Section 125-803-07 - ReportingA.Generally. Every person that deducts and withholds Maine income tax under 36 M.R.S. §§5250, 5250-B, 5255-B, and 5255-C must, for each calendar quarter, on or before the last day of the month following the close of the calendar quarter or such other reporting period as the Assessor may require, file a withholding return and remit payments as prescribed by the Assessor. The Assessor shall prescribe the voucher required to be filed with the payments. Separate withholding accounts must be separately maintained for pass-through entity withholding and for employee wage withholding. Separate reporting is required using different returns and forms for each withholding type. A withholding agent for a person required to remit withholding may remit and report withholding on behalf of the person if authorized in writing to do so by the person.B.Quarterly return. In general, every person required to make a return of income tax withheld pursuant to 36 M.R.S. §§5250, 5255-B, and 5255-C must make a return for the first calendar quarter in which the person is required to deduct and withhold such tax and for each subsequent calendar quarter, whether or not income subject to withholding is earned or payments subject to withholding are made therein, until the person is no longer required to make such returns and has so notified the Assessor. The quarterly return must include the name, identification number, and amount withheld from each payee subject to withholding during the calendar quarter.C.Payee or member information statement. Pursuant to 36 M.R.S. §5251, payers are required to furnish to the payee a copy of the federal Wage and Tax Statement (Form W-2) in the case of an employee or the appropriate federal information statement (such as Form 1099 series) for payments other than wages. In the case of a member of a pass-through entity, the information statement is Maine Form 1099ME. For Maine purposes, a statement must be furnished to a payee on or before the date that the related federal statement must be furnished to the payee. Under 36 M.R.S. §5251-A, a person who willfully fails to furnish a statement by the due date, or who willfully furnishes a false or fraudulent statement, commits a civil violation and is subject to a fine of $50 for each such failure or each such furnishing.
Copies of Forms W-2 provided to nonresident employees working in Maine must separately identify Maine-source income and Maine withholding in the boxes provided for state information. Public employers who participate in the Maine Public Employees Retirement System (MEPERS) must enter the employee's share of MEPERS contributions in Box 14 of Form W-2 with the designation MEPERS. Employers must maintain sufficient records to identify the Maine- source wages paid to each of their employees during the year and to document the number of days worked by each employee in Maine, even if the employee is exempt from Maine income tax or Maine withholding. In addition to following all federal legal requirements for filing Wage and Income Information Statements (such as Forms W-2, W-2G and 1099), the information filed with the Assessor must include Maine-source income and withholding information.
D.Filing employee and other payee or member information statements.1.Generally. A payer is required to file annual Wage and Tax Statements and federal information statements with the Assessor electronically in accordance with electronic filing specifications issued by MRS under the following circumstances.(a) An employer or payroll processor required to electronically file Forms W-2 with the Social Security Administration must report Forms W-2 information to MRS for all employees who are Maine residents and for all employees who have Maine-source income.(b) A payer required to electronically file with the IRS any type of 1099 form (such as 1099-DIV, 1099-B, 1099-G, 1099-INT, 1099-MISC, 1099-OID, 1099-PATR or 1099-R) must report such form information to MRS for Maine residents and recipients of payments sourced to Maine.(c) A payer who is licensed to conduct pari-mutuel wagering pursuant to 8 M.R.S. §§ 271 or 275-D, or who is licensed to operate a slot machine pursuant to 8 M.R.S., chapter 31, subchapter 2, must report Form W-2G information to MRS for each payee for whom a statement is required to be provided to the payee under federal law or regulation.(d) Any payer who withheld Maine income tax from any payee during the year and did not report the amount of Maine withholding for each of those employees or payees on Form 941ME, Schedule 2 must report annual payee statement information (Forms W-2 and 1099 series) with MRS for all payees who are Maine residents or who received Maine-source income.2.Penalty. A person who is required by the Assessor to file a return of information on or after January 31, 2022, in accordance with 36 M.R.S. §5242 and this rule and who fails to do so, or willfully files a false or fraudulent return of information, is subject to a penalty of $50 for each such failure or each such filing.E.More frequent reporting. The Assessor may require more frequent reporting if the Assessor believes that the collection of withheld taxes is in jeopardy or if the Assessor determines that any person required to deduct and withhold Maine income tax has failed to collect, truthfully account for, or pay over such tax or has failed to file returns in a timely manner.F.Adjustment of overpayments1.Within a reporting period. If a payer deducts and withholds more than the correct amount of tax required by 36 M.R.S., chapter 827 from a payee but repays the amount of the overcollection to the payee before the return for the period is filed with the Assessor and obtains a written receipt from the payee, the employer or other payer need not report on the return, or pay to the Assessor, the amount of the overcollection. Any overcollection not repaid to and receipted in writing by the payee must be reported and paid to the Assessor with the return for the return period in which the overcollection was made.2.Within a calendar year. If, in any return period in a calendar year, a payer deducts and withholds more than the correct amount of tax required by 36 M.R.S., chapter 827 from a payee and the amount of such overcollection is paid to the Assessor, the payer may reimburse the payee in any subsequent return period within the calendar year. If the amount of the overcollection is repaid to the payee, the payer must retain a written receipt showing the date and amount of the repayment. The payer may then file an amended return with the Assessor for the period in which the overcollection was made, reporting the correct amount of withholding for the period. The amended return must contain such information as is required by the instructions relating to the form. If the payer does not repay the amount of the overcollection, the payer may, within the same calendar year of the overcollection, reduce the Maine withholding amount otherwise required for that calendar year by the amount of the overcollection. In this case, no amended return is required. For information regarding claiming a refund of an overpayment of withheld income taxes, see Section .09(E), below.18-125 C.M.R. ch. 803, § 07