Maryland employer tax information
About Maryland employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Maryland, you must be registered with the Comptroller of Maryland and the Maryland Department of Labor, Licensing and Regulation.
You need your Maryland Central Registration Number (8 digits).
From Maryland Department of Labor, Licensing and Regulation, you need your:
Maryland Division of Unemployment Insurance Employer Number (10 digits)
The Maryland Department of Labor typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Maryland website or contact the MD Department of Labor directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Maryland payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
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Withholding Tax Payments (Form MW506): processes per pay run
The withholding tax payment made by Square Payroll serves as both the payment voucher and filing. This form will not appear under Tax Forms in Dashboard.
Annual Employer Withholding Reconciliation Return (MW508): processes annually
Wage and Tax Statement (W-2): processes annually
Division of Unemployment Insurance
Unemployment Insurance Quarterly Contribution Report Payment: processes quarterly
Unemployment Insurance Quarterly Wage and Contribution Report (DLLR/DUI 15/16): processes quarterly
State Directory of New Hires
New Hire Registry Report: processes per new employee
Make Maryland payroll tax payments
There are two options for making income tax payments.
To pay online, you can file and pay employer withholding tax online for free using bFile or by electronic funds transfer (EFT).
- To use the ACH Debit option, complete Sections A and B of Form EFT.
- To use the ACH Credit option, you must first contact your bank to determine if your bank offers ACH origination.
Once you have chosen either the ACH Debit or ACH Credit method and completed the required sections of Form EFT, either fax it to 410-260-6214 or mail it to:
EFT Program
PO Box 1509
Annapolis, MD 21404-1509
To pay by mail, prepare a check payable to Comptroller of Maryland. Do not send cash by mail. Use the envelope included with your preprinted payment voucher (Form MW506), which the Comptroller of Maryland sends to you by mail, to submit the voucher and payment and mail it to:
Comptroller of Maryland
Remittance Processing Center
Annapolis, Maryland 21411-0002
To make Maryland unemployment tax payments, you must be registered with the Maryland Department of Labor, Licensing and Regulation and have a Maryland Unemployment Insurance (UI) Employer Account Number. Registering with the Comptroller of Maryland will automatically register you with the Maryland DOL for your state unemployment insurance taxes.
To pay online:
- Go to Official Payments online.
- Select State Payments and select Maryland as your State or Territory and Payment Entity.
- Select Unemployment Insurance Payment Only as the Payment Type.
- Follow the prompts to enter your payment amount and method.
If you have questions, find help and contact information on the Division of Unemployment Insurance’s website.
To pay by mail, write a check. Be sure to include your Maryland Division of Unemployment Insurance Employer Number on the check payable to Maryland Unemployment Insurance Fund and mail it to:
Division of Unemployment Insurance
P.O. Box 17291
Baltimore, MD 21297-0365
Make Maryland payroll withholding tax filings
Annual reconciliation returns are due by January 31 for the preceding calendar year. In addition to the return, you must provide each of your employees with a federal Form W-2 summarizing the employee’s withholding for the year. Businesses on an annual payment and reporting schedule still must file an annual reconciliation in addition to the annual report. Employers with 25 or more employees must file electronically.
-To file online, use the bFile system.
- To file by mail, download Form MW508 from the Business Tax Forms page, and mail the return with any tax payment due to the address indicated on the form.
For questions about withholding tax payments, contact the Comptroller of Maryland at 410-260-7980 or at taxhelp@comp.state.md.us.
W-2s are due by January 31 for the preceding calendar year. When filing Form MW508, Annual Employer Withholding Reconciliation Return, you must also file W-2s for all employees working in Maryland.
-To file online, use the bFile system.
- To file by mail, include copies of the W-2s sent to all of your employees working in Maryland with your Form MW508, and mail the return to the address indicated on the form.
For questions about withholding tax payments, contact the Comptroller of Maryland at 410-260-7980 or at taxhelp@comp.state.md.us.
Make unemployment insurance tax filings in Maryland
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
- To file online, use the State of Maryland Department of Labor’s Webtax website. You can also use this site to file and pay your quarterly unemployment taxes.
- To file by mail, you can make your unemployment tax payments via check to the Maryland Unemployment Insurance Fund, Division of Unemployment
Insurance, P.O. Box 17291, Baltimore, MD 21297-0365. - To file by phone if you have $0 wages in the quarter, call 800-492-5524 and follow the instructions.
You must file quarterly returns even if no contributions are due. As long as you have an active unemployment insurance account, you must file reports every quarter by the due date. If you are liable for unemployment insurance taxes for any part of a calendar year, you are liable for the entire year and must file quarterly reports for the entire year.
If you believe your business no longer meets the qualifications for unemployment insurance tax, you must notify the Maryland Department of Labor, Division of Unemployment Insurance. In such cases, you must continue to file quarterly contribution and wage reports until you are notified that your account has been made inactive. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact Maryland Department of Labor at 800-492-5524 or visit Maryland Department of Labor website.
Amend duplicate tax filings in Maryland
The Comptroller of Maryland, Revenue Administration Division, allows you to correct any misreported payroll on your quarterly Form MW506 by submitting Form MW506a, Amended Employer Withholding Return. Here are some general guidelines for completing your adjusted return:
- Download Form MW506a.
- Obtain a copy of the Form MW506 that was originally filed. Use this to complete the “Previously reported” section of the amendment.
- Submit your completed return to the address listed on the form.
File your Form MW506a with the Comptroller of Maryland as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Comptroller of Maryland at 1-800-MD TAXES or visit the Comptroller of Maryland website.
The Comptroller of Maryland, Revenue Administration Division, allows you to correct any misreported payroll on your quarterly Form MW508 by submitting Form MW508a, Amended Annual Withholding Reconciliation Report. Here are some general guidelines for completing your adjusted return:
- Download Form MW508a.
- Obtain a copy of the Form MW508a that was originally filed. Use this to complete the “Previously reported” section of the amendment.
- Submit your completed return to the address listed on the form.
File your Form MW508a with the Comptroller of Maryland as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Comptroller of Maryland at 1-800-MD TAXES or visit the Comptroller of Maryland website.
The Maryland Division of Unemployment Insurance allows you to correct any misreported payroll on your Form DLLR/DUI 15/16 by submitting Form DLLR/DUI 21, Request for Wage Adjustment. Here are some general guidelines for completing your adjusted return:
- Once you complete the Quarterly Contribution & Employment Report online and have received the confirmation number you cannot return to the online form and correct any errors.
- Download Form DLLR/DUI 21.
- Send your completed return via email to dluiacctsrec-dllr@maryland.gov.
- Include the employee name, Social Security number, wage amount, your name, telephone number, the company name, and your Maryland Account Number. Your request will be confirmed via return email.
File your Unemployment Insurance Quarterly Contribution Report with the Maryland Division of Unemployment Insurance as soon as possible to avoid unnecessary penalties or fees from underreporting your wages and taxes. If you have any questions, contact the Maryland Division of Unemployment Insurance at 1-800-492-5524 or visit the Maryland Division of Unemployment Insurance website.
Register as a new employer in Maryland
Register on the Comptroller of Maryland website. Allow approximately 5-7 business days to receive your Central Registration Number.
If you need to receive your Central Registration Number more urgently or wish to speak with the Comptroller’s office, call 800-MD-TAXES.
The Combined Registration with the Comptroller of Maryland will automatically register you with the Maryland Department of Labor, Licensing and Regulation for state unemployment insurance taxes or register an unemployment insurance tax account separately.
Find your Maryland tax ID numbers and rates
Look up your Central Registration Number online by logging in to the Comptroller of Maryland website. Locate your 8-digit Central Registration Number on any previously filed Annual Reconciliation Return (Form MW-508).
For assistance, call the Comptroller’s office at 800-MD-TAXES.
Locate your ten-digit Unemployment Insurance Employer Number on any previously filed quarterly report (Form DLLR/DUI 15/16).
For assistance, call the Maryland Department of Labor, Licensing and Regulation at 410-767-2413.
Look up your UI tax rate on the Maryland Department of Labor website.
For assistance, call the Maryland Department of Labor, Licensing and Regulation at 410-767-2413.
You are responsible for ensuring Square Payroll has the correct tax rate on file for your business. If you need to update your rate, you can from your Tax info in your Square Dashboard.
Payroll reciprocal state agreements
A reciprocal agreement is an agreement between two states that allows employees that work in one state but live in another to request exemption from tax withholding in their employment state. This means that the employee would not have income tax withheld from their paycheck for their employment state; they would only pay income taxes to the state where they live.
A Non-Residency Certificate (or statement or declaration), is used to declare that an employee is a resident of a state which has a reciprocal agreement with their work state and therefore chooses to be exempt from withholding income tax in their work state. A non-resident employee qualifying for this exemption must complete and file this declaration with his or her employer as authorization for the employer to stop withholding state income taxes where the employee works. Employers should keep the non-residency certificate on file.
Maryland has reciprocal agreements with:
District of Columbia
Pennsylvania
Virginia
West Virginia
Non-resident employees should file Form MW 507.