Maine Paid Family and Medical Leave for Employers: 1.0% Premium, the 15-Employee Rule and Benefits Since May 1, 2026
Maine Paid Family and Medical Leave for Employers: 1.0% Premium, the 15-Employee Rule and Benefits Since May 1, 2026
If you have employees in Maine, the state's paid family and medical leave program applies to you. Participation is not optional for employers. The program is funded by a payroll premium, and benefits began for leave starting on or after May 1, 2026. This guide covers what you pay, how the 15-employee threshold changes your share, what employees can claim, and what to confirm with the state before your next payroll run.
What the Maine paid family and medical leave program requires
The Maine paid family and medical leave program gives eligible workers paid, partially replaced time away from work to care for a new child, a family member, or their own serious health condition. Benefits come from a state fund supported by premiums that employers and some self-employed people pay. Your job as an employer is to calculate and remit the premium correctly, deduct any employee share within the legal limits, and point your workers to the claim process.
How the premium works
The combined premium may not exceed 1.0% of wages. That ceiling has applied since January 1, 2025 under 26 MRSA 850-F(3). The premium is remitted quarterly on wages up to the Social Security wage base, so wages above that base are not subject to the premium. The rate the state is charging for the current period should be confirmed with the Maine Department of Labor before you set up withholding, and the current Social Security wage base should be confirmed with the Social Security Administration.
Your remittance obligation depends on how many employees you have. The table below shows the difference.
| Item | Employers with 15 or more employees | Employers with fewer than 15 employees |
|---|---|---|
| Premium remitted to the state | 100% of the premium | Only half of the premium |
| Employee share | May deduct up to half of the premium from wages | May deduct up to half of the premium from wages |
In practical terms, an employer with 15 or more employees carries the full remittance cost but may pass up to half of the premium to workers through payroll deductions. An employer with fewer than 15 employees remits only half of the premium. Count employees carefully before you rely on the 15-employee line, and confirm with the Department of Labor how it counts part-time and seasonal staff.
Here is a simple illustration using the 1.0% ceiling. A worker earning $40,000 a year, with all wages below the Social Security wage base, generates a premium of $400 a year at the ceiling, or about $100 a quarter. Your actual cost will depend on the rate the state sets for the period and on the employee share you choose to deduct.
Who is covered and what the benefits look like
Benefits are available to covered individuals who earned at least 6 times the state average weekly wage in their base period. The main terms are summarized below.
| Feature | Rule |
|---|---|
| Leave available | Up to 12 weeks of family leave and up to 12 weeks of medical leave, with no more than 12 weeks combined in a benefit year |
| Earnings eligibility | At least 6 times the state average weekly wage in the base period |
| Wage replacement | 90% of the weekly wage up to half the state average weekly wage, plus 66% of the weekly wage above that, capped at the state average weekly wage |
| Claim filing window | Up to 60 days before leave starts, or up to 90 days after it starts |
The wage replacement formula means lower earners receive a higher share of their weekly pay, while the total weekly benefit never exceeds the state average weekly wage. Confirm the current state average weekly wage with the Department of Labor, since it changes over time.
Claims are administered by Aflac. Point employees to the program's claim process rather than trying to handle claims yourself, and make sure they know the filing window so they do not miss it.
When benefits started
Benefits began for leave starting on or after May 1, 2026. The Maine Department of Labor announced the start date on January 20, 2026. Leave that began before May 1, 2026 falls outside the program's benefit period, so do not tell employees that an earlier absence is payable under it.
Private plans and self-employed owners
An employer with an approved private plan does not remit to the state fund. A private plan is a legitimate alternative, but it requires state approval and must meet the program's requirements. Confirm the approval steps with the Department of Labor before you stop remitting to the state, because an unapproved plan leaves you exposed to the failure-to-contribute rule described below.
Self-employed people may elect coverage for themselves. An electing owner may pay up to half of the premium. If you run a sole proprietorship or a single-member LLC without employees, decide whether to elect coverage based on your own income, your personal risk, and the benefit terms above.
What happens if you do not contribute
An employer that fails to contribute owes 1.0% of its annual payroll plus the benefits paid. That means missing remittances turns an ordinary payroll cost into a liability that grows with the benefits paid to your employees. If you are unsure whether you are required to contribute, or whether your headcount has crossed 15, resolve the question before the next quarterly remittance.
Entity filings are separate from this payroll premium
Forming an LLC or corporation does not register you for paid leave, and the program is not part of the Secretary of State's filing process. The Secretary of State handles entity filings. The LLC Certificate of Formation (Form MLLC-6) carries a $175 filing fee, and the LLC Annual Report (Form MLLC-13) carries an $85 fee and is due June 1 each year. The paid leave premium is a separate payroll obligation that applies to employers based on headcount, not on entity type. Budget for both.
Employer checklist
- Count your employees to determine whether you have 15 or more.
- Confirm the current premium rate and the Social Security wage base with the appropriate agencies.
- Set up payroll deductions for up to half of the premium if you choose to share the cost with employees.
- Remit the premium quarterly on wages up to the Social Security wage base.
- Decide whether to remain with the state fund or seek approval for a private plan, and confirm the approval steps before you change anything.
- Tell employees how the benefits work, including the 60-day and 90-day claim filing window, and direct them to Aflac for claims.
- Keep payroll records that show wages, deductions, and remittance dates for each quarter.
Questions to confirm with the state
Several figures in this area change over time, so do not rely on a number from an article, including this one, without checking the source. Confirm the following with the Maine Department of Labor, which administers the program, or find the program page through maine.gov:
- The current premium rate for the period you are paying
- The current state average weekly wage used to calculate benefits
- The remittance forms, payment method, and quarterly due dates
- How the state counts employees for the 15-employee threshold
- The approval requirements and deadlines for a private plan
Official and support resources
- Maine Secretary of State, Division of Corporations, UCC and Commissions: https://www.maine.gov/sos/corporations-commissions
- Maine Revenue Services: https://www.maine.gov/revenue/
- Maine Small Business Development Centers: https://www.mainesbdc.org/
- U.S. Small Business Administration, Maine district: https://www.sba.gov/district/maine
The Maine SBDC network offers free advising for employers who are working through payroll setup and compliance questions, and it is a practical first call if you are new to having employees.
Important notice
This guide is informational content. It is not legal, tax, or payroll advice, and it does not create an attorney-client or accountant-client relationship. Premium rates, wage thresholds, and program rules can change. Confirm current figures with the Maine Department of Labor and the Social Security Administration before you act. Consult a qualified attorney or certified public accountant before making decisions about private plans, seasonal or multi-state staff, or any situation where your payroll obligations are unclear.