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Payroll and Benefits Guide United States – Maine

Last updated: Mar 03, 2026

Currency
United States Dollar (USD)
Employer Taxes
10.94% – 22.09%
Payroll Frequency
Semi Monthly
Employee Costs
8.55%
Capital
Augusta
Date Format
mm/dd/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Payroll Contributions
0.28% –6.03% State Unemployment Insurance (SUI), applied on the first 12,000 USD of each employee’s wages.Rates are determined based on the employer’s experience rating and the applicable tax schedule.
2.41% State Unemployment Insurance – New Employer, applied on the first 12,000 USD of each employee’s wages.

The rate is combined with 2.11% base rate, 0.14% for the Competitive Skills Scholarship Fund and 0.16% for the Unemployment Program Administration Fund.

6.20% Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year.
1.45% Federal Insurance Contributions Act (FICA)  – Medicare. An additional 0.9% should be withheld from employees earning above 200,000 USD per year.
0.60% – 6.00% Federal Unemployment Tax Act (FUTA), applied on salary up to 7,000 USD per year.Employers who pay their state unemployment tax in full and on time are eligible for a 5.4% tax credit, reducing the FUTA rate to 0.6%.
10.94% – 22.09% Total Employment Cost

 

Employee Payroll Contributions
6.20% Federal Insurance Contributions Act (FICA) - Social Security, applied on salary up to 176,100 USD per year.
1.45% Federal Insurance Contributions Act (FICA)  – Medicare.An additional 0.9% should be withheld from employees earning above 200,000 USD per year.
7.65% – 8.55%    Total Employee Cost
State Employee Income Tax
State Tax – Single 
5.80% 0 – 26,800 USD
6.75% 26,800 – 63,450 USD
7.15% Above 63,450 USD
State Tax – Married – Joint Filing
5.80% 0 – 53,600 USD
6.75% 53,600 – 126,900 USD
7.15% Above 126,900 USD
State Tax – Head of Household
5.80% 0 – 39,050 USD
6.75% 39,050 – 92,450 USD
7.15% Above 92,450 USD
Standard Deduction & Personal Exemption
Single 15,000USD
Married – Joint Filing 30,000 USD
Personal exemption
Taxpayer and spouse (if married) 4,700 USD
Federal Employee Income Tax Annual
Federal Tax – Singles
10.00% Up to 11,925 USD
12.00% 11,925 – 48,475 USD
22.00% 448,475 – 103,350 USD
24.00% 103,350 – 197,300 USD
32.00% 197,300 – 250,525 USD
35.00% 250,525 – 626,350 USD
37.00% Above 626,350 USD
Federal Tax – Married – Joint Filing
0.00% Up to 23,850 USD
12.00% 23,850 – 96,950 USD
22.00% 96,950 – 206,700 USD
24.00% 206,700 – 394,600 USD
32.00% 394,600 – 501,050 USD
35.00% 501,050 – 751,600 USD
37.00% Above 751,600 USD
Federal Tax – Heads of Household
10.00% Up to 17,000 USD
12.00% 17,000 – 64,850 USD
22.00% 64,850 – 103,350 USD
24.00% 103,350 – 197,300 USD
32.00% 197,300 – 250,500 USD
35.00% 250,500 – 626,350 USD
37.00% Above 626,350 USD
Standard Deduction and Personal Exemption
15,000 USD Single
30,000 USD Married Filing Jointly
22,500 USD Head of Household

Employer taxes

Highest
Lowest

Employee taxes

Highest
Lowest

Minimum Wage

General

The State Minimum Wage Law sets the Minimum Wage in Maine at $14.65 per hour.

The Federal minimum wage rate is 7.25 USD per hour.

Payroll

Payroll Cycle

In general, employees in Maine are paid semi-monthly, with payments made twice a month on set dates as stipulated in the contract.

The payment cannot exceed a 16-day gap.

13th Salary

There is no legislation for 13th-month payments in Maine.

Working Hours

General

In Maine, the working week is a maximum of 40 hours per week, 8 hours per day.

Overtime

Maine adheres to the Fair Labor Standards Act (FLSA), and work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay.

If employees are scheduled to work on weekends or rest days, no additional payment is required.

However, should an employer request an employee to work in exceptional circumstances on these days, then overtime is paid at the rate of 150% of the regular pay.

Leave

Annual Leave (vacation)

Maine does not have any state statute governing the amount and payment of vacation time; however, it is common for employers to decide whether to offer paid or unpaid vacation leave.

This must comply with employment law and must be stipulated in the collective bargaining agreements.

Public Holidays

Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.

Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.

Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.

Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
19 January 2026 Monday Martin Luther King, Jr. Day Standard holiday
16 February 2026 Monday Washington’s Birthday (also observed as President’s Day) Standard holiday
20 April 2026 Monday Patriot’s Day Standard holiday
25 May 2026 Monday Memorial Day Standard holiday
19 June 2026 Friday Juneteenth Standard holiday
3 July 2026 Friday Independence Day (Observed – actual date is July 4, a Saturday)
7 September 2026 Monday Labor Day Standard holiday
12 October 2026 Monday Indigenous Peoples’ Day Standard holiday
11 November 2026 Wednesday Veterans Day Standard holiday
26 November 2026 Thursday Thanksgiving Day Standard holiday
27 November 2026 Friday Thanksgiving Friday (Day after Thanksgiving) Standard holiday
25 December 2026 Friday Christmas Day Standard holiday

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

FMLA eligible employees are entitled to:

  • 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • Care for the employee’s spouse, child, or parent who has a severe health condition.
  • Leave in the event of a serious health condition that makes the employee unable to perform the essential functions of their job.
  • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

Or

  • 26 working weeks of leave during a single one-year period to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

In Maine, for employees with 120 days of service, employers must provide one hour of paid leave for every 40 hours worked, up to a maximum of 40 hours of paid sick leave a year.

In addition, there is the Maine Family Medical Leave Requirements Act (MFMLRA) which requires employers (with 15 or more employees and employees with at least 12 months of service) to provide their employees with ten weeks of unpaid family medical leave in a period of any two years.

Employees must give adequate notice before the leave dates (at least 30 days), and the employee may use the leave for:

  • The employee’s own serious health condition
  • The birth of the employee’s child or the employee’s domestic partner’s child
  • The placement of a child 16 years old or younger with the employee or the employee’s domestic partner for adoption
  • The serious health condition of the employee’s child, domestic partner’s child, parent, domestic partner, sibling, or spouse
  • The employee’s organ donation
  • The death or serious health condition resulting from the active duty of the employee’s spouse, domestic partner, parent, sibling, or child who was a member of the military.

Maternity Leave

See Sick Leave above.

Paternity Leave

See Sick Leave above.

Parental Leave

See Sick Leave above.

Other Leave

  • Regarding jury service, Maine law states that all employers must provide their full-time employees job-protected but unpaid time off from work to perform their duty as jurors or as a witness in a case, responding to a subpoena: or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.
    In addition to the federal law USERRA, Maine law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the Public Health Service, and any other category of persons designated by the president in a time of war or emergency.
    In addition, in Maine, members of the Maine National Guard are entitled to:
    • Reimbursement of the cost of privately purchased or employer-provided health insurance if the insurance policy was in force before the employee was ordered to perform active state service.
    • Unpaid leave to attend drills, annual muster, or perform active service.
    • unpaid leave up to 10 days to attend Maine National Guard training camp.
    • Three days leave after release from duty, recovery from disease or injury resulting from military duty.
    • 30 days of military leave.
    Employers are required to allow rest periods for employees returning from military leave, based on the time spent on military duty as below:
    Length of Military Service                                                    Length of Rest 
    Three or fewer days of military service                             24 hours
    3-15 days of military service                                               48 hours
    15-30 days of military service                                             72 hours
    30-180 days of military service                                           Two weeks
    180 days or more                                                                  90 days

    There is also Family Military Leave in Maine, which requires employers with 15 or more employees to provide up to 15 days of unpaid leave.

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship, and employment is stipulated “at will.”

This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds.

In such cases, the parties negotiate the foundations for a “just cause” termination case-by-case.

Salary payment interval / date Final payment on termination Bank account/payment-method requirement
Wages must be paid at regular intervals not to exceed 16 days. Each payment must include all wages earned up to within 8 days of the pay date. When employment ends (whether by discharge or resignation): All earned wages are due on the next regularly scheduled payday or within two weeks of written demand, whichever is sooner. Wages may be paid by cash, check, direct deposit (or other electronic methods) provided the employee can access the full amount without cost. Direct deposit fees cannot be charged to the employee.

Notice Period

In Maine, most employees are employed “at-will,” and either party can terminate the employment relationship without notice.

Private employers who have 11 or more employees are required to pay employees for any unused annual leave.

Still, in general practice, two weeks’ notice is a minimum requirement.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, employers need not make severance payments to terminated employees.

Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed by both parties, many employers choose to offer severance payment linked to the employee’s length of service.

Most common in Maine is one week pay for every year of service.

Probation Period

No legal provision governs a formal “trial/probation period.”

However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

Minimal Statutory Termination Costs 

Some states require PTO balances to be paid out during termination, also any bonuses or commissions that were promised in the employment contract

Immigration

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States.

An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/United States Citizenship and Immigration Services (USCIS) for an employment visa on behalf of the prospective employee.

If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).

To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request. The types of visas include:

  • H-1B – for applicants with a college degree hired to do specialized work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialized knowledge.
  • 0 – for people with extraordinary ability in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1 – highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
  • E-2 – for those with advanced degrees or exceptional ability.
  • E-3 – for skilled workers and professionals, as well as unskilled workers.
  • E-4 – members of certain immigrant groups.
  • E-5 – immigrant investors in US companies (substantial investment).

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States. The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorized to work in the United States.

VAT

General

Maine has a State sales tax of 5.5%. There are no additional Local state taxes.

Stay up to date on payroll & employment law changes

Version History

April 4, 2024
Minimum wage has been increased.
February 9, 2022
Minimum wage increase: The State Minimum Wage Law sets the Minimum Wage in Maine at 12.75USD.  There are also other minimum requirements:  Minimum Cash wage (tipped employee): 6.38 USD  Maximum Cash wage (tipped employee): 6.38 USD 
Payroll contributions and personal income tax rates have been updated.
January 1, 2021
The minimum wage: rises to $12.15 per hour.
Employers with 10 or more employees must provide paid leave based on the employee’s base pay. An employee is entitled to earn up to 40 hours in one year of employment, accruing one hour of paid leave from a single employer for every 40 hours worked. Accrual of leave begins at the start of employment, but the employer is not required to permit the use of the leave before the employee has been employed for 120 days.
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Payroll and Benefits Guide in United States – Maine

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Payroll and Benefits Guide
in United States – Maine

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  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

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Public Holidays Calendar

United States – Maine
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Date Day Holiday Notes
1 January 2026 Thursday New Year’s Day Standard holiday
19 January 2026 Monday Martin Luther King, Jr. Day Standard holiday
16 February 2026 Monday Washington’s Birthday (also observed as President’s Day) Standard holiday
20 April 2026 Monday Patriot’s Day Standard holiday
25 May 2026 Monday Memorial Day Standard holiday
19 June 2026 Friday Juneteenth Standard holiday
3 July 2026 Friday Independence Day (Observed – actual date is July 4, a Saturday)
7 September 2026 Monday Labor Day Standard holiday
12 October 2026 Monday Indigenous Peoples’ Day Standard holiday
11 November 2026 Wednesday Veterans Day Standard holiday
26 November 2026 Thursday Thanksgiving Day Standard holiday
27 November 2026 Friday Thanksgiving Friday (Day after Thanksgiving) Standard holiday
25 December 2026 Friday Christmas Day Standard holiday