Volume 28, Issue 3		June 2018

 

Maine Department of Labor Announces
New Unemployment Insurance Tax System for
Maine Employers in 2018

On December 6, 2017, the Maine Department of Labor (MDOL), Bureau of Unemployment Compensation (BUC) implemented the first phase of ReEmployME, a modernized replacement system for Maine’s unemployment insurance (UI) program. The first phase focused on the UI benefits claim filing and management.

The second phase of ReEmployME, Employer Services (ES) tax functionality, will begin implementation in August with Registration for new Maine employers. The main implementation of the new system is expected in early November, 2018. Since the late ‘90s, Maine Revenue Services (MRS) has performed some of the UI Tax business functions for MDOL BUC. The new UI Tax system will allow MDOL BUC to resume most of those business functions and provide an improved and modernized employer online experience. 

One of our primary goals for ReEmployME Phase 2 is to provide Maine businesses with relevant information that may impact their business with MDOL BUC. In the weeks to come, both MRS and MDOL will be providing links to FAQs and an online repository of communication statements.

Please visit the MDOL BUC Employer Services homepage for updates about the new ReEmployME tax system and how it will affect your business or call an Employer Services customer representative at (207) 621-5120 or toll free at (844) 754-3508.  http://www.maine.gov/labor/unemployment/tax.shtml

For those employers that use a payroll processor or tax preparer, please provide them with a copy of this statement.

 

IMPORTANT NOTICE TO FUEL VENDORS

The Sales, Fuel, and Special Tax Division of Maine Revenue Services has updated Instructional Bulletin No. 13, “Sales of Fuel and Utilities”, to correct a discrepancy in prior guidance on the taxability of certain residential fuel sales. 

A sales tax exemption applies to sales of fuel used for cooking and heating in “buildings designed and used for both human habitation and sleeping.” 

The Reference Guide to the Sales and Use Tax Law identified fuel sold for use in detached garages as taxable. Instructional Bulletin No. 13, “Sales of Fuel and Utilities”, identified garages as taxable, without providing a distinction for those that are attached to a residence. 

Instructional Bulletin No. 13 has now been updated to clarify the different treatment of fuel used for heating attached versus detached garages. Fuel used to heat an attached garage qualifies for the sales tax exemption. Fuel used to heat a detached garage is subject to sales tax. In instances when the fuel is used for both taxable and exempt purposes, a prorated exemption may be applied based on the square footage of the residential area. 

The revised bulletin is available at maine.gov/revenue/salesuse/salestax/bulletinssales.htm.