An Act To Exempt Overtime Pay from Individual Income Tax
Be it enacted by the People of the State of Maine as follows:
Sec. 1. 36 MRSA §5122, sub-§2, ¶QQ is enacted to read:
QQ. For taxable years beginning on or after January 1, 2019, overtime compensation received by an employee that is required to be paid by an employer under Title 26, section 664, subsection 3.
summary
This bill excludes from income tax overtime compensation if the employer is required by law to pay the overtime compensation to the employee.