Tax rate used in calculating Maine state tax for year 2016 | State Abbreviation:
| ME | | State Tax Withholding
State Code: | 23 | | Acceptable Exemption
Form: | W-4 or W-4ME | | Basis For Withholding:
| State Exemptions | | Acceptable Exemption
Data: | S, M, N / Number of Allowances | | TSP Deferred:
| Yes | | Special Coding:
| Determine the Total Number
Of Allowances Claimed field as follows: First
Position - S = Single; M = Married;
Note: Previous Filing status N (Married - Filing Jointly) defaults to S (Single) Second
and Third Positions - Enter the number
of allowances claimed. If less than 10, precede with a zero. | | Additional Information:
| If the W-4 is used, code
it as a state tax document. An employee who had a filing status of Married, Filing Jointly (N) and wants to claim Married (M) must complete a new W-4 with filing status (M). |
Withholding Formula (Maine Effective 2016) - Subtract the nontaxable biweekly Thrift Savings
Plan contribution from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Health
Benefits Plan payment(s) (includes dental and vision insurance program, and flexible spending account - health
care and dependent care deductions) from the amount computed in step
1.
- Add the taxable biweekly fringe benefits (taxable
life insurance, etc.) to the amount computed in step 2 to obtain the
adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by 26
to obtain the annual wages.
- Determine the exemption allowance by applying the
following guideline and subtract this amount from the result of step
4 to determine the taxable income.
Exemption Allowance = $4,050 x Number of Exemptions - A phase out of the taxpayer's Maine standard deduction
starts when annualized income reaches $70,000 for single taxpayers and $140,000
for married taxpayers filing joint returns. To factor in the phase out, complete the
following and add the result to the amounts calculated above:
Single Taxpayers
[(Amount from step 5 - $67,150) / $75,000] * $11,600
Married Taxpayers
[(Amount from step 5 - $137,150) / $150,000] * $23,200
- Apply the taxable income computed in step 6 to the
following table to determine the annual Maine income tax withholding.
| Tax Withholding Table
Single
(Filing Status S) | | If the Amount
of
Taxable Income Is: | The Amount of
Maine
Tax Withholding Should Be: | |
Over:
| But Not
Over: | | | | Of Excess
Over: | | $
0 | $
8,750 | $
0 | plus | 0.0% | $
0 | | 8,750 | 29,800 | 0 | plus | 5.8% | 8,650 | | 29,800 | 46,250 | 1,221 | plus | 6.75% | 29,800 | | 46,250 | and over | 2,331 | plus | 7.15% | 46,250 | | Married
(Filing Status M) | | If the Amount
of
Taxable Income Is: | The Amount of
Maine
Tax Withholding Should Be: | |
Over:
| But Not
Over: | | | | Of Excess
Over: | | $
0 | $
20,350 | $
0 | plus | 0.0% | $
0 | | 20,350 | 62,450 | 0 | plus | 5.8% | 20,350 | | 62,450 | 95,350 | 2,442 | plus | 6.75% | 62,450 | | 95,350 | and over | 4,663 | plus | 7.15% | 95,350 | - Divide the annual Maine income tax withholding determined
in step 6 by 26 and round to the nearest dollar to obtain the biweekly
Maine income tax withholding.
|
in house payroll tax solution for Maine small businesses here.
How to Calculate Maine State Income Tax Withholdings Automatically
How to Create After the Fact Paychecks and Generate the Paystubs
