Articles in this section

Maryland payroll tax and registration guide

Updated August 15, 2024

This article will cover:

Why is this important?

The following information requests and registration instructions are required before you can use a payroll provider to run payroll. This is in compliance with state payroll tax regulations. Without this information, OnPay is unable to file or deposit any tax payments for your company, and will not be responsible for any resulting penalties or interest. Note: If this isn't the only state where you have employees, there will be a separate guide like this one for each state where you hire and pay workers. 

Let Middesk handle your state tax registrations (and more)

If you'd like help, our partner Middesk makes hiring employees and staying compliant with every state agency simple and easy.

  • Register with every state agency to get the tax IDs you need within minutes
  • Stay compliant as you grow by managing agency mail and notices in your dashboard
  • Manage your government accounts in one place on Middesk's intuitive platform
  • 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

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 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 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

v7.24