LD106

Maine LD106 proposes to tax paid family and medical leave benefits at a rate of 5%.

Maine LD106 amends the state tax code to subject paid family and medical leave benefits to state income tax, at a rate of 5%, to the extent those benefits are not included in the taxpayer's federal adjusted gross income. The bill allows individuals filing a new claim for these benefits to elect to have the administrator of the program deduct and withhold state income tax from their benefits. It also requires the administrator to deduct and withhold state income tax when an individual makes such an election.