Maine State Tax Routine (METX)

The Maine State Tax Routine Special Routine Processing utilizes the following steps:

Line 1	Multiply the employee’s gross wages for the current payroll period by the number of payroll periods in a year to obtain their Annualized Gross Income (GI) and then convert the total wages to Annualized Wage amount.
Line 2	Retrieve Annual Exemption Amount from the Tax Parameters (TAXP) reference page.
Line 3	Compute State Tax Allowance from Employee Tax Parameter (TAX) or State Tax Enrollment (TAXS) multiplied by the Annual Exemption Amount.
Line 4	Calculate the Maine Standard Deduction: If the annualized wage amount is equal to or less than the Minimum Annual Gross amount, retrieve the amount from Minimum Standard Deduction Amount field. If the annualized wage amount is more than the Maximum Annual Gross amount, retrieve the amount from Rate field. If the annualized wage amount is between the Minimum Annual Gross amount and Maximum Annual Gross amount, calculate the Maine Standard deduction amount as follows: Minimum Standard Deduction Amount x (Maximum Annual Gross Amount - Annualized Wage Amount)/ Maximum Standard Deduction Amount.
Line 5	Determine the employee taxable wage by subtracting the annual exemption amount plus the standard deduction.
Line 6	Compute annualized withholding amount based on the tax rate setup in Marginal Tax Rates (DEDX).
Line 7	Divide the annualized withholding amount by the payroll frequency.

Note: The Maine State Tax Routine is only available for sites that utilize the Next Generation Payroll service.

Data Setup Considerations

Sites will need to ensure they have implemented the following Business Process/Data Setup changes at their site prior to using the Maine State Tax Routine.

Tax Parameters (TAXP) setup for Maine State Tax Deductions.

Annual exemption amount - the personal exemption amount for Maine Tax Withholding.
Maximum Standard Deduction Amount - The amount used in the calculation for the standard deduction amount if the annualized wage amount is between the Minimum Annual Gross Amount and Maximum Annual Gross amount.
Minimum Standard Deduction Amount - The standard deduction amount if the annualized wage amount is equal to or less than the Minimum Annual Gross Amount.
Rate - The standard deduction amount if the annualized wage amount is more than the Maximum Annual Gross Amount.
Maximum Annual Gross Amount - The higher gross income amount used to determine the Maine standard deduction amount.
Minimum Annual Gross Amount - The lower gross income amount used to determine the Maine standard deduction amount.

When a TAX, TAXS or ETAXS transaction is submitted with a Tax Class or a State Tax Class that is associated to a deduction plan with the Maine State Tax Routine, the State Tax Allowance field is used to enter the number of exemptions claimed on the Form W-4ME.

The functionality described above is only available when utilizing the Next Generation Payroll service.