Updated June 17, 2022
This article will cover:
- What information OnPay needs from you
- What state and local taxes and filings OnPay handles for Maryland employers
- Where you can find the tax account numbers needed
- How to authorize OnPay as a Third Party Administrator in Maryland
Why is this important?
For employers who pay employees in Maryland, use this guide to learn what’s required to start running payroll while keeping compliant with state payroll tax regulations. Without this information, OnPay will be unable to file or deposit any Maryland tax payments for your company. Any penalties and interest that accrue from missed tax payments will be your company’s responsibility.
What 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:
✔ |
To do: |
What is this? |
Make sure your business is registered with the Comptroller of Maryland |
Allows your business to file and pay taxes in Maryland |
|
Make sure your business is registered with the Maryland Department of Labor |
Allows your business to pay required unemployment insurance in Maryland |
|
Provide OnPay with your Maryland Central Registration Number (Tax ID) |
The 8-digit employer identification number issued by the Comptroller of Maryland |
|
Provide OnPay with your Maryland Unemployment ID |
A 10-digit number unique to your account with the Maryland Department of Labor |
|
Provide OnPay with your Maryland Unemployment (SUI) Rate |
A tax rate you receive annually from the Maryland Department of Labor |
|
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. |
What state and local taxes and filings OnPay handles for Maryland employers
OnPay handles the filing of all state and local taxes for businesses in Maryland, including:
Type of Tax |
Form ID |
Form Name |
Frequency |
Withholding |
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 W2 (Filing) |
Wage and Tax Statement |
Annual |
|
Unemployment |
MDUI151 |
Maryland Unemployment Insurance Quarterly Employment Report |
Quarterly |
MDUI161 |
Continuation Maryland Unemployment Insurance Quarterly Employment Report |
Quarterly |
|
Other |
New Hire Report (Filing) |
Maryland New Hire Report |
As required |
Where you can find the tax account numbers needed
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. (Click “Begin registration” at the button of the page and submit the required information.
- 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 (Form DLLR/DUI 15/16).
- You find your Unemployment Tax Rate in the “Contribution Rate” box on the Experience Rate Notice you receive from the Maryland Department of Labor. You can also look it up online here. Employers typically have a rate of 2.3%, with a wage base of $8,500.
- If you have created an MD unemployment PIN, please provide OnPay with this PIN at hello@onpay.com.
- If you cannot locate this information, call the Maryland Department of Labor: (410)-767-2412.
New Maryland Employer: Register with the Maryland Department of Labor
- You will automatically be registered with the Maryland Department of Labor when you complete your 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.
How to authorize OnPay as a Third Party Administrator in Maryland
OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax rates, and filing financial reports. To do this effectively, you will need to add OnPay as your Third Party Agent and grant us Power of Attorney.
Third Party Administrator access
- Download and complete this POA form
- Log into your BEACON account
- Under "Your Options," click Account Maintenance
- Select Agent Assignment
- Select Add Agent.
- Search for our agent ID: MD8P2M and click Search
- Click Select POA to upload your completed POA form
- Assign the following roles:
- Wage Submission
- Payment Submission
- Set the Access Begin Date for the date that you joined OnPay
- Click Save
Power of Attorney
You will also need to grant us Power of Attorney and Reporting Agent Authorization for the Comptroller of Maryland by following the instructions in this article.
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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