Effective October 1, 2024, employers paying employees in Maryland must provide specific pay information on each pay stub. When you process payroll in OnPay, this information is automatically included on pay stubs, and your employees can access their pay statements in the OnPay mobile app, or in their online employee portal.
What we'll cover
What's required
When paying employees in Maryland, the state requires employers to provide pay statements that detail the following information:
- Employer's name as registered with the state (not a DBA)
- Employer's address as registered with the state
- Employer's telephone number
- Date of payment
- Pay period start and end date
- Total hours worked in the pay period (non-exempt employees)
- Rate(s) of pay*
- Basis or bases of pay**
- Pieces completed (if applicable)**
- Gross pay earned
- Net pay earned
- Amount and name of all wage deductions
*Statements must include all pay rates that apply to the employee’s wages for the pay period.
**If an employee is paid on a piece-rate basis, pay statements must also include the applicable piece rates and the number of pieces completed at each rate.
Company information
Company information can be viewed and updated in Company Profile.
Do not "Use DBA"
The "Legal Name" in Company Profile should be the same name registered with the state of Maryland.
Do not use a "Does Business As" name when paying employees in Maryland.
"Use Mail Address" if needed
The company legal address registered with OnPay will appear on pay statements unless you use a mail address.
If your company address is different from the address registered with the state of Maryland, select Yes under "Use Mail Address", and enter the address that should appear on all pay statements.
Company Phone Number
This must be the company's main phone number as registered with the state.
Are you paying employees a piece rate?
If you pay employees by piece rate, there are a few additional steps you need to take.
Create a "Piece Rate" pay item
Go to Company, then Pay Items, and look for an unused "Custom" field.
Click to update the name to "Piece Rate" or something similar.
Decide whether this pay item should operate as an hourly or non-hourly pay type.*
*What's the difference between selecting "Hourly" and "Non-Hourly"?
- Hourly - When processing payroll, pieces can be entered in the "hours" field to calculate total pay for pieces completed for each employee. This information is then displayed on pay statements. Note: This means turning off OnPay's ability to monitor minimum wage compliance.
- Non-Hourly - When processing payroll, total pieces completed and total piece rate pay must be calculated and entered manually in the "Piece Rate" pay type for each employee.
- Both workflows are covered later in this article.
Add piece rate pay to employees
Go to Compensation in the profile of each employee paid by piece rate.
Click the blue (+) to add a pay type.
Search for and select your piece rate pay type.
Click Add.
Enter the amount this employee is paid per-piece in the field. This piece rate will now be available for this employee when running payroll.
Hourly and non-hourly piece rate payroll workflows
Piece rate pay can be added to employees while processing a pay run. For this example, we have an employee who completed 1,000 pieces at $0.50 per piece.
Click the edit pencil for the employee's wages.
Hourly Rate
There are two ways you can process piece rate pay in OnPay. We'll start with Hourly Rate.
With the hourly piece rate pay item added, you can enter the piece count in the "Regular (hr)" field. OnPay will calculate the employee's piece rate by the number entered, and display the total under "Amount".
If using "hourly" piece rate pay types:
Using hour-units to represent pieces will prevent OnPay from monitoring your compliance with federal, state, and local minimum wage requirements.
Non-hourly (Flat) Rate
Another way to include piece rate pay information on pay statements is with a Flat Rate pay type.
A flat Rate pay type will have an override switch, which allows you to enter a dollar amount to be paid.
Because this employee completed 1,000 pieces at $0.50 per piece, the "Override rate" is $500.
Adding pay information to the pay statement
Because this is a flat rate of pay, an extra step is needed to add the required pay information on their statement.
Click More.
Click Memo/Note.
Write out the number of pieces completed, and the rate per piece in the "Check Memo" field. This information will appear on the pay stub and digital pay statements.
Where employees can find their pay statements
Employees can access their pay stubs in the OnPay app, or by logging into their OnPay employee portal. Employees have lifetime access to these statements.
IMPORTANT: Penalty for non-compliance
Per Senate Bill 38
Employers that fail to comply may be subject to an administrative penalty of up to $500 per affected employee.
v7.24
Read Senate Bill 38