Dufour Tax Group, LLC

Dufour Tax Group LLC specializes in providing comprehensive strategic tax planning and compliance services to individuals and businesses across the globe. With a broad set of in-house skills and experience, we have the flexibility to work with a multitude of clients – from startups to multimillion

215 Commercial Street Portland, ME, 04101 United States

Dufour Tax Group LLC specializes in providing comprehensive strategic tax planning and compliance services to individuals and business across the globe.

With a broad set of in-house skills and experience, we have the flexibility to work with a multitude of clients - from startups to multi-million dollar enterprise-level companies.

Maine Retirement Plan Mandate

January 24, 2024  /  Kelly Dufour

The registration for Maine's new mandatory retirement program for employers commenced on January 1st, 2024. Here is what you need to know about this initiative.
 
The Maine Retirement Investment Trust (MERIT) is designed to aid those without employer-based retirement plans by initiating automatic payroll deductions into a ROTH IRA for savings. Covered Employers are obligated to register with MERIT, enroll their Covered Employees, and submit payroll deduction contributions to the program administrator.
 
A Covered Employer is one with more than five Covered Employees and a business history of at least two years. If an employer already provides a tax-favored retirement plan to all employees, then this will satisfy the mandate.
 
Covered Employees encompass individuals aged 18 or older with wages attributed to Maine during the calendar year. This includes part-time, temporary employees, and seasonal employees - with some exceptions. For employers with a workforce in multiple states, only those with wages in Maine are obliged to be registered with MERIT.
 
Key Dates to Remember:

  • April 30th, 2024: Deadline for registration of Covered Employers with 15 or more Covered Employees.

  • June 30th, 2024: Deadline for registration of Covered Employers with 5 to 14 Covered Employees.

  • If your business becomes a Covered Employer after December 31st, 2024, registration must be completed within 12 months of becoming covered.

The registration process will be facilitated through a portal on mainesaves.org. When registering on the portal, prepare the following information:

  • Business Name

  • Employer Identification Number (EIN)

  • Mailing Address

  • Details of the designated point of contact: Name, contact number, and email address

  • Information for Covered Employees including name, Social Security Number (SSN), date of birth, address, and contact details (email/number).

 
Failure to register by the deadlines will result in penalties. Late registration incurs a penalty of $20 per Covered Employee, which escalates to $50 per employee after July 1st, 2026, and further increases to $100 per employee after July 1st, 2027.
 
Other Responsibilities:

Covered Employers are accountable for registering their Covered Employees and managing the deduction and remittance of payroll contributions to MERIT. Covered Employees hold the responsibility of verifying their eligibility to contribute to an IRA. Unless a Covered Employee chooses to opt out of MERIT or selects an alternative contribution rate through the employee portal, the standard payroll deduction rate is 5% of their wages. This rate will increase by 1% annually at the start of each new calendar year, with a maximum limit of 10%, unless employees opt out of automatic increases. Employers are prohibited from making employer contributions to MERIT on behalf of their employees.