05.19.15 |
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What You Need to Know About Maine’s New Income Withholding and Unemployment Tax Filing Process

MaineAt the beginning of the year, the Maine Revenue Services (MRS) and the Maine Department of Labor changed the way companies will need to file their income tax withholding and unemployment taxes.[1]  In the past, businesses could combine their reporting of these two taxes, but businesses now need to file each separately.

According to the MRS, businesses that formerly used Form 941/C1-ME will now need to complete existing Form 941 and new Form ME UC-1 for reporting income tax withholdings and unemployment contributions.  These changes are in effect for all tax periods beginning on or after January 1, 2015, but will not affect any tax periods beginning in 2014.

This new process should not impact the amount a company has to pay for either tax category, but it could initially complicate reporting processes that have been in place for years for many companies.  Separating these two taxes could cause unexpected issues for companies that do not have scalable reporting processes that can easily be adjusted.

For more information about how ADP’s employment tax module can help streamline reporting processes, click here.
Learn More about ADP Employment Tax

The information provided in this blog post is for informational purposes only and not for the purpose of providing accounting, legal, or tax advice.  The information and services ADP provides should not be deemed a substitute for the advice of any such professional.  Such information is by nature subject to revision and may not be the most current information available.

[1] http://www.maine.gov/revenue/publications/alerts/2014/ta_jul14_vol24_iss3.html



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