What would the IRS flag about how you've been paying your nanny?

Maine has a progressive income tax and a Paid Family and Medical Leave program that provides benefits for qualifying events. The state minimum wage exceeds the federal level.

State unemployment insurance (SUI). Maine requires household employers to register and pay state unemployment tax once wages cross its applicable threshold. New York and DC use $500 per quarter; many states use $1,000. New-employer rate range in Maine: 0.22% - 5.4%. Missing the registration is one of the most common audit findings — the simulator flags it when your quarterly wages cross the applicable threshold.

State income tax withholding. Maine has state income tax, which means you may need to withhold from your nanny's paycheck (it depends on whether they elect withholding on the state W-4 equivalent). If they do, you owe quarterly remittance and an annual state W-2 reconciliation. The simulator flags missing withholding setup or unreported wages.

Paid Family Leave (PFL). Maine runs a state-administered PFL program that applies to household employees. These are typically funded by employee withholding (some states add an employer contribution) and require separate registration and remittance from FICA/FUTA. The simulator flags missing setup or under-withholding.

Minimum wage. The minimum wage in Maine is $15.10/hour. If you paid below this rate, the simulator surfaces it as a Department of Labor exposure — separate from tax findings, and often more expensive (back wages plus liquidated damages).

Run the audit above to see exactly which Maine rules apply to your situation — each finding comes with dollar exposure and a concrete next step.