Maine's unemployment insurance tax rate will experience a slight increase this year.
Employers are responsible for paying unemployment taxes on up to $12,000 in wages that are issued to each employee over the course of the calendar year. Each year, the Maine Department of Labor’s statutory schedule contains an array of tax rates, based on an employer’s unemployment-related activity in relation to the overall unemployment system.
According to the state Unemployment Bureau’s Annual Rate Category/Employer Array chart, as of Jan. 1, the unemployment tax rates for experienced employers in assigned Rate Groups 1 to 19 will range from 0.06 percent to 4.22 percent.
A report posted on Bloomberg Tax notes those figures represent a slight increase compared to 2019, when the range was 0.06 percent to 4.16 percent.
Employers that are assigned to Rate Group 20, which must be assessed at a tax rate of at least 5.4 percent, are scheduled to be assessed at a rate of 5.46 percent.
The chart also shows that the New Employer Unemployment Tax Rate is 1.86 percent, plus the CSSF (Competitive Skills Scholarship Fund) Rate of 0.06 percent, creating a Combined Rate of 1.92 percent for 2020.
This represents an increase from 2019, when the Combined Rate was 1.89 percent, the Bloomberg Tax report states.
In a statement posted on the Mainebiz website, Labor Commissioner Laura Fortman said that the state is continuing to see record low unemployment figures, which have been below 3 percent for many months.
In other Labor Department news, changes in state and federal wage and overtime went into effect on Jan. 1, which includes raising the state’s minimum wage from $11 to $12 per hour for most employees, according to a news release posted on the department’s website.
Maine’s minimum salary for exemption from overtime eligibility also will increase from $33,000 to $36,000 annually, or $692.31 per week.