[SchoolFinance] [EXT] Re: PFML question

Thu Dec 5 13:53:39 EST 2024

This has been a great source of confusion. My understanding is wages are to
be rounded to the nearest cent but the contributions/premiums to be
deducted need to be rounded to the nearest dollar.  This is based on the
Final Rules, page 15.

[image: image.png]

*Laura Parker, Director of Business and Finance*
MSAD 49 - Business Office
8 School Street, Fairfield, ME 04937
207-453-4200 Ext. 3112

On Thu, Dec 5, 2024 at 1:42 PM Shelley Cummings <s.cummings2 at msad17.org>
wrote:

> I don't believe it should round to the nearest dollar. There was some
> confusion during the training session. They used examples with no cents,
> but said it should round to the cent.
>
>
> On Thu, Dec 5, 2024 at 1:29 PM Laura Parker <lparker at msad49.org> wrote:
>
>> We set up a deduction manually in SERP, however I am struggling on how to
>> force the deduction to round to the nearest dollar.
>> Hoping the Tyler update will address this problem.
>>
>> On Thu, Dec 5, 2024 at 1:10 PM Katie Gourley <KATIE.GOURLEY at rsu25.org>
>> wrote:
>>
>>> Has anyone set up the deduction in ERP yet?
>>>
>>> Katie Gourley
>>> RSU 25
>>> Business Manager
>>> 207-469-7311
>>> katie.gourley at rsu25.org <katie at rsu25.org>
>>>
>>>
>>> On Thu, Dec 5, 2024 at 10:27 AM Dawn Fickett <dfickett at msad37.org>
>>> wrote:
>>>
>>>> Agree, Stacie Field.  It's not fair to employers who already provide
>>>> paid leave to now have to pay for this other leave!
>>>>
>>>> On Thu, Dec 5, 2024 at 10:02 AM Field, Stacie <sfield at rsu16.org> wrote:
>>>>
>>>>> Yes, Medicare also has an employer portion, but employees pay both
>>>>> those taxes (FICA and Medicare).
>>>>> We pay no portion of SUTA or FUTA, nor can the employer pass any
>>>>> portion of these taxes on to employees.
>>>>> This is the craziest thing I have ever seen.  Why don't they just
>>>>> assess the leave to employers who don't have paid leave, instead of making
>>>>> Maine workers pay for it?
>>>>> I did leave that comment during the open comment time frame.
>>>>>
>>>>> Stacie Field
>>>>> Business Manager
>>>>> RSU 16 - Poland, Mechanic Falls, Minot
>>>>> 207.998.2727 ext 102
>>>>>
>>>>>
>>>>> On Thu, Dec 5, 2024 at 8:53 AM Lisa Harkin <lharkin at kitteryschools.com>
>>>>> wrote:
>>>>>
>>>>>> 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
>>>>>>>>>
>>>>>>>>> _______________________________________________
>>>>>>>>> SchoolFinance mailing list
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>>>>>>>>
>>>>>>>>
>>>>>>>>
>>>>>>>> --
>>>>>>>> Lisa Harkin
>>>>>>>> Finance Manager
>>>>>>>> _______________________________________________
>>>>>>>> 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
>>>>>>
>>>>>>
>>>>>>
>>>>>> --
>>>>>> Lisa Harkin
>>>>>> Finance Manager
>>>>>> _______________________________________________
>>>>>> 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
>>>>
>>>>
>>>>
>>>> --
>>>>
>>>>
>>>>
>>>>
>>>> *Dawn L. FickettAssistant SuperintendentRSU/SAD #37*
>>>> *1020 Sacarap Road*
>>>>
>>>>
>>>> *Harrington ME 04643Telephone: 207-483-2734Fax: 207-483-6051*
>>>>
>>>>  *“Education is one thing no one can take away from you.” —Elin
>>>> Nordegren*
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>>>
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>
>
>
> --
> Shelley Cummings
> Oxford Hills Technical School
> Business Manager
> 207-743-7756 (opt 4)
>
> *"The flaw in our character is our insistence on separating blue-collar
> jobs from white-collar jobs, and encouraging one form of education over
> another".....Mike Rowe*
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