2026 [HRWorks+4Paychex+4Unum+4](https://www.paychex.com/articles/compliance/maine-paid-family-and-medical-leave?utm_source=chatgpt.com)[Risk Strategies+14Maine+14Maine+14](https://www.maine.gov/paidleave/?utm_source=chatgpt.com)
- 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](https://www.maine.gov/paidleave/docs/2024/pfml/languages/englishfaq09122024.pdf?utm_source=chatgpt.com).

## 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+14](https://www.maine.gov/paidleave/?utm_source=chatgpt.com)[Verrill+1](https://www.verrill-law.com/blog/frequently-asked-questions-and-answers-concerning-maines-paid-fmla-law/?utm_source=chatgpt.com).

## Why Many Employers Are Overpaying — and What to Fix

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 Phillips](https://www.fisherphillips.com/en/news-insights/maines-mandatory-paid-leave-premiums-start-january-employers-5-step-action-plan.html?utm_source=chatgpt.com)[ShelterPoint Blog+6Ogletree+6Paychex+6](https://ogletree.com/insights-resources/blog-posts/payroll-deductions-for-maines-paid-family-and-medical-leave-program-will-start-on-january-1-2025/?utm_source=chatgpt.com).

## How Baron Payroll Keeps You Compliant — and Saves You Money

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.

## 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](https://www.baronpayroll.com/instant-price?hsLang=en) — no sales call required.

Or visit [https://www.baronpayroll.com/itin-service](https://www.baronpayroll.com/itin-service?hsLang=en) to learn more.

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- [Why are my W2 Wages Lower Than my Salary?](https://www.baronpayroll.com/blog/why-are-my-w2-wages-lower-than-my-salary?hsLang=en)
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[View full post](https://www.baronpayroll.com/blog/avoid-overpaying-maine-pfml)

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