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06. Do I need to withhold from composite filers?

If the nonresident member has $1000 or more in Maine-source income, but wants to be part of the composite return, the entity must file an exemption form (941E-ME). Each nonresident member participating in the composite exemption must sign an agreement to participate in the composite filing (Form 941CF-ME). This affidavit must be held by the pass-through entity. It is not necessary to submit a new affidavit each year. The affidavit will remain in force continuously as long as the member retains an ownership interest in the pass-through entity or it is revoked. The affidavit is automatically revoked if for any reason the pass-through entity does not properly file a Pass-through Entity Withholding Exemption Form (941E-ME) or fails to include the nonresident member in a composite filing of Maine income tax.