| The Maryland State Agency that oversees the | | | | This information must be reported within 20 |
| collection and reporting of State income | | | | days of the hiring or rehiring. |
| taxes deducted from payroll checks is: | | | | |
| | | | The information can be sent as a W4 or |
| Comptroller of the Treasury | | | | equivalent by mail, fax or electronically. |
| | | | |
| Revenue Administration Div. | | | | There is a $20 penalty for a late report in |
| | | | Maryland and $500 for conspiracy. |
| Income Tax Bldg. | | | | |
| | | | The Maryland new hire-reporting agency can be |
| Annapolis, MD 21404-0466 | | | | reached at 888-634-4737 or 410-347-9911or on |
| | | | the web at |
| (410) 260-7150 | | | | |
| | | | Maryland does not allow compulsory direct |
| (800) 638-2937 | | | | deposit |
| | | | |
| Maryland requires that you use Maryland form | | | | Maryland requires the following information |
| "MW507, Employee's Maryland Withholding | | | | on an employee's pay stub: |
| Exemption Certificate" instead of a Federal | | | | |
| W-4 Form for Maryland State Income Tax | | | | Gross and Net Earningsitemized deductions |
| Withholding. | | | | |
| | | | Maryland requires that employee be paid no |
| Not all states allow salary reductions made | | | | less often than semimonthly, biweekly; less |
| under Section 125 cafeteria plans or 401(k) | | | | frequently for FLSA-exempt employees. |
| to be treated in the same manner as the IRS | | | | |
| code allows. In Maryland cafeteria plans are | | | | Maryland payroll law requires that |
| not taxable for income tax calculation; not | | | | involuntarily terminated employees must be |
| taxable for unemployment insurance purposes. | | | | paid their final pay by their next regular |
| 401(k) plan deferrals are not taxable for | | | | payday and that voluntarily terminated |
| income taxes; taxable for unemployment | | | | employees must be paid their final pay by the |
| purposes. | | | | next regular payday or by mail if employee |
| | | | requests it. |
| In Maryland supplemental wages are taxed at a | | | | |
| 4.75% plus county rate. | | | | There is no provision in Maryland law |
| | | | concerning paying deceased employees. |
| You must file your Maryland State W-2s by | | | | |
| magnetic media if you are required to file | | | | Escheat laws in Maryland require that |
| your federal W-2s by magnetic media. | | | | unclaimed wages be paid over to the state |
| | | | after three years. |
| The Maryland State Unemployment Insurance | | | | |
| Agency is: | | | | The employer is further required in Maryland |
| | | | to keep a record of the wages abandoned and |
| Division of Employment and Training | | | | turned over to the state for a period of 10 |
| | | | years. |
| 1100 N. Eutaw St. | | | | |
| | | | Maryland payroll law mandates no more than |
| Baltimore, MD 21201 | | | | $2.77 may be used as a tip credit. |
| | | | |
| (410) 767-2525 | | | | In Maryland the payroll laws covering |
| | | | mandatory rest or meal breaks are only that |
| (800) 492-5524 | | | | minors under 16 must have 30 minutes rest |
| | | | after five hours of work. |
| The State of Maryland taxable wage base for | | | | |
| unemployment purposes is wages up to | | | | Maryland statute requires that wage and hour |
| $8500.00. | | | | records be kept for a period of not less than |
| | | | three years. These records will normally |
| Maryland requires Magnetic media reporting of | | | | consist of at least the information required |
| quarterly wage reporting if the employer has | | | | under FLSA. |
| at least 100 employees that they are | | | | |
| reporting that quarter. | | | | The Maryland agency charged with enforcing |
| | | | Child Support Orders and laws is: |
| Unemployment records must be retained in | | | | |
| Maryland for a minimum period of five years. | | | | Child Support Enforcement Administration |
| This information generally includes: name; | | | | |
| social security number; dates of hire, rehire | | | | Department of Human Resources |
| and termination; wages by period; payroll pay | | | | |
| periods and pay dates; date and circumstances | | | | 311 W. Saratoga St. |
| of termination. | | | | |
| | | | Baltimore, MD 21201 |
| The Maryland State Agency charged with | | | | |
| enforcing the state wage and hour laws is: | | | | (800) 234-1528 |
| | | | |
| Department of Labor, Licensing and Regulation | | | | Maryland has the following provisions for |
| | | | child support deductions: |
| Division of Labor and Industry | | | | |
| | | | When to start Withholding? Immediately |
| 1100 N. Eutaw St., Rm. 607 | | | | after receipt of order. |
| | | | |
| Baltimore, MD 21201-2357 | | | | When to send Payment? Within 7 days of |
| | | | Payday. |
| (410) 767-2357 | | | | |
| | | | When to send Termination Notice? Within 10 |
| The minimum wage in Maryland is $5.15 per | | | | days of termination. |
| hour. | | | | |
| | | | Maximum Administrative Fee? $2 per |
| The general provision in Maryland concerning | | | | payment. |
| paying overtime in a non-FLSA covered | | | | |
| employer is one and one half times regular | | | | Withholding Limits? Federal Rules under |
| rate after 40-hour week. | | | | CCPA. |
| | | | |
| Maryland State new hire reporting | | | | Please note that this article is not updated |
| requirements are that every employer must | | | | for changes that can and will happen from |
| report every new hire and rehire. The | | | | time to time. |
| employer must report the federally required | | | | |
| elements of: | | | | Charles J. Read, CPA has been in the payroll, |
| | | | accounting and tax business for 30 years, the |
| Employee's namedate of hiremedical benefits | | | | last fifteen in private practice. |
| availabilitystarting wage | | | | |
| | | | Mr. Read is the author of "How to Start a New |
| Employee's UI ID | | | | Business." |
| | | | |
| Employee's address | | | | To find professional payroll service at a |
| | | | budget price go to a paperless payroll |
| Employee's social security number | | | | company. |
| | | | |
| Employer's name | | | | For a full service payroll bureau with CPA's |
| | | | on staff visit . |
| Employers address | | | | |
| | | | See an excerpt of Mr. Read's interviews from |
| Employer's Federal Employer Identification | | | | William Shatners "Heartbeat of America" |
| Number (EIN) | | | | television show on the web sites linked |
| | | | above. |