Paying Employees in Maryland

Maryland 2021 Minimum Wage:

  • $11.75 per hour (employers with 15 or more employees)
  • $11.60 per hour (employers with 14 or fewer employees)
  • $3.63 for tipped employees

Maryland Overtime Rules: 1.5 x’s the regular rate for all hours worked in excess of 40 in a workweek

Maryland Paystub Requirements:

  • A statement of the gross earnings of the employee and deductions from those gross earnings

How often do you have to pay employees in Maryland?

  • Employees must be paid at least twice per month with an exception for executive, professional and administrative employees.

When is an employee’s final check due in Maryland?

  • Voluntary resignation – wages are due on the next scheduled payday.
  • Involuntary termination – wages are due on the next scheduled payday.

 

Maryland Withholding Tax 

Maryland Withholding Tax Registration

Wages Subject to Maryland Withholding

  • All wages earned by Maryland residents is subject to Maryland withholding
  • All wages earned by nonresidents in Maryland is subject to Maryland withholding, with the exception of residents of reciprocal states.

Maryland Employee’s Withholding Exemption Certificate

Reciprocity

  • Pennsylvania, Virginia, Washington DC and West Virginia

Maryland Withholding Tax Due Dates

  • Due within three business days of pay date if withholding is $15000 or more for preceding year
  • Due quarterly on the 15th of the month following quarter end if less than $700 per quarter
  • Due monthly on the 15th day of the month following reporting period if more than $700 per quarter
  • Due annually by Jan 31 if less than $250 per year

 

Maryland Unemployment Tax

Maryland Unemployment Tax Registration

Maryland Unemployment Tax Employer Liabilities

  • New employer rate: 2.6%
  • 2021 Wage Base: $8,500

Maryland Unemployment Tax Due Dates

  • Return and payment are due quarterly on the last day of the month following the end of the reporting period

 

Maryland New Hire Reporting

 

Maryland Child Support

  • Use the Maryland Department of Human Services website to remit payments online
  • Maryland State Disbursement Unit
    PO Box 17396
    Baltimore, MD 21297-1396
  • Phone: (855) 853-8289
  • Fax: (844) 324-3857
  • E-mail: mdecsupport@smimail.net

 

Additional Resources