Payroll Maryland, Unique Aspects of Maryland Payroll Law and Practice

The Maryland State Agency that oversees theEmployee's social security number Employer's name
collection and reporting of State income taxesEmployers address Employer's Federal Employer
deducted from payroll checks is: Comptroller of theIdentification Number (EIN) This information must be
Treasury Revenue Administration Div. Income Taxreported within 20 days of the hiring or rehiring. The
Bldg. Annapolis, MD 21404-0466 (410) 260-7150 (800)information can be sent as a W4 or equivalent by
638-2937 Maryland requires that you use Marylandmail, fax or electronically. There is a $20 penalty for a
form "MW507, Employee's Maryland Withholdinglate report in Maryland and $500 for conspiracy. The
Exemption Certificate" instead of a Federal W-4 FormMaryland new hire-reporting agency can be reached
for Maryland State Income Tax Withholding. Not allat 888-634-4737 or 410-347-9911or on the web at
states allow salary reductions made under SectionMaryland does not allow compulsory direct deposit
125 cafeteria plans or 401(k) to be treated in theMaryland requires the following information on an
same manner as the IRS code allows. In Marylandemployee's pay stub: Gross and Net Earnings itemized
cafeteria plans are not taxable for income taxdeductions Maryland requires that employee be paid
calculation; not taxable for unemployment insuranceno less often than semimonthly, biweekly; less
purposes. 401(k) plan deferrals are not taxable forfrequently for FLSA-exempt employees. Maryland
income taxes; taxable for unemployment purposes. Inpayroll law requires that involuntarily terminated
Maryland supplemental wages are taxed at a 4.75%employees must be paid their final pay by their next
plus county rate. You must file your Maryland Stateregular payday and that voluntarily terminated
W-2s by magnetic media if you are required to fileemployees must be paid their final pay by the next
your federal W-2s by magnetic media. The Marylandregular payday or by mail if employee requests it.
State Unemployment Insurance Agency is: Division ofThere is no provision in Maryland law concerning
Employment and Training 1100 N. Eutaw St. Baltimore,paying deceased employees. Escheat laws in Maryland
MD 21201 (410) 767-2525 (800) 492-5524 The Staterequire that unclaimed wages be paid over to the
of Maryland taxable wage base for unemploymentstate after three years. The employer is further
purposes is wages up to $8500.00. Maryland requiresrequired in Maryland to keep a record of the wages
Magnetic media reporting of quarterly wage reportingabandoned and turned over to the state for a period
if the employer has at least 100 employees that theyof 10 years. Maryland payroll law mandates no more
are reporting that quarter. Unemployment recordsthan $2.77 may be used as a tip credit. In Maryland
must be retained in Maryland for a minimum period ofthe payroll laws covering mandatory rest or meal
five years. This information generally includes: name;breaks are only that minors under 16 must have 30
social security number; dates of hire, rehire andminutes rest after five hours of work. Maryland
termination; wages by period; payroll pay periods andstatute requires that wage and hour records be kept
pay dates; date and circumstances of termination.for a period of not less than three years. These
The Maryland State Agency charged with enforcingrecords will normally consist of at least the
the state wage and hour laws is: Department ofinformation required under FLSA. The Maryland
Labor, Licensing and Regulation Division of Labor andagency charged with enforcing Child Support Orders
Industry 1100 N. Eutaw St., Rm. 607 Baltimore, MDand laws is: Child Support Enforcement Administration
21201-2357 (410) 767-2357 The minimum wage inDepartment of Human Resources 311 W. Saratoga
Maryland is $5.15 per hour. The general provision inSt. Baltimore, MD 21201 (800) 234-1528 Maryland has
Maryland concerning paying overtime in a non-FLSAthe following provisions for child support deductions:
covered employer is one and one half times regularWhen to start Withholding? Immediately after receipt
rate after 40-hour week. Maryland State new hireof order. When to send Payment? Within 7 days of
reporting requirements are that every employer mustPayday. When to send Termination Notice? Within 10
report every new hire and rehire. The employer mustdays of termination. Maximum Administrative Fee? $2
report the federally required elements of: Employee'sper payment. Withholding Limits? Federal Rules under
name date of hire medical benefits availability startingCCPA. Please note that this article is not updated for
wage Employee's UI ID Employee's addresschanges that can and will happen from time to time.