Maine Rule 945 Report
The Maine Rule 945 Report is a statutory requirement for most businesses and organizations operating in the State of Maine. It is designed to improve transparency regarding the compensation and benefits paid to senior officers and key employees, and to help the public understand how public funds or charitable contributions are being used.
Table of Contents
- What Is Rule945?
- Who Must File?
- Key Elements of the Report
- Filing Deadline and Frequency
- How to File the Report
- Penalties for NonCompliance
- Best Practices for Compliance
- Helpful Resources
What Is Rule945?
Rule945 is part of the Maine Revised Statutes (Title22C) and requires covered entities to submit an annual compensation report to the Office of the Attorney Generals Consumer Advocacy Division. The purpose of the rule is to promote accountability and give Maine citizens clear insight into how executive compensation is structured within organizations that receive public money, charitable contributions, or that have a significant public impact.
Who Must File?
The filing requirement applies to:
- Nonprofit charitable organizations that receive more than $5million in total contributions or revenue.
- Publicly funded entities such as staterun hospitals, universities, and certain public utility companies.
- Private companies that receive state or local government contracts exceeding $250,000 in a fiscal year.
If your organization falls into any of these categories, you are required to submit a Rule945 Report each year.
Key Elements of the Report
The report must contain detailed information about compensation, benefits, and related financial items for each covered employee. The required sections are:
1. Basic Employee Information
| Data Point | Description |
|---|---|
| Name | Full legal name of the employee. |
| Title | Job title as it appears on the organizations official records. |
| Employment Status | Fulltime, parttime, or contract. |
2. Compensation Details
- Base salary or hourly wage.
- Annual bonus amounts.
- Stock options, restricted stock units, or other equity awards and their fair market value.
- Deferred compensation and retirement plan contributions.
3. Benefits and Perks
- Health, dental, and vision insurance premiums paid by the employer.
- Life and disability insurance coverage.
- Companyprovided vehicles, housing allowances, or travel reimbursements.
- Professional development funds, conference fees, and membership dues.
4. Severance and ChangeinControl Payments
If the employee received any severance, termination, or changeincontrol payouts, the amount and reason must be disclosed.
5. Signatures and Certification
The report must be signed by an authorized officer (typically the CFO or CEO) affirming that the information is complete and accurate under penalty of perjury.
Filing Deadline and Frequency
The Rule945 Report is due **Annually**:
- For organizations whose fiscal year ends on December31, the filing deadline is **March31** of the following year.
- For entities with a different fiscal yearend, the deadline is the last day of the third month after the fiscal year ends.
All reports must be submitted electronically through the Attorney Generals online portal.
How to File the Report
- Gather Data: Compile compensation, payroll, and benefits data from HR and finance systems.
- Complete the Template: Download the official Rule945 Excel template from the Attorney Generals website and fill in the required fields.
- Validate Figures: Perform a crosscheck with payroll registers and board minutes for bonuses or equity awards.
- Upload: Log in to the Maine AG portal, select Rule945 Report, and upload the completed file.
- Confirm Receipt: You will receive an email confirmation; keep this for your records.
If you encounter technical issues, the portal provides a help desk number and email support.
Penalties for NonCompliance
Failure to file a complete and timely Rule945 Report can result in:
- Monetary fines ranging from $500 to $5,000 per day of noncompliance.
- Potential civil action by the Attorney General for recovery of misused public funds.
- Loss of eligibility for state contracts or grant funding.
Repeated violations may lead to increased penalties and heightened scrutiny of the organizations governance practices.
Best Practices for Compliance
- Maintain Separate Records: Keep a dedicated compensation ledger that aligns with the Rule945 fields.
- Annual Review: Conduct a compliance check each fiscal year well before the filing deadline.
- Board Involvement: Ensure the boards compensation committee reviews the data and signs off on the final report.
- Use Automated Tools: Payroll and HR software that can export data directly into the required format reduces errors.
- Training: Provide annual training for HR and finance staff on the specific reporting requirements.
Helpful Resources
- Official Rule945 Page Maine Attorney General
- Maine Revised Statutes Title22C
- Sample completed report (PDF) available on the AG website.
- Webinar recordings on Preparing for Your Rule945 Filing hosted by the Maine Nonprofit Association.
