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Intuit

How to track the Maine Unemployment surcharge

Learn how to create the Maine Unemployment Program Administrative Fund surcharge in QuickBooks and Intuit Payroll.

Maine has implemented a new Unemployment Surcharge Tax called the Unemployment Program Administrative Fund. This new surcharge is effective beginning 1/1/2021.

How does the surcharge work?

  • The Unemployment Program Administrative Fund surcharge was added to the total employer unemployment experience rate.
  • The extra .13% applies against all employee wages subject to Maine Unemployment taxation.

Add the surcharge to your company

Note: Not sure which payroll service you have? Here's how to find which payroll service you have.

Add the rate in your company tax settings.

  1. Go to Settings ⚙ and select Payroll settings.
  2. (For Core, Premium and Elite) Select Edit ✎ next to Maine tax.
    (For Enhanced) Select State Taxes.
  3. Under ME Unemployment Program Administrative Fund select Change or add a new rate.
  4. In the dropdown choose the rate that applies to your business and an effective date of 1/1/2021.

Before the end of the first quarter of 2021, Intuit will recalculate your Maine Unemployment taxation to make sure it's correct before your return and tax payment are due with the agency.

To collect the surcharge need to first update your payroll.

  1. Download and install the payroll update (22104 or later) released on January 28, 2021.
  2. When you create your next payroll, QuickBooks will prompt you to create the item called New Tax: ME - Unemp. Prog. Admin. Fund. To create the item now, select Employees then Pay Employees.
  3. When prompted, select No, it does not include the rate for ME-Unemp. Prog. Admin. Fund, then select Next.
  4. For the question “Have you already created your own payroll item?” select Yes or No, then select Next.
  5. Select Yes, please set up my employees., then select Next.
  6. Verify the rate is 0.13%, then select Next.
  7. Select Finish to exit the wizard.

If you’ve previously run payroll with Main unemployment, this new tax will recalculate on the next payroll.

Add the rate in your company tax settings.

  1. Go to Taxes & Forms and choose Edit your Tax Setup.
  2. Select State Tax Information.
  3. Under ME Unemployment Program Administrative Fund select Change or add new rate.
  4. In the drop down choose the rate that applies to your business.
  5. Enter an effective date is 1/1/2021.

Before the end of the first quarter of 2021, Intuit will recalculate your Maine unemployment taxation to make sure it’s correct before your return and tax payment are due with the agency.

Contact us to set up your company for the surcharge.

Frequently Asked Questions (FAQ)

How do I exempt an employee from this tax?

Employers can't be exempt from this tax. The surcharge is part of an employer’s overall unemployment rate.

The only employers who are exempt from unemployment and the surcharge are Direct Reimbursable employers.

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