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