08 Form W-4ME A. Maine Employees’ Withholding Allowance Certificate (Form W-4ME). A

18-125 Chapter 803 Page 14 payee must furnish the payer with a signed Maine Employee’s Withholding Allowance Certificate (Form W-4ME) on the same date as the payee furnishes the payer with the required federal Employee’s Withholding Certificate (Form W-4 or W-4P). The payee must indicate on the Maine certificate the same marital status claimed on the federal certificate, except that a married payee may elect withholding at the higher single rate on the Maine certificate by checking the “married, but withholding at higher single rate” box. The Maine certificate must also list the number of withholding allowances the payee claims for Maine withholding, as determined in accordance with this rule. If the payee is required to provide the payer with a revised federal Form W-4 or W-4P because of a change in status and that change also affects information contained on the payee’s Form W-4ME, the payee must complete a new Form W- 4ME on the same date to reflect the same change. The revised Form W-4ME takes effect on the same date as the revised federal Form W-4 or W-4P. For individuals who do not qualify for a Maine exemption from withholding, the maximum number of Maine withholding allowances is calculated as follows: 1. An individual is allowed an allowance if they cannot be claimed as a dependent by another taxpayer; 2. An individual is allowed an additional allowance for their spouse if they will file as married filing jointly and the spouse cannot be claimed as a dependent by another taxpayer; 3. An individual is allowed an additional allowance if they will be filing as Head of Household; and 4. An individual is allowed an additional allowance for each child and dependent for whom they will be able to claim the federal child tax credit or the federal credit for other dependents. An individual may claim fewer allowances than the individual is entitled to claim without seeking approval. An individual who wants to claim more allowances than would be calculated for that individual under this rule must file a Personal Withholding Allowance Variance Certificate to obtain permission from the Assessor. B. Submission by employer of certain Maine Forms W-4ME. An employer/payer is required to submit a copy of Form W-4ME, along with a copy of any supporting information provided by the employee/payee, to MRS if: 1. The employer is required to submit a copy of federal Form W-4 to the Internal Revenue Service either by written notice or by published guidance as required by federal regulation 26 C.F.R. 31.3402(f)(2)-1(g); or 18-125 Chapter 803 Page 15 2. An employee performing personal services in Maine furnishes a Form W- 4ME to the employer containing a non-Maine address and, for any reason, claims no Maine income tax is to be withheld. Submission of a Form W- 4ME is not required if the employer reasonably expects that the employee will earn annual Maine-source income of less than $5,000. The copies of Form W-4ME required by this subsection must be submitted directly to the Withholding Unit at MRS separately from any other tax filings. C. Missing or invalid Form W-4ME. In any of the circumstances described in this subsection, a payer must withhold as if the payee is single and claiming no allowances. Maine income tax must be withheld at this rate until such time that the payee provides a valid Form W-4ME.This subsection applies when: 1. The payee has not provided a valid, signed Form W-4ME; 2. The Assessor notifies the payer that the payee’s Form W-4ME is invalid; or 3. The payee’s Personal Withholding Allowance Variance Certificate has expired, a new variance certificate has not been approved and submitted to the payee, and the payee has not provided the payer with a valid Form W- 4ME. If at any time the Assessor determines that the amount being withheld is inadequate, the Assessor may notify the payer of that determination and inform the payer of the appropriate withholding rate. The withholding rate specified by the Assessor will then remain in effect until the Assessor notifies the payer that the payer no longer is required to use that withholding rate. At that time, the payee may complete a new Form W-4ME and submit it to the payer. D. Electronic Form W-4ME. A payer may establish a system for its payees to submit Form W-4ME to the payer electronically. Such a system must include the following: 1. The electronic system must ensure that the information received by the payer reflects the information furnished by the payee and must document all occasions of payee access that result in the filing of a Form W-4ME. In addition, the design and operation of the electronic system, including access procedures, must ensure with reasonable certainty that the person accessing the system and filing the Form W-4ME is the payee identified in the form. 18-125 Chapter 803 Page 16 2. The electronic system must provide the payer with exactly the same information as the paper Form W-4ME. 3. The electronic filing must be signed by the payee under penalties of perjury. (a) The jurat (i.e., the perjury statement) must contain the language that appears on the paper Form W-4ME. The electronic program must inform the payee that the payee must make the declaration contained in the jurat and that the declaration is made by signing the Form W-4ME. The instructions and the language of the jurat must immediately follow the payee’s income tax withholding selections and immediately precede the payee’s electronic signature. (b) The electronic signature must identify the payee submitting the electronic Form W-4ME and authenticate and verify the submission. The terms “authenticate” and “verify” have the same meaning that they do when applied to a written signature on a paper Form W-4ME. An electronic signature can be in any form that satisfies the requirements of the Assessor. The electronic signature must be the final entry in the payee’s Form W-4ME submission. 4. Upon request by the Assessor, the payer must supply to the Assessor a paper copy of the electronic Form W-4ME and a statement that, to the best of the payer’s knowledge, the named payee is the person who filed the electronic Form W-4ME. The paper copy of the electronic Form W-4ME must provide exactly the same information as (but need not be a facsimile of) the paper Form W-4ME. 5. The electronic system must not allow the payee to modify or file an electronic Form W-4ME that does not comply with a notice as described in Section .08(C) above, specifying the amount or rate of withholding. E. Requests for increased withholding. A payee may request that the payer deduct and withhold an additional amount from wages or other periodic payments. The payer must comply with the payee's request, except that the amount deducted and withheld cannot exceed the payment amount that remains after the payer has deducted and withheld all amounts otherwise required to be deducted and withheld by federal and state law. The payee must make the request for the additional withholding amount on a Form W-4ME. F. Personal Withholding Allowance Variance Certificate. A payee may not claim a number of Maine withholding allowances that exceeds the number of allowances that would be calculated for that individual under this rule without 18-125 Chapter 803 Page 17 furnishing to the payer a Personal Withholding Allowance Variance Certificate approved by the Assessor. The payee must complete the Personal Withholding Allowance Variance Certificate according to the instructions and submit it to the Assessor for approval. If approved by the Assessor, the payee may then submit the approved variance certificate to the payer along with an otherwise properly completed Form W-4ME to support the number of allowances claimed. An approved variance certificate is valid only until December 31 of the year issued. Upon expiration of a variance certificate, the payer must withhold pursuant to Section .08(C) above, until such time the payee provides the payer a new variance certificate approved by the Assessor or submits a valid Form W- 4ME.