[SchoolFinance] PFML question

Thu Dec 5 08:45:43 EST 2024

Thanks Stacie for the clarification about SUTA and FUTA being employer
taxes.  Although a portion of FICA is employer, but we won't go there!
This really is a bad situation.

On Wed, Dec 4, 2024 at 3:41 PM Field, Stacie <sfield at rsu16.org> wrote:

> Yes, I looked at the Circular E, and pub 15-A and 15-B. Also spoke
> directly with Tim Applegate, and the IRS last week.
> I keep arguing you cannot tax an employee on Section 125 or 403(b)
> reduction agreements. Not getting anywhere.
> SUTA and FUTA are employER taxes, not employEE, so none of this matters.
>
> We have to honor reduction agreements, which are under IRS regulations.
> I do not believe the State of Maine can override the IRS.  I don't feel I
> have gotten anywhere. I am just hoping for a lawsuit down the road. If I
> can find an attorney willing to take it on, I'll start one.   My two cents,
> less .5% of course.
>
> Stacie Field
> Business Manager
> RSU 16 - Poland, Mechanic Falls, Minot
> 207.998.2727 ext 102
>
>
> On Wed, Dec 4, 2024 at 3:02 PM Lisa Harkin <lharkin at kitteryschools.com>
> wrote:
>
>> OK, me again, last post I promise.
>> Has anyone looked at the Circular E?
>> Exempt from FUTA (ie PFML?)
>>
>> Government employment:
>>
>> 1. State/local governments and political subdivisions, employees of:
>>
>> a. Salaries and wages (includes
>>
>> payments to most elected and appointed officials). See
>>
>> chapter 3 of Pub. 963.
>>
>>
>> AND
>>
>>
>> Insurance for employees:
>>
>> 1. Accident and health insurance
>>
>> premiums under a plan or system for
>>
>> employees and their dependents generally or for a class or classes of
>>
>> employees and their dependents
>>
>> On Wed, Dec 4, 2024 at 2:34 PM Andrea Disch <adisch at msad11.org> wrote:
>>
>>> Yes, Lisa, my apologies for not being clearer.
>>>
>>> It was clarified during yesterday's PFML portal webinar that PFML does
>>> not allow for the carve-out earnings exemptions that are available under
>>> unemployment.
>>>
>>>
>>>
>>> Andrea Disch
>>> Business Manager
>>>
>>>
>>> Maine School Administrative District No. 11
>>> 150 Highland Avenue • Gardiner, Maine 04330
>>>
>>>
>>>
>>> 207-582-5346
>>>
>>> *aDisch at msad11.org <aDisch at msad11.org>*
>>>
>>> *www.msad11.org <http://www.msad11.org>*
>>>
>>>
>>>
>>>
>>>
>>> On Wed, Dec 4, 2024 at 1:12 PM Lisa Harkin <lharkin at kitteryschools.com>
>>> wrote:
>>>
>>>> I heard that PFML has the same exemptions as SUTA and FUTA, so I am
>>>> deducting Health and Dental from gross wages.
>>>> Reading your reply again, you are talking about earnings, not
>>>> exemptions to gross earnings, so Health exemptions are a completely
>>>> different subject.  Apologies.
>>>>
>>>> Some volunteers get paid, oxymoron, I know.
>>>>
>>>> On Wed, Dec 4, 2024 at 10:59 AM Andrea Disch <adisch at msad11.org> wrote:
>>>>
>>>>> MSAD 11 will be deducting PFML from all school board
>>>>> member compensation, as well.
>>>>> It was stated again at yesterday's meeting that PFML does not have the
>>>>> earnings exemptions that SUTA has, including school board members.
>>>>>
>>>>>
>>>>>
>>>>>
>>>>>
>>>>> Andrea Disch
>>>>> Business Manager
>>>>>
>>>>>
>>>>> Maine School Administrative District No. 11
>>>>> 150 Highland Avenue • Gardiner, Maine 04330
>>>>>
>>>>>
>>>>>
>>>>> 207-582-5346
>>>>>
>>>>> *aDisch at msad11.org <aDisch at msad11.org>*
>>>>>
>>>>> *www.msad11.org <http://www.msad11.org>*
>>>>>
>>>>>
>>>>>
>>>>>
>>>>>
>>>>> On Wed, Dec 4, 2024 at 9:12 AM Coulombe, Jessica <
>>>>> jessica.coulombe at rsu4.org> wrote:
>>>>>
>>>>>> Hello!
>>>>>>
>>>>>> A question I have is for School Board members. I am thinking that
>>>>>> PFML wages would be subject to the PFML deduction., as we consider them
>>>>>> volunteers that receive an honorarium stipend.  Your thoughts?
>>>>>>
>>>>>> Thanks
>>>>>> Jessica
>>>>>>
>>>>>> On Wed, Dec 4, 2024 at 9:01 AM Andrea Disch <adisch at msad11.org>
>>>>>> wrote:
>>>>>>
>>>>>>> I have not received any specific guidance regarding but we are being
>>>>>>> told that there are few exceptions to PFML, fewer exceptions than for SUTA.
>>>>>>> My guess would be that if the wage flows through payroll, and you
>>>>>>> would withholdSUTA, you will also need to withhold PFML taxes.
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> Andrea Disch
>>>>>>> Business Manager
>>>>>>>
>>>>>>>
>>>>>>> Maine School Administrative District No. 11
>>>>>>> 150 Highland Avenue • Gardiner, Maine 04330
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> 207-582-5346
>>>>>>>
>>>>>>> *aDisch at msad11.org <aDisch at msad11.org>*
>>>>>>>
>>>>>>> *www.msad11.org <http://www.msad11.org>*
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>>
>>>>>>> On Mon, Dec 2, 2024 at 2:44 PM Krol, Gabrielle <
>>>>>>> gabrielle.krol at msad52.org> wrote:
>>>>>>>
>>>>>>>> Good Afternoon,
>>>>>>>>
>>>>>>>> I am wondering if anyone has seen or heard any guidance on if we
>>>>>>>> are imposing this tax to Cash in Lieu, or Travel stipends.  I may have
>>>>>>>> missed this guidance.
>>>>>>>>
>>>>>>>> Thank you!
>>>>>>>>
>>>>>>>> --
>>>>>>>> Gabrielle Krol
>>>>>>>> Business Manager
>>>>>>>> MSAD 52
>>>>>>>> 486 Turner Center Road
>>>>>>>> Turner, ME 04282
>>>>>>>> 207-225-1006
>>>>>>>> _______________________________________________
>>>>>>>> SchoolFinance mailing list
>>>>>>>> SchoolFinance at maillist.informe.org
>>>>>>>> http://maillist.informe.org/mailman/listinfo/schoolfinance
>>>>>>>
>>>>>>> _______________________________________________
>>>>>>> SchoolFinance mailing list
>>>>>>> SchoolFinance at maillist.informe.org
>>>>>>> http://maillist.informe.org/mailman/listinfo/schoolfinance
>>>>>>
>>>>>>
>>>>>>
>>>>>> --
>>>>>> *Jessica Coulombe*
>>>>>> Payroll Specialist
>>>>>> Wellness Coordinator
>>>>>> RSU 4
>>>>>> 971 Gardiner Rd
>>>>>> Wales, Me 04280
>>>>>> 207-375-4273 ext 175  or Option 2
>>>>>> fax:207-375-2522
>>>>>> jessica.coulombe at rsu4.org
>>>>>>
>>>>>>
>>>>>>
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>>>>
>>>>
>>>>
>>>> --
>>>> Lisa Harkin
>>>> Finance Manager
>>>> _______________________________________________
>>>> SchoolFinance mailing list
>>>> SchoolFinance at maillist.informe.org
>>>> http://maillist.informe.org/mailman/listinfo/schoolfinance
>>>
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>>
>>
>> --
>> Lisa Harkin
>> Finance Manager
>> _______________________________________________
>> SchoolFinance mailing list
>> SchoolFinance at maillist.informe.org
>> http://maillist.informe.org/mailman/listinfo/schoolfinance
>
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-- 
Lisa Harkin
Finance Manager
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