Maine Creates Employer Penalty for Returned Unemployment Payments

Maine employers that have their unemployment tax payment returned may be subject to a penalty under a bill expected to go into effect July 14.

The penalty amount is the greater of $25 or 1% of the payment amount under LD 2101. The penalty applies if the returned payment results in the unemployment tax payment remaining unpaid.

Maine may return an employer payment for any reason, including insufficient funds, account closure, nonexistence of the account, and a stop-payment order, the bill said.

Gov. Janet Mills (D) signed LD 2101 into law on April 3.