Paying employees accurately and on time is very important for any business. Usually you can calculate Maine payroll income tax withholdings in the following ways.
Calculate Maine state tax manually by using the state tax tables
Use payroll software to automate the tax calculations
Hire an accountant
Option 1: Calculate Maine State Income Tax Manually
If you like to calcualte state tax withholdings manually, you can refer to the Maine tax tables and step by step guide there.
Option 2: Payroll Software Saves ME Businesses Time and Money by Calculating the Taxes Automatically
EzPaycheck Payroll software is a good choice for many small business employers. Once you set up company and employee, ezPaycheck will calculate Maine income tax for you automatically. Here are the quick guide.
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Step 1: Download and install ezPaycheck payroll software
We have ezPaycheck 2008 to current available from our site. Please choose the right version to download. For example: If you need to calculate Year 2024 income tax, please download ezPaycheck 2024.
Step 2: Set up Company
Select the rigth Pay Period
Start ezPaycheck application, click the left menu "Company Settings" then click the sub menu "Company" to open the company setup screen. Please make sure you select the correct Pay Period there.
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Set up company tax information option
You can click the left menu "Company Settings" then click the sub menu "Tax Information" to open the company tax setup screen
Step 3: Set up Employee Profile
Enter employee address correctly
Start ezPaycheck application, click the left menu "Employees" then click the sub menu "Add Employee" to add employee profile. EzPaycheck calculates state tax based on employee address.
Enter the tax option for this employees
Step 4: Add and Print a check
You can click the "ADD" button above check list on the main screen to add a new check. Or you can click the ezPaycheck payroll software left menu "Checks" then click the sub menu "New Check" to open New Check screen.
Print paychecks
You can select one or multiple paychecks from list and click the Print button to print paychecks together.
Troubleshooting
If you cannot see the Maine tax on the paycheck, your employee's income may not be high enough to withhold ME state income tax.