Maine Department of Labor announces New Training Fund Program
Governor John Baldacci of Maine signed a bill (LD # 1884, PL 2007, c. 352) effective January 1, 2008, which has the following impact on Maine payroll taxes:
- Creates a new tax, the Competitive Skills Scholarship Program (CSSF), for certain employers. 26 M.R.S.A. §1166 and chapter 25, subchapter 5.
- Reduces the employer-paid Unemployment Insurance (UI) contribution rate by 0.05 percent (0.05%), except for employers currently paying the highest unemployment tax rate of 5.40%.
- Employers will be assigned an assessment of 0.05 percent (0.05%) for CSSF, except for reimbursement employers.
- Both UI and CSSF contributions will be calculated on the taxable wage base of $12,000 for 2008.
As a result of these changes, the state has revised the Form 941/C1-ME, Combined Filing for Income Tax Withholding and Unemployment Contributions. The 2008 Form 941/C1-ME will include new lines to report the CSSF rate and contributions.
Frequently Asked Questions
How do I know if I'm affected?
You may be affected if you currently make unemployment insurance contributions in Maine or currently have a valid Maine UC Employer Account Number.
When will the Maine Department of Labor send out the 2008 Rate Notices?
According to the Maine Department of Labor, the 2008 Notice of Contribution Rate will be mailed in December 2007, which will include the employer’s assigned UI and CSSF rates.
When will these changes be available in QuickPayroll?
QuickPayroll Payroll is currently scheduling a payroll update in January 2008. Check the Payroll Alerts Web site for the latest information about payroll updates including Payroll Alerts, which provides any steps that may be required of you to implement a given change.
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