[SchoolFinance] PFML question

Sat Dec 7 07:03:49 EST 2024

Thank you Adam.
I think we will be going the same route, unfortunately, even though, like
all others, we are in complete disagreement.

I am not too worried about producing files for upload, we will use an
Accumulators Report and use Excel to round.

On Fri, Dec 6, 2024 at 3:47 PM Adam Hanson <
ahanson at lewistonpublicschools.org> wrote:

> After attending webinars, reading the latest rules and updated FAQ, this
> is how we are planning to proceed until we hear otherwise from the state or
> the IRS:
> 1. We will be treating the employee share of PFML deductions as
> "post-tax", so withheld on full gross pay, not reduced by any other
> deductions, even if they fall under a Section 125 agreement.
> 2. We will be including anything we otherwise treat as "taxable" wages in
> the 1% calculation. So that will include cash in lieu, travel stipends and
> cell phone stipends.
>
> FYI, I fully agree with everyone who has expressed their opinions about
> the insanity of this law, particularly the fact that it includes public
> school departments.
> We have Enterprise ERP (AKA Munis) software, and they have provided no
> guidance as to how we will produce our quarterly files for upload, or how
> we will exclude from the reports the employee groups to whom the law does
> not yet apply because of the October 2023 "temporary grandfathering" rule.
> They are "looking into it".
>
> Good luck to everyone.
>
> On Thu, Dec 5, 2024 at 10:27 AM Field, Stacie <sfield at rsu16.org> wrote:
>
>> Yes, that is what they are all saying.
>> But, it is not right to disregard IRS reduction agreements for the
>> employee portion.
>> That is my argument.
>>
>> Stacie Field
>> Business Manager
>> RSU 16 - Poland, Mechanic Falls, Minot
>> 207.998.2727 ext 102
>>
>>
>> On Thu, Dec 5, 2024 at 10:02 AM Deb Roberts <DRoberts at msmaweb.com> wrote:
>>
>>> I was on a zoom meeting with Reggie presenting to our local Chamber this
>>> morning. I asked about deducting section 125 amounts before calculating the
>>> tax – his answer was to calculate the tax on gross wages before any taxes.
>>>
>>>
>>>
>>> Deb
>>>
>>>
>>>
>>> *From:* SchoolFinance <schoolfinance-bounces at maillist.informe.org> *On
>>> Behalf Of *Lisa Harkin
>>> *Sent:* Thursday, December 5, 2024 8:46 AM
>>> *To:* Moderated information sharing for school business managers <
>>> schoolfinance at maillist.informe.org>
>>> *Subject:* Re: [SchoolFinance] PFML question
>>>
>>>
>>>
>>> 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
>>>
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>>>
>>>
>>>
>>> --
>>>
>>> *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
>>>
>>> _______________________________________________
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>>>
>>> --
>>>
>>> Lisa Harkin
>>>
>>> Finance Manager
>>>
>>> _______________________________________________
>>> 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
>>>
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>
>
>
> --
> Adam Hanson
> Controller
> Lewiston Public Schools
> 36 Oak Street
> Lewiston, ME 04240
> Phone: (207) 795-4100, ext. 4051
> Fax: (207) 795-4177
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-- 
Lisa Harkin
Finance Manager
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