Maryland payroll tax and registration guide

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

• State Employer Identification Number and state/local tax IDs
• Tax rates - State tax offices set these rates based on the type, age, and size of your business
• TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf

This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.

Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.

See what information you need to provide OnPay, and what taxes and filings OnPay handles for Maryland Employers.

• Information OnPay needs from you

  Use this checklist to make sure you’ve covered everything required to set up your account as a Maryland employer, so OnPay can accurately file and pay taxes on your behalf:
  
  

  All Maryland employers	What is this?
  Make sure your business is registered with the Comptroller of Maryland	Allows your business to file and pay taxes in Maryland More info >
  Make sure your business is registered with the Maryland Department of Labor	Allows your business to pay required unemployment insurance in Maryland More info >
  Provide OnPay with your Maryland Central Registration Number (Tax ID) and deposit schedule	The 8-digit employer identification number issued by the Comptroller of Maryland More info >
  Provide OnPay with your Maryland Unemployment ID	A 10-digit number unique to your account with the Maryland Department of Labor More info >
  Provide OnPay with your Maryland Unemployment (SUI) Rate	A tax rate you receive annually from the Maryland Department of Labor More info >
  Authorize OnPay as a Third Party Administrator	For OnPay to be able to file and pay taxes on behalf of your business, you will need to submit a Power of Attorney form. More info >

• Taxes and filings OnPay handles for Maryland Employers

  Withholding Tax

  Form MW506	Employer Return of Income Tax Withheld	- Monthly & Quarterly
  Form MW506M	Employer's Return of Income Tax Withheld for Accelerated Filers	- Accelerated
  Form MW508	Annual Employer Withholding Reconciliation Report	- Annual
  State W-2 (Filing)	Wage and Tax Statement	- Annual

  Unemployment Insurance Tax

  MDUI151	Maryland Unemployment Insurance Quarterly Employment Report	- Quarterly
  MDUI161	Continuation Maryland Unemployment Insurance Quarterly Employment Report	- Quarterly

  Other

  New Hire Report

  Maryland New Hire Report

  - As required

Where you can find the tax account numbers you need

If you are an existing employer who has previously run payroll in Maryland, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.

If you are a new employer in Maryland, you will need to register your business with the Comptroller of Maryland and Maryland Department of Labor. This must be completed for OnPay to be able to file and pay your Maryland taxes.

Maryland Central Registration Number (Tax ID)

Existing Maryland Employer: 

You can find your Tax ID on notices received from the Maryland Comptroller. If you cannot locate this number, please call the Comptroller’s office: 800-MD-TAXES (800-638-2937).

New Maryland Employer: Register with the Comptroller of Maryland 

• Register with the Comptroller of Maryland online
• The online registration process can take about 7 days for you to receive your Central Registration Number
• After 5 days, you can also call (800) 638-2937 or email taxhelp@comp.state.md.us to receive your CRN sooner

Unemployment Account Number, PIN, and Tax Rate

Existing Maryland Employer: 

• You can find your Unemployment Account Number on any previously filed quarterly report
• You'll find your Unemployment Tax Rate in the “Contribution Rate” box on the Unemployment Insurance Tax Rate Notice you receive from the Maryland Department of Labor. You can also find your Maryland unemployment tax rate online. Employers typically have a rate between 0.3% to 7.5%, with a wage base of $8,500
• If you cannot locate this information, call the Maryland Department of Labor: (410)-767-2412
• Note: If you've created PIN for your Maryland Unemployment account, you'll need to submit a request and provide it to us (you'll need your OnPay login credentials

New Maryland Employer: Register with Maryland Tax Connect

• You will automatically be registered with the Maryland Department of Labor when you complete your Tax Connect registration online for the Comptroller of Maryland
• You'll receive your account number and tax rate instantly once you have completed the online registration
• New employers are typically assigned a rate of 2.6% (or 7.0% for construction companies), with a wage base of $8,500

Paying employees in other states?

If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.

Other great resources

• State-by-state tax agency websites
  
• Hiring Your First Employee the Right Way: A Simple Guide
• What is unemployment insurance and how does it work?
• What is FUTA? 2020 Federal Unemployment Tax Rates and Info

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