Maine Revised Statutes Title 26 Sec. 850-F – Premiums
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1. Authorized. Payroll premiums must be paid in order to finance the payment of family leave benefits and medical leave benefits under this subchapter and administration of the program.
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
Terms Used In Maine Revised Statutes Title 26 Sec. 850-F
- Administrator: means the department administering the program or an authorized 3rd party conducting any functions necessary to implement and operate the program. See Maine Revised Statutes Title 26 Sec. 850-A
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Commissioner: means the Commissioner of Labor. See Maine Revised Statutes Title 26 Sec. 850-A
- Contributions: means the payments remitted by an employer or self-employed individual to the fund, as required by this subchapter. See Maine Revised Statutes Title 26 Sec. 850-A
- Department: means the Department of Labor. See Maine Revised Statutes Title 26 Sec. 850-A
- Employee: means a person who may be permitted, required or directed by an employer in consideration of direct or indirect gain or profit to engage in any employment in the State but does not include an independent contractor. See Maine Revised Statutes Title 26 Sec. 850-A
- Employer: means :
A. See Maine Revised Statutes Title 26 Sec. 850-AFamily leave: means leave taken pursuant to section 850?B, subsection 2. See Maine Revised Statutes Title 26 Sec. 850-A Family leave benefits: means wage replacement paid pursuant to sections 850?B and 850?C to a covered individual while the covered individual is on family leave. See Maine Revised Statutes Title 26 Sec. 850-A Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006. Fund: means the Paid Family and Medical Leave Insurance Fund established under section 850?E. See Maine Revised Statutes Title 26 Sec. 850-A Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases. Medical leave: means leave taken pursuant to section 850?B, subsection 3. See Maine Revised Statutes Title 26 Sec. 850-A Medical leave benefits: means wage replacement paid pursuant to sections 850?B and 850?C to a covered individual while the covered individual is on medical leave. See Maine Revised Statutes Title 26 Sec. 850-A Program: means the paid family and medical leave benefits program established in section 850?B. See Maine Revised Statutes Title 26 Sec. 850-A Self-employed individual: means an independent contractor as described in section 1043, subsection 11, paragraph E, a sole proprietor, a member of a limited liability company or limited liability partnership or an individual whose net profit or loss from a business must be reported to the Department of Administrative and Financial Services, Bureau of Revenue Services and who resides in the State. See Maine Revised Statutes Title 26 Sec. 850-A United States: includes territories and the District of Columbia. See Maine Revised Statutes Title 1 Sec. 72 Wages: includes , but is not limited to, salary, wages, tips, commissions and other compensation as determined by rule. See Maine Revised Statutes Title 26 Sec. 850-A Year: means a calendar year, unless otherwise expressed. See Maine Revised Statutes Title 1 Sec. 72
2. Employer to remit employer contribution reports and premiums. Beginning January 1, 2025, for each employee, an employer shall remit employer contribution reports and premiums in the form and manner determined by the administrator. Employer contribution reports and premiums must be remitted quarterly.
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
3. Premium amount. The following provisions govern the premium amount.
A. Beginning January 1, 2025, the premium amount may not be more than a combined rate of 1.0% of wages. [PL 2023, c. 412, Pt. AAA, §7 (NEW).]
B. Annually, for the 2028 calendar year and each calendar year thereafter, not later than October 1st, the department shall set the premium for the coming calendar year based on a percentage of employee wages and at the rate necessary to obtain a total amount of premium contributions in order to maintain the solvency of the fund at a level of at least the annualized amount described in section 850?E, subsection 3, plus an amount equal to 100% of the cost of administration of the payment of those benefits during the previous fiscal year, less the amount of net assets remaining in the fund as of June 30th of the current calendar year. If, for the 2028 calendar year or any calendar year thereafter, the premium rate adjustment pursuant to this subsection is an increase and results in the difference between the rate of the upcoming calendar year and the current calendar year equaling more than 0.1% of wages paid, the department shall submit a report regarding fund solvency and factors contributing to rate setting to the joint standing committee of the Legislature having jurisdiction over labor matters. [PL 2023, c. 412, Pt. AAA, §7 (NEW).]
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
4. Self-employed individuals. The following provisions govern self-employed individuals.
A. A self-employed individual who elects coverage under section 850?G shall pay up to 50% of the premium required by subsection 3 on that individual’s income from self-employment. [PL 2023, c. 412, Pt. AAA, §7 (NEW).]
B. A self-employed individual who elects coverage under section 850?G shall remit the premium amount required by this subsection directly to the administrator, in the form and manner required by the commissioner by rule. [PL 2023, c. 412, Pt. AAA, §7 (NEW).]
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
5. Employers. The following provisions govern employers.
A. An employer with 15 or more employees may deduct up to 50% of the premium required for an employee by subsection 3 from that employee’s wages and shall remit 100% of the combined premium contribution required by subsection 3 to the fund. [PL 2023, c. 412, Pt. AAA, §7 (NEW).]
B. An employer with fewer than 15 employees may deduct up to 50% of the premium required for an employee by subsection 3 from that employee’s wages and shall remit 50% of the premium required by subsection 3 to the fund. [PL 2023, c. 412, Pt. AAA, §7 (NEW).]
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
6. Limit on wages to determine premiums. Premiums are required up to the contribution and benefit base limit established annually by the federal Social Security Administration for purposes of the federal Old-Age, Survivors, and Disability Insurance program limits pursuant to 42 United States Code § 430.
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
7. Use. The premiums collected under this subchapter must be used exclusively for the payment of family leave benefits and medical leave benefits and the costs of administration of the program.
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
8. Approved private plan. An employer with an approved private plan under section 850?H is not required to remit premiums under this section to the fund.
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
9. Failure or refusal to make premium contributions. An employer that fails or refuses to make premium contributions as required in this section must be assessed 1.0% of its total annual payroll for each year it so failed to comply in addition to any amounts previously owed, or fraction thereof, in addition to the total amount of family leave benefits and medical leave benefits paid to covered individuals for whom it failed to make premium contributions. The rate of assessment imposed by this subsection must be adjusted annually consistent with subsection 3, paragraph B.
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
10. Self-employed individual who elects coverage and fails or refuses to make premium contributions. A self-employed individual who elects coverage under section 850?G and who fails or refuses to make premium contributions for at least 2 quarters as required in this section may be disqualified from family leave benefits and medical leave benefits. The self-employed individual’s disqualification terminates upon:
A. The self-employed individual’s remittance of all previously owed premium contributions as required in this section; and [PL 2023, c. 412, Pt. AAA, §7 (NEW).]
B. Following remittance as required by paragraph A, the self-employed individual’s remittance of premium contributions as required in this section for an additional number of quarters equivalent to the number of quarters for which the self-employed individual failed or refused to make premium contributions. [PL 2023, c. 412, Pt. AAA, §7 (NEW).]
[PL 2023, c. 412, Pt. AAA, §7 (NEW).]
SECTION HISTORY
PL 2023, c. 412, Pt. AAA, §7 (NEW).