Maryland New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an Employer Identification number (also known as an EIN or FEIN) if you don’t already have one. The simplest (and preferred way) to apply for an EIN with the IRS is online. There is no cost to apply for an EIN.
- To read more about applying for EINs, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
- Although it is not required, we recommend that you register for this federal tax paying system. You can easily register online. This account will be helpful for you to make tax payments online or view whatever tax filings have been made on your behalf by Patriot.
- To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of Maryland Tax Accounts:
- Maryland new employers can register online with the Comptroller of Maryland for both your income withholding tax account, also known as state income tax (SIT), and your state unemployment insurance (SUI) tax account.
- Register for bFile for online access to your withholding tax account.
- Maryland’s 23 counties and Baltimore City levy local income taxes that are collected on the state income tax retun as a convenience for local governments.
- For more information, visit the Comptroller of Maryland website about employer taxes and the Maryland Department of Labor, Licensing and Regulation for answers to unemployment insurance questions.
- The Maryland new employer SUTA rate is 2.3% for 2023. **An exception to this is new construction employers headquartered in another state will use 5.10% in 2023. For more information, visit the Division of Unemployment Insurance.
- You will be assigned an unemployment tax assessment (SUTA) rate every year based on your industry and experience rating.
- For more information about state unemployment tax, check out our article, “What Is SUTA Tax?“
Setting Up Your New Employee:
- Fill out Form I-9. This is a two-part form to be filled out by the employee and the employer. To learn more, read, “Form I-9 In a Nutshell”
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate, for federal income taxes (FIT). For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Have your new employee fill out Form MW507 Maryland Employee’s Withholding Exemption Certificate for state income taxes (SIT).
- Employers are required to report all new employees within 20 days of hire or rehire. You can report new hires online with the Maryland State Directory of New Hires.
- For more information, read, “What Is New Hire Reporting?”
- The 2023 minimum wage is $13.25 per hour for employers with 15 or more employees. The minimum wage for employers with 14 or fewer employees is $12.80 per hour. For more information, visit the Department of Labor, Licensing and Regulation.
- Please note, if there is a locality that has a different minimum wage, you are required to follow the more stringent law.
- You need to post the minimum wage poster for Maryland where your employees can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
Disclaimer: This is not an all-inclusive list for new employers. Please check with the federal and state government for additional requirements for employers.
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