TAXES 19-06, Maine State Income Tax Withholding

Published: February 13, 2019
Effective: Pay Period 03, 2019

Summary

The income tax withholding formula for the State of Maine includes the following changes:

No action on the part of the employee or the personnel office is necessary.

Tax Formula

State Abbreviation:

ME

State Tax Withholding State Code:

23

Acceptable Exemption Form:

W-4 or W-4ME

Basis for Withholding:

State Exemptions

Acceptable Exemption Data:

S/M, Number of Exemptions

TSP Deferred:

Yes

Special Coding:

Determine the Total Number of Allowances Claimed field as follows:

First Position - S = Single; M = Married

Second and Third Positions - Enter the number of allowances claimed. If less than 10, precede with a 0 (zero).

Additional Information:

None

Withholding Formula (Effective Pay Period 03, 2019)

  1. Subtract the nontaxable biweekly Thrift Savings Plan (TSP) contribution from the gross biweekly wages.
  2. Subtract the nontaxable biweekly Federal Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account - health care and dependent care deductions) from the amount computed in step 1.
  3. Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
  4. Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
  5. Subtract the standard deduction adjustment from the following tables, based on marital status, from the annualized gross pay to get adjusted annualized gross pay:

    Single Taxpayer

    Annualized Gross Pay

    Standard Deduction Adjustment

    Over $0 but not over $81,450

    $9,350

    Over $81,450 but not over $156,450

    [(156,450 - Taxable wages) / $75,000] x $9,350

    Over $156,450

    $0

    Married Taxpayer

    Annualized Gross Pay

    Standard Deduction Adjustment

    Over $0 but not over $162,950

    $21,550

    Over $162,950 but not over $312,950

    [($312,950 - Taxable wages) / $150,000] x $21,550

    Over $312,950

    $0

  6. Determine the exemption allowance by applying the following guideline and subtracting this amount from the results in step 5 to compute the taxable income:

    Exemption Allowance = $4,200 x Number of Exemptions

  7. Apply the taxable income in step 6 to the following table(s) to determine the annual Maine tax withholding:

    Single Tax Withholding Table

    Taxable Wages

    Amount of Tax

    Over $0 but not over $21,850

    5.8%

    Over $21,850 but not over $51,700

    $1,267.00 plus 6.75% of excess over $21,850

    Over $51,700

    $3,282.00 plus 7.15% of excess over $51,700

     

    Married Tax Withholding Table

    Taxable Wages

    Amount of Tax

    Over $0 but not over $43,700

    5.8%

    Over $43,700 but not over $103,400

    $2,535.00 plus 6.75% of excess over $43,700

    Over $103,400

    $6,565.00 plus 7.15% of excess over $103,400

  8. Divide the annual Maine income tax withholding calculated in step 7 by the number of pay dates in the tax year, and round to the nearest dollar to obtain the biweekly Maine income tax withholding.
  9. Add additional amount or percentage elected by the employee to the pay period tax calculated in the above step, and round to the nearest dollar to determine the amount of tax to be withheld for this pay period.

Resources

To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) homepage. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.

Previous Tax Bulletin

Inquiries

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