Maryland payroll tax and registration guide

Why is this important?

The following information requests and registration instructions must be completed before you can use OnPay to run payroll. To maintain compliance with state payroll tax regulations, you will need to provide:

Your state Employer Identification Number and state tax IDs - You must be registered with all state and local agencies listed in this article
Tax rates - State and local tax offices determine 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.

Note: 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.

Let Middesk handle your state tax registrations

Want help registering your business with state agencies? We've partnered with Middesk to make it simple and easy for you to stay compliant in your state — and every state — when hiring employees.

Register with state agencies and get the tax IDs you need within minutes
Manage all your government accounts in one place using Middesk's intuitive platform
Stay compliant as you grow by managing agency mail and notices from your Middesk dashboard
Foreign Qualify with the Secretary of State to create payroll tax accounts

Learn more about Middesk

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 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 >

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 W-2 (Filing)	Wage and Tax Statement	Annual
Unemployment	MDUI151	Maryland Unemployment Insurance Quarterly Employment Report	Quarterly
Unemployment	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
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 look it up online here. Employers typically have a rate between 0.3% to 7.5%, 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 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.

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