Hotels, motels, restaurants and seasonal businesses in Southwest Harbor must comply with MERIT if they meet the 5+ employees threshold — or offer a qualifying plan. Escalating: $20 per employee (2025-07-01 to 2026-06-30); $50 per employee (2026-07-01 to 2027-06-30); $100 per employee (on/after 2027-07-01).
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MERIT covers Maine employers with 5+ employees that do not offer a qualifying retirement plan. Counting rule: Headcount as of the date the employer certifies an exemption or onboards (MRSB Rule Ch. 101); penalties use Maine DOL employee counts. Must have been in business during both the current and the preceding calendar year.
Escalating: $20 per employee (2025-07-01 to 2026-06-30); $50 per employee (2026-07-01 to 2027-06-30); $100 per employee (on/after 2027-07-01). Penalties are being assessed now.
Already passed: All employers notified through 2026 (2026-06-30) — unregistered employers should register or certify an exemption now. Newly eligible employers: June 30 of the notice year.
5 M.R.S. §171, §173(3), §173(4)(A); MRSB Rule Ch. 101 · Official program: meritsaves.com · Verified 2026-09-17.
Yes, if the business meets the threshold. MERIT applies to Maine employers with 5+ employees that do not offer a qualifying plan. Hotels, motels, B&Bs and restaurants in Southwest Harbor follow the same rules as any other employer — seasonal operation does not exempt you.
Not automatically. Coverage depends on how Maine counts employees: Headcount as of the date the employer certifies an exemption or onboards (MRSB Rule Ch. 101); penalties use Maine DOL employee counts. Must have been in business during both the current and the preceding calendar year. Seasonal employers can also satisfy the mandate with a SIMPLE IRA or 401(k), which may exclude employees who work fewer than 1,000 hours a year.
Yes. Exempt if a plan under 401(a)/401(k), 403(a)/403(b), SEP (408(k)), SIMPLE (408(p)) or 457(b) was offered in the current or two preceding years; certification required. A private plan also gives you a real recruiting benefit for seasonal and year-round staff.
Yes. SECURE 2.0 Act tax credits are available to small businesses with fewer than 100 employees that start a new qualifying retirement plan (the full startup credit applies at 50 or fewer employees; it phases down from 51–100). Credits of up to $5,000/year for 3 years, plus up to $1,000 per employee in employer-contribution credits (phasing down over five years), are available regardless of whether your business is seasonal.
Already passed: All employers notified through 2026 (2026-06-30) — unregistered employers should register or certify an exemption now. Newly eligible employers: June 30 of the notice year. Penalty: Escalating: $20 per employee (2025-07-01 to 2026-06-30); $50 per employee (2026-07-01 to 2027-06-30); $100 per employee (on/after 2027-07-01). Penalties are being assessed now. Contact Kandelaki Solutions for a free compliance audit.
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