MERIT enforcement: What will enforcement compliance look like for Maine businesses? Below find information regarding the enforcement process for the Maine Retirement Investment Trust (MERIT).
Who will enforcement affect?
Maine businesses that have not met the following criteria by their deadline are subject to enforcement action.
Employers with 5 or more employees that have been in business two or more years must comply with the workplace retirement statute.
Employers meeting these criteria must either:
Register with MERIT, an easy, no-fee workplace retirement option.
OR
Certify an exemption from MERIT, which means the Employer offers a qualified workplace retirement plan.
How to avoid enforcement action?
You have two options to avoid enforcement action and be in compliance:
Register your business and begin submitting contributions for all active employees.
Certify that your business offers a qualified retirement plan at meritsaves.com.
Current & Past Deadlines
Each year newly eligible employers are notified it’s time to register or certify their exemption for MERIT. Here are the deadlines for each year.
Deadline for Employers Notified in 2024 (15 or more employees) – April 30, 2024
Deadline for Employers Notified in 2024 (5 or more employees) – June 30, 2024
Deadline for Employers Notified in 2025 – June 30, 2025
Deadline for Employers Notified in 2026 – June 30, 2026
Newly eligible employers will have a deadline of June 30th of the year of their notice.
Fee Assessment – What are the penalties?
Maine uses a tiered enforcement structure. Penalties are assessed on a per-employee basis and increase over time.
- Businesses that fail to comply in their first year may be assessed a fine of: $20 per covered employee.
- Businesses that continue to remain out of compliance for two years may be assessed: $50 per covered employee.
- Businesses that remain out of compliance for longer than two years may be assessed: $100 per covered employee each year that they are not in compliance.
What does that mean for my business?
Penalties are assessed based on the number of employees provided by the Maine Department of Labor or the number of active employees listed in your MERIT portal. Let’s look at a few examples:
| Number of Employees | Initial Penalty Assessed | Potential Penalty |
| 5 employees | $20 per employee | $100 |
| 10 employees | $20 per employee | $200 |
| 25 employees | $20 per employee | $500 |
| 50 employees | $20 per employee | $1,000 |
If those same businesses remain out of compliance, penalties could reach:
| Number of Employees | Initial Penalty Assessed | Potential Penalty |
| 5 employees | $100 per employee | $500 |
| 10 employees | $100 per employee | $1,000 |
| 25 employees | $100 per employee | $2,500 |
| 50 employees | $100 per employee | $5,000 |
How do I pay my penalty?
Penalties can be paid after a Notice of Penalty Assessment has been received with a penalty total and remittance instructions.
Referral to the State of Maine Attorney General
Employers who fail to comply with Maine’s retirement requirement statute can be referred to the State of Maine Attorney General at any time during their non-compliance. Paying penalties does not make you compliant. You can still be referred to the Attorney General after paying the enforcement penalty.
Do you still have questions?
If you still have MERIT enforcement questions, please contact us at info[@]mainesaves.org or by calling (207) 888-4706.
