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