Sec. 1. 26 MRSA §1242 is enacted to read:

§1242.__Household employees

Notwithstanding any other provision of this subchapter, if a person who employs a household employee is allowed to file a report and remit payment of the withheld federal employer's unemployment contribution for the employee for the entire year at the time the person files an annual federal income tax return for that year, the person may file the report and remit payment of the withheld state employer's unemployment contribution for the employee for the entire year at the time the person files an annual state income tax return.

Sec. 2. 36 MRSA §5253, sub-§3 is enacted to read:

3.__Household employees.__Notwithstanding subsection 1, if a person who employs a household employee is allowed to file a withholding return and remit payment for the employee's withheld federal tax for the entire year at the time the person files an annual federal income tax return for that year, the person may file the withholding return and remit payment of the employee's withheld state tax for the entire year at the time the person files an annual state income tax return.

SUMMARY

Federal law allows a person who employs a household employee to report and pay all federal withholdings for that employee once a year at the time the person files an annual federal income tax return for that year. This bill allows a person who is allowed to report and pay all federal withholdings for a household employee once a year at the time the person files an annual federal tax return to also report and pay all state withholdings for the employee, including withheld income tax and the employer's unemployment contribution for the employee, once a year at the time the person files an annual state income tax return.