Maine’s PFML Now Live: What Payroll Needs to Know

Maine’s Paid Family and Medical Leave (PFML) program began paying benefits on May 1, 2026.

The state DOL runs the program with Aflac as claims administrator; payroll contributions have
run since January 2025.

PFML Contribution Math and W-2 Reporting

For calendar years 2025-2027, the joint employer-employee contribution rate is 1% or 0.5% of wages by employer size:

• Employers with 15 or more employees contribute 1% and may deduct up to half from employees’ wages.
• Employers with fewer than 15 employees contribute 0.5% and may deduct the entire amount from employees’ wages.

Payroll teams must report the employee premium in Box 14 of the W-2 as “MEPFML.” If the employer pays the employee’s share, that amount is included in W-2 wages.

Benefit Taxability

If the employee paid the full premium, the benefits are not taxable; if the employer paid any portion, the taxable portion is reported on Form 1099-G in 2026 and, beginning in 2027, the taxable portion is treated as wages on Form W-2.

Family leave benefits are reported as taxable income on Form 1099-G.

For more information, see IRS guidance on issues of taxability.

Payroll Action Steps

• Confirm Maine PFML withholding is coded by employer size and audit any Maine-based remote workers who were onboarded as out-of-state employees.
• Add “MEPFML” to Box 14 mapping for employee-paid contributions.
• Reconcile Aflac-issued benefit payments against W-2 and 1099-G reporting. For medical-leave benefits in 2026, use 1099-G for the taxable portion when the employer paid any portion of the premium; beginning in 2027, that taxable portion is reported on Form W-2.
• Late contributions trigger a 1% penalty on total quarterly payroll; the quarterly remittance is due on the last day of the month following the end of each quarter.

Employers with questions can send a message through the Maine Paid Leave Contributions Portal or call 207-621-5024 between 8 a.m. and 5 p.m. Monday-Friday.