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