withholding guide

MARYLAND EMpLoYERWithhoLDiNg guiDE

peter FranchotComptroller

www.marylandtaxes.com

this guide is effective January 2015 and includes local income tax rates. these rates were current at the time this guide was developed. the Maryland Legislature may change this tax rate when in session. During this time, please

check our Web site at www.marylandtaxes.com for any changes.

Comptroller of Maryland110 Carroll Street

Annapolis, MD 21411

Call 410-260-7980 from Central Maryland, or, 800-638-2937 from elsewhere

• Employersareresponsibleforensuringthattaxreturnsarefiledanddepositsandpaymentsaremade,evenifthe employer contracts with a third party to performtheseacts.Theemployerremainsresponsibleifthethirdpartyfailstoperformanyrequiredaction.Ifthethirdparty fails tomake the taxpayments, theComptrollermay assess penalties and interest on the employer’saccount. The employer is liable for all taxes, penaltiesand interest due. The employer may also be heldpersonallyliableforcertainunpaidtaxes.Toverifythatthe appropriate returns have been filed and paymentshave been made, you may contact the Comptroller’sOfficeat1-800-638-2937orfromCentralMaryland410-260-7980.

• Quarterlywithholding tax returns are dueon the15thday of themonth that follows the calendar quarter inwhich that income tax was withheld. Withholding taxratesforgamblingwinningshavechanged.Seepage5fordetails.

• A spouse whose wages are exempt from MarylandincometaxundertheMilitarySpousesResidencyReliefActmayclaimanexemptionfromMarylandwithholdingtax.Seepage6fordetails.

• Employers or payors of payments subject toMarylandwithholding taxes are required to submit their W-2/MW508 data electronically if they have 25 or moreemployees.TheelectronicfilemustbeamodifiedEFW2format text file that may be either uploaded throughbFile, or copied to a CD and sent to the RevenueAdministrationDivision. A PDF or Excel spreadsheet isnotacceptable.Anotheracceptableelectronicoption istousethebFilewebsiteandmanuallykeyineachW-2.Seepage8fordetails.

•We do not automatically send paper withholding taxcouponstobusinessesthathavenotfiledelectronicallyinthepast.Westronglyencourageallbusinessestofiletheir withholding tax returns and payments and theirannual MW508 reconciliation electronically wheneverpossible,byusingourfreebFileonlineservice.bFile issafe and secure and provides an acknowledgement offiling.

• You may file and pay your withholding return via thefollowingthreeelectronicmethods:

– bFile - File Withholding Returns (MW506) – Youmay file and pay your employer withholding taxusing electronic funds withdrawal (direct debit) aswell as file your zero (0) balance withholding taxreturns.bFileislocatedatwww.marylandtaxes.comunderOnlineServices.

– Electronic Funds transfer (EFt) -Call410-260-7980toregister.

– Credit Card-Foralternativemethodsofpayment,such as a credit card, visit our website atwww.marylandtaxes.com.

NotE-Ifyouuseanyofthesefilingoptions,DOnOTfileapaperreturn.

•Be sure your Central Registration Number andphonenumberappearonallformsandcorrespondence.

For questions concerning thewithholding ofMaryland andlocal taxes, please e-mail your questions to [email protected] or call one of our Taxpayer Servicerepresentativesat1-800-638-2937orfromCentralMaryland410-260-7980.

Reminders

Maryland Employer Withholding Forms

how to use this Employer Withholding guideThe instructions in this guide will provide you with theinformationyouneedtocomplywiththerequirementsforwithholdingMarylandincometaxasrequiredbylaw.

These instructions include the percentage formulas todetermine the amount of income tax to withhold fromemployees’wages.

Thewithholding tablesarenotlocatedinthisguide.Theycan be found atwww.marylandtaxes.com or if you donothaveaccesstotheInternet,pleasecalltheformslineat410-260-7951.

Wehopethisguidewillprovideyouwithalltheinformationyou need. However, if you need additional assistance,pleasefeelfreetocontactus:

Comptroller of MarylandRevenue Administration Division110 Carroll StreetAnnapolis, Maryland 21411-0001410-260-7980800-638-2937www.marylandtaxes.com

MW506 Employer’sReturnofIncomeTaxWithheld

MW506A Employer’sReturnofIncomeTaxWithheld-Amended

MW506AM Employer'sReturnofIncomeTaxWithheldforAcceleratedFilers-Amended

MW506M Employer'sReturnofIncomeTaxWithheldforAcceleratedFilers

MW507 Employee'sMarylandWithholdingExemptionCertificate

MW507M ExemptionfromMarylandWithholdingTaxforaQualifiedCivilianSpouseofaU.S.ArmedForcesServicemember

MW507p Annuity,SickPayandRetirementDistributionRequestforMarylandIncomeTaxWithholding

MW508 AnnualEmployerWithholdingReconciliationReturn

MW508A AnnualEmployerWithholdingReconciliationReturn-Amended

MW508CR BusinessIncomeTaxCredits-Tobeusedbynon-profit501(c)(3)organizationsonly.

MARYLAnDEMPLOYERWITHHOLDInG2

tABLE oF CoNtENtSPage

1. iNtRoDuCtioN. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42. hoW thE LAW AppLiES Employers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 AllEmployersRegisterwithMaryland. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 Employees'SocialSecuritynumbers. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 RecordstoKeep. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 PenaltiesforFailingtoComply. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 CivilandCriminalPenalties. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43. pAYMENtS SuBJECt to WithhoLDiNg TaxableWages. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 nonresidentEmployeesSubjecttoWithholding. . . . . . . . . . . . . . . . . . . . . . . . . . 5 Lottery&GamblingWinningsSubjecttoWithholding. . . . . . . . . . . . . . . . . . . . . . 5 ExemptionCertificate. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 WithholdingforAnnuity,SickPayandRetirementDistributions. . . . . . . . . . . . . . . 6 MandatoryWithholdingonRetirementDistributions. . . . . . . . . . . . . . . . . . . . . . . 6 Tax-exemptorganizations. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64. DEtERMiNiNg thE AMouNt to BE WithhELD HowtoUsethePercentageCharts. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65. hoW to FiLE bFile. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 YearEndReconciliation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 MagneticMediaReporting. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

names,AddressandFederalEmployerIdentificationnumberChangesandFinalReturns. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

Amendments. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 MW506A,MW506AM. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 MW508A . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 WhereAmendedReturnsaretobeSent. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8SpECiAL WithhoLDiNg iNFoRMAtioN FoR SiNgLES AND StuDENtS oNLY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8iN thE EVENt oF A DiSAStER oR EMERgENCY . . . . . . . . . . . . . . . . . . . . . . . . . . . 9pERCENtAgE iNCoME tAX WithhoLDiNg RAtES MarylandResidentEmployeeswhoworkinDelaware. . . . . . . . . . . . . . . . . . . . . 10 1.25PercentLocalIncomeTaxandnonresidents. . . . . . . . . . . . . . . . . . . . . . . . 12 2.25PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14 2.40PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16 2.50PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18 2.60PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 2.65PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22 2.80PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 2.85PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 26 2.90PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 28 3.00PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 3.05PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 3.10PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 3.15PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36 3.20PercentLocalIncomeTax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38

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1. iNtRoDuCtioNThe withholding of Maryland income tax is a part of thestate’s “pay-as-you-go” plan of income tax collectionadopted by the 1955 session of the Maryland GeneralAssembly.Theprovisionsareset forth in theTax-GeneralArticleoftheAnnotatedCodeofMaryland.Thelawaidsinthepropercollectionoftaxesrequiredtobereportedbyindividualswithtaxableincome.Generallyspeaking,thestate’ssystemresemblesthefederalwithholdingplans.Thedistinctivedifferencesbetweenthestateandfederalsystemsareexplainedinthisguide.Withholding tax is not an additional tax, but merely acollectiondevice.Itspurposeistocollecttaxatthesource,asthewagesareearned,insteadofcollectingthetaxayearafterthewageswereearned.Underthelaw,thesumswithheldmustberecordedbytheemployer or payor in a ledger account to clearly indicatetheamountoftaxwithheldandthatthetaxwithheldisthepropertyoftheStateofMaryland.Funds set aside by the employer or payor from taxeswithheldaredeemedbylawtobeheldintrustfortheuseandbenefitoftheStateofMaryland.AnyemployerorpayorwhonegligentlyfailstoeitherwithholdtherequiredtaxortopayittotheComptroller,orboth,isheldpersonallyandindividuallyliableforallmoniesinvolved.Iftheemployerisacorporateentity,thepersonal liabilityextends and is applicable to the officer or agent of thecorporation whose duty it is to withhold the tax andtransmitittotheComptrollerasrequiredbylaw.To help keep accurate employer records, every employersubject to thewithholdingprovisions of theMaryland lawis assigned a Central Registration number (CRn) (this isyoureight-digitMarylandtaxaccountnumber).TheFederalEmployerIdentificationnumber(FEIn)assignedtoyoubytheIRSforfederalpurposesalsoisusedforrecord-keepingpurposes. If you do not have a FEInwhen you apply foraMarylandaccount,wewillassignyouaCRn.WhenyoureceiveyourFEIn,youshouldnotifyusimmediately.2. hoW thE LAW AppLiESEmployersGenerally,anemployerisapersonororganization,subjectto the jurisdiction of Maryland, for whom an individualperformsaserviceasanemployee.AnemployerwhoisnotrequiredbylawtowithholdMarylandincome tax may withhold Maryland income tax througha voluntary arrangement with the employees or payees,provided that the employer registers with the RevenueAdministrationDivision.ThisarrangementmustconformtotheMarylandwithholdingandpaymentrequirements.All employers must register with MarylandAll employers are required to register with the RevenueAdministrationDivisionbyfilingaCombined Registration Application Form CRA. You also can register online atwww.marylandtaxes.com.TheemployerwillbeassignedaCRnthatwillbeusedforemployerincometaxwithholdingaswellasmostotherMarylandbusinesstaxes.Donotwaituntilwithholdingpaymentsareduetoregisterasanemployer.ContacttheRevenueAdministrationDivision,Annapolis,Maryland21411(410-260-7980)assoonasyouknowyouwillbepayingwagesandwithholdingtaxes.YoushouldhaveonlyoneCRnforwithholdingpurposes.Ifyouhavemorethanone,notifytheRevenueAdministrationDivision.If you acquire another employer’s business, do not use the number assigned to that business. Request aCombined Registration Application Form CRA from the

RevenueAdministrationDivisionorregisteronlineatwww.marylandtaxes.com.YoumustincludeyourCRnandFEIn,ifavailable,onallforms,attachmentsandcorrespondenceyousendtotheRevenueAdministrationDivision.For withholding purposes “employee” means:• An individual, whether a resident or nonresident ofMaryland, who performs any service in Maryland forwages.

• AresidentofMarylandwhoperformsanyserviceoutsidethisstateforwages.

• An officer, employee, or elected official of the UnitedStates,Maryland,oranyotherstateorterritory,oranypoliticalsubdivisionthereof,ortheDistrictofColumbia,oranyagencyorinstrumentalityofanyoftheabove.

• Anofficerofacorporation.Employees' Social Security numbersYoumustrecordthenameandaddressofeachemployeeorpayeeexactlyasitappearsontheSocialSecuritycard.If a new employee does not have a Social Security card,have the employee obtain one at any Social SecurityAdministrationoffice.Records to keepYou are required to keep all records pertaining to thepayment of wages and the deduction and withholding ofMaryland income tax. These records must be availablefor inspectionby theRevenueAdministrationDivisionandinclude:• The amounts and dates of all wage payments to eachemployee.

• The amounts and dates for all Maryland income taxeswithheldfromwagepaymentstoeachemployee.

•Thename,address,SocialSecuritynumber,andperiodofemploymentforeachemployee.

• Eachemployee’sexemptioncertificate.•Your identification number, the amount of Marylandincome tax withheld and paid to the Comptroller ofMaryland,andthedatespaymentsweremade.

Allrecordsshouldberetainedforaperiodofatleastthreeyearsafter thedate the tax towhich they relatebecamedueorthedatethetaxwaspaid,whicheverislater.penalties for failing to complyAny employer who fails to file returns or remit amountscollectedasrequiredissubjecttoapenaltynottoexceed25%oftheunpaidtax.If anemployerpays tax, interest or penaltyby check (orotherinstrument)thatisnothonoredbythebankonwhichitisdrawn,theemployershallbeassessedaservicechargeof$30.Remember! the money you withhold from your employees is held in trust for the State of Maryland.

Civil and Criminal penaltiesCivil penalties»SuspensionorrevocationofallbusinesslicensesissuedbytheStatetotheemployerforwillfulfailuretowithholdorpayincometaxtotheComptroller.

» Imposition of a $50 penalty for each violation forwillfulfailuretoprovideanincometaxstatementorforprovidingafalsewithholdingstatement.

Also, for willful non-compliance with a wage lien, theemployer will be personally liable for excess wages paidtoanemployeesubject to the lien. Inaddition,allunpaidwithholdingtax,interestandpenalties,constitutealieninfavor of the State of Maryland, extending to all real and


personalpropertybelongingtotheemployer.Criminal penalties (upon Conviction)»not to exceed ten thousand dollars ($10,000) orimprisonmentnotexceedingfiveyearsorboth,for:•Willfulfailuretofileareturn.•Willfulfailuretowithholdtherequiredtax.•WillfulfailuretopaythetaxwithheldtotheComptroller.

»not to exceed five-hundred dollars ($500) orimprisonmentnotexceedingsixmonthsorboth,for:•Willful failure to provide a copy of withholding taxstatement.

• Providing a false or fraudulent withholding taxstatement.

• Failure to provide information on a withholdingcertificateorforfilingafalsecertificate.

•WillfulfailuretopaytotheComptrollersalarywagesorcompensationsubjecttoasalarylien.

3. pAYMENtS SuBJECt to WithhoLDiNgtaxable wagesForwithholdingpurposes,“wages”meanallcompensationfor services performed by an employee, including thecash value of all remuneration paid in anymedium otherthan cash. (Exceptions are listed later in this section.)These exceptions are similar to the exclusions for federalwithholding purposes, so that in most instances wagessubject to federal withholding also will be subject toMarylandwithholding.Taxable“wages”includeallemployeecompensation,suchassalaries,fees,bonuses,commissions,vacationallowances,backpayandretroactiveincreases.Wages paid in any form other thanmoney aremeasuredby their fair market value. These include lodging, meals,propertyorotherconsiderationsforpersonalservices.AgriculturalwagessubjecttoSocialSecurity(FICA)taxaresubject to Maryland withholding tax. Tips and gratuitiespaid to an employee by a customer also are subject towithholdingtaxinthesamemannerasreportedforfederalpurposes.Withholding is not required for the following:• Domesticserviceinaprivatehome,localcollegecluborlocalchapterofacollegefraternityorsorority.

• Services performed by a duly ordained, commissionedor licensedminister of a church in the exercise of hisministry or by a member of a religious order in theexerciseofdutiesrequiredbysuchorder.

• nonresident individuals employed as seamen uponvessels engaged in oceanic and foreign trade orcommercewhilesuchvesselsarewithinanyoftheportsofMaryland.

• Single and student employees whose total income will be less than the minimum filing requirement. (See page 8.)

• Employees paid at a rate of less than $5,000 annually.

Nonresident employees subject to withholdingA nonresident is not subject to tax if:• His income consists entirely of wages or othercompensation for personal services performed inMaryland;and

• Thestateofresidencehasagreedinwritingtoallowareciprocalexemptionfromtaxandwithholdingforeachother’sresidents.

Asaresultofthisprovision,theresidentsofanumberof

states are exempt and nowithholding of Maryland tax isto bemade by the employer. Under such circumstances,it is necessary that Maryland Form MW507, Employee Maryland Withholding Exemption Certificate, be filedwiththeemployerinwhichtheemployeecertifiesthatheresideswithinoneofthereciprocalstateslistedontheform.nonresidents fromstates thathaveno income tax laworhavenowrittenreciprocalincometaxagreementwiththisstatearesubjecttoMarylandtaxandwithholdingmustbemade from salaries and wages for services performed inMaryland.Withholding isalso required ina saleorexchangeof realpropertyandassociatedtangiblepersonalpropertyownedbyanonresidentornonresidententity.Lottery & gambling winnings subject to withholdingLottery and other gamblingwinnings in excess of $5,000aresubjecttowithholdingatarateof8.75%forMarylandresidents or 7% for nonresidents. Pari-mutuel (horseracing)winningsinexcessof$5,000andatleast300timesas large as the original wager are subject to the samewithholdingrates.Exemption certificateAt the time of or before hiring a new employee, theemployermustobtainacertificateofexemption,MarylandFormMW507,fromtheemployee.Thiscertificateauthorizesthe employer to withhold Maryland income tax from theemployee's salary, based on the number of withholdingexemptionsclaimedonFormMW507.Often,thenumberofwithholdingexemptionswillcorrespondwiththenumberofpersonalexemptionsallowedtheemployeeincomputinghistaxonhisMarylandincometaxreturn.However,iftheemployeeexpectsthathisfederaladjustedgrossincomewillexceed$100,000(or$150,000iffilingajointincometaxreturn)hemustusetheworksheettorecalculatethenumberofwithholdingexemptionstowhichheisentitled.The value of personal exemptionswill be reduced at thisincomelevelontheMarylandincometaxreturn.(Toseethereductioninexemptions,atthevariousincomelevels,gotopagetwoofMarylandFormMW507whichcanbeobtainedatwww.marylandtaxes.com.)Also,iftheemployeeexpectsthattheamountofMarylandincometaxwithheldwillnotequaltheMarylandtaxliability,hemust use theworksheet to recalculate the number ofexemptionstowhichheisentitled.Theemployeealsomayenter into an agreement with the employer to have anadditionalamountof taxwithheld.As longas thenumberofwithholding exemptions claimed by the employee doesnot exceed the number he is entitled under the law, thetotalwithholdingexemptionsshownontheMarylandFormMW507donothave toagreewith the total shownon thefederalFormW-4.When a new employee files a certificate, the employermust make it effective with the first payment of wages.A certificate, once filedwith the employer, will remain ineffectuntilanewcertificateisfiled.Ifanemployeefailstofurnishacertificate,theemployerisrequiredtowithholdthetaxasiftheemployeehadclaimedonewithholdingexemption.AnemployerisrequiredtosubmitacopyoftheexemptioncertificatereceivedbytheComplianceDivisionif:1.Theemployerhasanyreasontobelievethiscertificateisincorrect.

2.Theemployeeclaimsmorethanten(10)exemptions.3.Theemployeeclaimsexemptionfromwithholdingonthebasisofnonresidence.

4.The employee claims exemption from withholdingbecause he/she has no tax liability this year, and the


wagesareexpectedtoexceed$200aweek.5.The employee claims an exemption from withholdingundertheMilitarySpousesResidencyReliefAct.(Inthiscase,FormMW507MmustbecompletedandattachedtoFormMW507.)

Whentheexemptioncertificateisreceived,theComplianceDivision will make a determination and will notify theemployerifachangeisrequired.Withholding for annuity, sick pay and retirement distributionsApayeeofanannuity, sickpayor retirementdistributionmay request the payor to withhold tax with respect topayments of annuities, sick or retirement distributionpayments.Ifsucharequestismade,thepayormustdeductand withhold the tax as required. The amount requestedto be withheld from each sick pay, annuity payment orretirement distribution must be a whole dollar amountof at least $5 per month for annuities and retirementdistributions,andatleast$2perdailypaymentinthecaseofsickpay.Mandatory withholding on retirement distributionsWhenarolloverdistributionissubjecttoamandatoryfederalwithholding, the eligible rollover distribution of Marylandresidents is subject to a mandatory state withholding of7.75%.Otherwise,suchwithholdingshouldnot takeplaceunlessrequestedbythepayee.tax-exempt organizationsEntities which are tax-exempt organizations under IRC501(c)(3), and that are eligible to claim the MarylandDisability Employment Tax Credit or the Commuter TaxCredit against their withholding taxes, will use FormMW508CR to claim the amount of credit. The paperversionofForm500CRhasbeendiscontinued.MW508CRisattachedtoMW508foremployerssubmittingfewerthan25 Forms W-2 or 1099. MW508CR is attached to FormMW508Aforthoseemployersrequiredtofileelectronically.SeeAdministrativeRelease344. DEtERMiNiNg thE AMouNt to BE WithhELDMaryland law provides that the Comptroller developwithholdingtaxschedulestoapproximatethetaxonwages,withoutconsideringthetaxratesineffectthatarelessthan4.75%.In thisguide,youwill find theappropriatepercentage forthecomputationoftheamountofMarylandincometaxtobewithheld.Applytheapplicablepercentagetothetaxableincome. Note: there are two different rates explainedbelow.TheSInGLE rate isusedby singleemployees;employeeswho are dependents on another person's tax return, oremployeeswhoareMarriedplanningtofileseparately.TheJOInT rate is used byMarried taxpayerswho plan to filejointreturns,employeeswhoqualifyforHeadofHouseholdstatusontheirtaxreturn,orforemployeeswhoqualifyasWidoworWidowerwithadependentchild.ForemployeeswhoareresidentsofMaryland,usetheratecorrespondingtotheareawheretheemployeelives.Sinceeach county sets its local income tax rate, there is thepossibility of having 24 different local income tax rates.To reduce thenumberof local income tax rates,wehaveestablished 14 local income tax rates. Use the rate thatequalsorslightlyexceedstheactuallocalincometaxratetoensurethatsufficienttaxiswithheld.ForemployeeswhoarenotresidentsofMaryland,usethenonresident rate, which includes no local tax; but doesincludetheSpecial1.25%nonresidentrate.For employees who are residents of Maryland and areworking andpayingwithholding taxes inDelaware or any

othernonreciprocalstate,usetheDelaware/nonreciprocalstaterate,whichincludeslocaltaxandcreditfortaxespaidtoanotherstate.Withholding isacombinationof thestate incometaxrateand local taxes. When using the percentage method ofwithholding,theemployermustfollowthesefoursteps:1.Subtract an allowance for Standard Deduction (15percentofwagesforthepayrollperiodwithaminimumand maximum as set forth for the particular payroll)fromtheemployee’swages.

2.Multiply the amount of one withholding exemption forthepayrollperiodbythenumberofexemptionsclaimedontheemployee’sFormMW507.

3.Subtract the amount determined in Step 2 from theemployee’swages.

4.Apply the appropriate percentage rate table to theresultingfiguretodeterminetheamountofwithholding,based on the employee’s county of residence. If theemployeeisaresidentofanonreciprocalstate,usethespecialnonresidenttaxrate.

Visit www.marylandtaxes.com to use our onlinewithholdingcalculator.5. hoW to FiLEForfilingpurposes,employerswillfallintooneoffivetypesoffilingcategories:• Accelerated – thoseemployerswhowere required towithhold$15,000ormorefortheprecedingcalendaryearandwhohave$700ormoreofaccumulatedwithholdingare required to remit the withholding payment withinthree business days following that payroll (pay date).You may request a waiver allowing monthly returns.Arenewal of the waiver also is available if eligibilityto file federal withholding tax returns on a monthlybasisisunchanged.Paydateisdefinedasthedatethepaychecksaremadeavailabletoemployees.

• Quarterly – those employers with less than $700 ofwithholding per quarterwho are required to remit thetaxwithheldonaquarterlybasis.

• Monthly – those employers with more than $700 ofwithholdinginanyonequarterwhoarerequiredtoremitthetaxwithheldonamonthlybasis.

• Seasonal – those employerswho operate only duringcertainmonths. Youmust obtain prior approval to fileona seasonal basis. If approval is granted, youwouldonlybe required to file reportsduring theperiodyourbusinessisinoperation.

• Annual – those employers with less than $250withholding per calendar year are required to remitthe taxwithheldonanannual basis. Theduedate forfilinganannualFormMW506isthelastdayofJanuaryfollowingtheyeartowhichsuchwithholdingapplies.Inaddition,annualfilersmustfiletheAnnualReconciliationFormMW508withtheFormW-2foreachemployee.

bFileThisonlineserviceisusedtofileandpayEmployer’sReturnofIncomeTaxWithheld(MW506).AvalidFEInorSSnandMarylandCRn(thisisyoureight-digitMarylandtaxaccountnumber) are required. If you have not registered to fileMaryland business taxes or do not have aCRn, youmayregisteronourWebsiteatwww.marylandtaxes.com.Youmay be asked to provide a bank routing and transitnumber(RTn)andadepositor’saccountnumber(DAn)tomakepaymentsofbusinesstaxes.Thefundsautomaticallywill be withdrawn from your bank account on the datespecified.Do not send a paper return when using bFile, this


onlineservicesupportsthecurrentyearandtwopreviousyears.Ifyourreturnisforapriorperiod,youmayrequestthese formsbycallingTaxpayerService410-260-7980,ore-mailtaxhelp@comp.state.md.us.TheRevenueAdministrationDivisionhassentpostcardstowithholding filers advising themweno longer sendpapercoupon books unless the postcard was returned or ane-mailwas received requesting them.This is aneffort toreduceand/oreliminatepaperprocessingandtoencourageemployers to use the online service which has manybenefitstooffer:Fast – Enter your business and bank information once.Theinformationwillbefilledineachtimeyoufileareturn,usingauto-fill.Accurate–Theautomaticfill-infeatureeliminatestheriskofaccidentlyenteringwrongbusinessorbankinformationwhenyoufileyourreturn.Easy – bFile supports filing and associating multiplebusinesses under one user registration. A list of thebusinesseswillbedisplayedwhenyoulogon.History – All returns you file while logged on will beaccessibletoviewinaconsolidatedlist.

You must include your CRN, and, if available, yourFEInon all withholding forms or other correspondence.Thiswillensurethatallpaymentsand/oradjustmentsareproperlypostedtoyouraccount.Each year, the Revenue Administration Division analyzesaccounts. If a payment record requires a change in filingfrequency,theemployerwillbenotified.Anemployermayfileawrittenrequesttochangethefilingfrequency,whichifapprovedwillchangeatthebeginningofthenextcalendaryear.Forpaperfilers,thecouponbookforthenewcalendaryearwillreflectanychange.Theduedatesofreturnsareasfollows:period Due date period Due dateJanuary. . . . . February15 July . . . . . . . August15February. . . . March15 August . . . . . September15March . . . . . . April15 September . . October151stQuarter . . April15 3rdQuarter. . October15April . . . . . . . May15 October . . . . november15May. . . . . . . . June15 november. . . December15June . . . . . . . July15 December. . . January152ndQuarter. . July15 4thQuarter. . January15 Annual . . . . . January31

if a due date falls on a Saturday, Sunday or holiday, the return is due on the next business day.W-2 Wage and tax StatementsOn or before January 31 of each year, employers mustprovide awage and tax statement, federal FormW-2, toeach employee. To ensure consistency in reporting, theRevenueAdministrationDivisionwill require the state taxwithheld (box 17) and local tax withheld (box 19) to becombined and reported as one amount in box 17 (stateincome tax), and leave box 18 (local wages) blank. Thestatepickupamountmustbereportedinbox14(other).Inaddition,theword“STPICKUP”istoappearinbox14(other)ofyouremployees’year-endprintedFormW-2.Year-End ReconciliationOnorbeforeFebruary28thofeachyear,employersmustfileayearendreconciliationtotheRevenueAdministrationDivisionusingFormMW508.Employershave fouroptionstofiletheirFormMW508.Employerswhohave25ormoreW-2storeportarerequiredtofileelectronicallyandmustselectoption1,2or3.Employerswhohave less than25W-2s to reportmayuseoption4–paper filing,however,

we encourage all employers regardless of the number ofstatementstofileelectronicallyusingoneofthefirstthreeoptionsbelow.Anyunderpaymentmustbesubmittedwiththereconciliation.If theaccount isoverpaid,please indicateontheMW508,whether you wish the overpayment refunded or a credittobeapplied to futureperiods. Ifyou request thecredit,pleasewait for notification of approval prior to using thecredit.To obtain a complete copy of The Magnetic MediaSpecificationsBooklet,pleasevisitwww.marylandtaxes.com.(1) bFile Bulk upload Application. This application

allows the user (employers/payroll providers) to logintoourbFileapplicationanduploadatextfileinthemodifiedEFW2format.Thisapplicationusesthesameregistrationused for filingWithholding andSales andUse Tax returns and payments. As a registered user,you will create a history that can be viewed by youwheneveryoulogintotheapplication.TheBulkUploadapplicationisdesignedtoacceptonefile and validate it before it will accept another file.We recommend that individuals who submit data formultiple employers create a separate registration foreach employer, or create one logon and append allemployerdatainonefile.Ofthefourrequiredrecordswithintheelectronictextfile,thereisachangetotheRVrecord.The“RV”recordhas been changed to reflect additional requirementsnowbeing includedon thepaperMW508 for taxyear2014.ThefollowinghavebeenaddedtotheRVrecordlayout:• In position331,Will yoube submitting additionalW-2’s?YforYes,nforno.

• Inposition332,Will yoube submittingadditional1099’s?YforYes,nforno.

• Inpositions333-338,enterthenAICScode.• Inpositions339-496,Blanks• In the remaining positions all else remains thesame.

TheRVrecordisanelectronicversionofthepaperformMW508,and isarequiredrecord ifyou fileusingthisoption. If requesting an overpayment or refund, therequestmustbeincludedintheRVrecord.Also available is the bFile Bulk Upload TestingApplication.Thisapplicationallowsusers to test theirabilitytouploadandtransmittheirW-2sandMW508susingatextorzipfile,priortouploadingtheirannualproductionfile.NotE:at thistime,1099scannotbesubmittedusingthismethod.

(2) bFile File Withholding Reconciliation Application.This application allows the user (employers/payrollproviders) to log in to our bFile application andmanuallykeythedatafromtheirMW508andupto250W-2 forms. Each W-2 must be keyed in individually,and theuser receives confirmation of the filingwhencompleted.Thisapplicationusesthesameregistrationused for filing Withholding and Sales and Use Taxreturns and payments. As a registered user, youwillcreateahistory thatcanbeviewedbyyouwheneveryoulogintotheapplication.OnlyoneMW508maybefiledonlineperbusinessper tax year. If youneed tocorrect a submitted filing then youmust complete apaperformMW506Awhichcanbedownloadedfromourwebsite.

(3) File using Magnetic Media. This option allows the


user(employers/payrollproviders)tofileonaCDor3½ inchdiskette.Therecordsmustbe in themodifiedEFW2format.Ofthefourrequiredrecordswithintheelectronictextfile, there is a change to the RE record. The CRn inpositions222-229hasbeenremovedandreplacedwithspaces.TheRVrecordisanelectronicversionofthepaperformMW508,and isarequiredrecord ifyou fileusingthisoption. If requesting an overpayment or refund, therequestmustbeincludedintheRVrecord.To obtain a complete copy of The MagneticMedia Specification Booklet please visit www.marylandtaxes.com.NotE:ForquestionsonbFileBulkUploadApplication,bFileFileWithholdingReconciliationApplicationorFileUsing Magnetic Media, please contact the RevenueAdministrationDivisionat410-260-7150.

(4) File using paperThisoptionisavailabletoemployersand payroll providers who have fewer than 25 W-2formstoreport.Tofilebypaperyoumust:• CompleteFormMW508.• AttachallapplicableW-2sand1099s.• Thenmailto: Revenue Administration Division Returns processing, Room 206 110 Carroll Street Annapolis, Maryland 21411-0001

If youarenot required to report electronically by federalorMarylandlaw,anddonotwishtosubmitindividualwageandtaxstatements,usingfederalFormW-2(copy1), theRevenue Administration Division will accept a computerprintoutprovideditcontainsallofthefollowinginformation:• Employername• Employeraddress• EmployerCentralRegistrationnumberandFederalEmployerIdentificationnumber(FEIn)

• Employeename• Employeeaddress• EmployeeSocialSecuritynumber• Employeegrossearnings• EmployeeMarylandearnings• AmountofMarylandstateandlocaltaxwithheldfromemployee(onefigure)

Theprintoutshouldlisttheemployee’snamesinalphabeticalorderorSocialSecuritynumberorder.Employersreportingon computer printouts are still required to furnish eachemployee with the annual wage and tax statement, orfederal Form W-2, for reporting salaries and wages forMaryland tax withheld on the employee’s individual taxreturns.Forallcorrectionstoindividualemployeeaccounts,aFormW2Cmustbesubmittedonpaper.Name, Address, Federal Employer identification Number Changes and Final Returns.Youcanmakechanges toyourname,address, FEIn,andmore online; or use the change of address or ownershipforminthecouponbook.DonotmakethechangesontheFormMW506. If you have elected to continue to use thecoupon books, they will reflect the new information youhaveprovidedwhentheyarepreparedforthenewcalendaryear.If your FEIn has changed, you may be issued anothercoupon book reflecting the new identification number. If

youareusingouronlineoptionsandhaveupdatedtheFEInonline,nothingmoreneedstobedone.You must indicate if the business has been sold ordiscontinued.YoucandothisonlineaswellasusingFormMW506FR.Youmustnotify theComptrollerofMaryland ifwithholdinghas temporarily stoppedaswell asanendingdateforthetemporarystoppage.AmendmentsMW506A or MW506AMTheFormMW506AisusedtoamendFormMW506informationfor the current calendar year.Entertheperiodandyearbeingamended.Enterthepreviouslyreportedandremittedamounts under “Previously Reported.” Enter the figuresreflecting the change to the reported amounts under“CorrectReported.”If the correct amount is greater than the previouslyreportedamount,enterthedifferenceintheunderpayment/remittance block, and attach a check or money orderpayabletotheComptrollerofMaryland.Iftheamountislessthanthepreviouslyreportedamount,enter the amount in the overpayment block. You mayuse this amount as a refund or credit against futurewithholdings.Ifyouarerequestingacredit,pleasewaitfornotificationofapprovalpriortousingthecreditonafutureperiod. Please check the appropriate box for a credit orrefundonFormMW506A.MW508AThe Form MW508A is used to amend Form MW508information.Enter the figures from the originally filed Form MW508in the “Previously Reported” column. Enter the figuresreflecting changes created by the Forms W-2C in the“CorrectedAmounts”column.If the amount on line 3, “Corrected Amounts” column,is greater than the amount on line 2, attach a check ormoneyorderpayabletotheComptrollerofMarylandfortheamountonline5.Iftheamountonline2isgreaterthantheamountonline3,attachastatementcontainingthefollowinginformation:1. Details how the overpayment occurred with all W-2spertainingtothatoverpayment.

2. Whether you will use the overpayment as a creditagainst Maryland withholding tax for a future period,orifyoupreferadirectrefund.if you are requesting a credit, please wait for notification of approval prior to using the credit on a future period.

3. Themethodbywhichyousubmitted theoriginalW-2,(magnetictape,paper,etc.)

Anemployerisnotallowedtoadjusttheamountsreportedasincometaxwithheldinapriorcalendaryearunlessitisto correctanadministrativeerror.Anadministrativeerrorisanyerrorthatdoesnotchangetheamountofincometaxthatwasactuallywithheld.Generally,anemployercannotadjust theamounts reported foraprioryearbecause theemployeeusestheamountshownonFormW-2asacreditwhenfilingtheincometaxreturnfortheyear.Where Amended Returns Are to Be SentAll returns in connection with withholding of Marylandincometaxaretobesenttothefollowingaddress:

Comptroller of Maryland Remittance processing Center 110 Carroll Street Annapolis, Maryland 21411-0001

AllremittancesshouldbemadebycheckormoneyorderpayabletotheComptrollerofMaryland-WH.


Employers are cautioned not to send cash by mail.SpECiAL WithhoLDiNg iNFoRMAtioN FoR SiNgLES AND StuDENtS oNLY if the employee’s income is below the following amounts and this income is their only income for the year, you will not be required to withhold Maryland income tax. Weekly $ 195.19 Biweekly $ 390.38 Semi-Monthly $ 422.92 Monthly $ 845.83 Quarterly $ 2,537.50 Annual $ 10,150.00 Daily $ 27.81

in the event of a disaster or an emergencyIftheGovernorofMarylanddeclaresastateofemergency,or,thePresidentdeclaresafederalmajordisasterorstateofemergency,or,thereisawidespreadutilityoutage,anyout-ofstatebusinessthathasnoregistration,nexusortaxfilingsinMarylandpriortothedeclaredstateofemergencywillbeexempt from certain registration requirements. This doesnotapplytoabusinesswithapriorrequesttobeaMarylandregisteredbusinessortoStateorlocalgovernment.Theseout-of-statebusinessesthatdodisaster-oremergencyrelated work during a disaster as well as its out-of-stateemployeesarenotsubjecttothefollowing: •Stateandlocallicensingorregistrationrequirements. •StateorCountyincometaxes. •Unemploymentinsurancecontributions. •Personalpropertytax. •SalesandUseTaxrequirements. •Employerwithholdingtaxrequirements.However,suchbusinessesmustprovideastatementrelatedto the disaster to the Comptroller of Maryland with thefollowinginformation: •Companyname. •Stateofdomicile. •Principaladdress. •FederalTaxIdentificationnumber. •Dateofentryintothestate,and, •Contactinformation.



FORMULATotal wages (before any deductions)

LESS Allowance for Standard Deduction (15% of wages for payroll period with a minimum and maximum as set forth for the particular payroll period)

LESS Value of exemptions (number of exemptions times the allowable amount for one exemption as shown for the applicable payroll period)

Equals TAXABLE INCOME

Note: The number of exemptions to be used in this formula is determined from the Form MW507 (Maryland Employee Exemption Certificate) filed by your employee. Form MW507 is available on our Web site at www.marylandtaxes.com.

Amount 15% allowance for Payroll of one Standard Deduction* period exemption MIN MAX

Weekly $ 61.54 $ 29.00 $ 38.55Bi-weekly $ 123.08 $ 58.05 $ 77.00Semi-monthly $ 133.33 $ 62.50 $ 83.50Monthly $ 266.67 $ 125.00 $ 167.00Quarterly $ 800.00 $ 375.00 $ 500.00Annually $ 3,200.00 $ 1,500.00 $ 2,000.00Daily $ 8.77 $ 4.15 $ 5.50

* The standard Deduction is 15% of the gross income with a minimum of $1,500 and a maximum of $2,000.

this table includes Maryland state and local income taxes less credit for Delaware income tax

percentage method of withholding forMARYLAND RESiDENt EMpLoYEES Who WoRK iN DELAWARE

(a) Married Filing Joint or head of household

Withholding - Weekly payroll periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$96.00

iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 2,885 3.20%$ 2,885 $ 3,365 92.31 plus 3.20% $ 2,885$ 3,365 $ 4,327 107.69 plus 3.20% $ 3,365$ 4,327 $ 5,769 138.46 plus 3.20% $ 4,327$ 5,769 -- 184.62 plus 3.20% $ 5,769

Withholding - Bi-Weekly payroll periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$192.00


Withholding - Semi-Monthly payroll periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$208.00

iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 6,250 3.20%$ 6,250 $ 7,292 200.00 plus 3.20% $ 6,250$ 7,292 $ 9,375 233.33 plus 3.20% $ 7,292$ 9,375 $ 12,500 300.00 plus 3.20% $ 9,375

$ 12,500 -- 400.00 plus 3.20% $ 12,500

Withholding - Monthly payroll periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$417.00


(b) Single including Married Filing Separately or Dependent



















Withholding - Quarterly payroll periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$1,250.00

iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 37,500 3.20%$ 37,500 $ 43,750 1,200.00 plus 3.20% $ 37,500$ 43,750 $ 56,250 1,400.00 plus 3.20% $ 43,750$ 56,250 $ 75,000 1,800.00 plus 3.20% $ 56,250

$ 75,000 -- 2,400.00 plus 3.20% $ 75,000

Withholding - Daily payroll periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$13.70

iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 412 3.20%$ 412 $ 481 13.19 plus 3.20% $ 412$ 481 $ 618 15.38 plus 3.20% $ 481$ 618 $ 824 19.78 plus 3.20% $ 618

$ 824 -- 26.37 plus 3.20% $ 824

Withholding - Annual payroll periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$5,000.00

iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 150,000 3.20%$ 150,000 $ 175,000 4,800.00 plus 3.20% $ 150,000$ 175,000 $ 225,000 5,600.00 plus 3.20% $ 175,000$ 225,000 $ 300,000 7,200.00 plus 3.20% $ 225,000$ 300,000 -- 9,600.00 plus 3.20% $ 300,000



iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 25,000 3.20%$ 25,000 $ 31,250 800.00 plus 3.20% $ 25,000$ 31,250 $ 37,500 1,000.00 plus 3.20% $ 31,250$ 37,500 $ 62,500 1,200.00 plus 3.20% $ 37,500$ 62,500 -- 2,000.00 plus 3.20% $ 62,500


iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 275 3.20%$ 275 $ 343 8.79 plus 3.20% $ 275$ 343 $ 412 10.99 plus 3.20% $ 343$ 412 $ 687 13.19 plus 3.20% $ 412$ 687 -- 21.98 plus 3.20% $ 687



percentage method of withholding forMARYLAND RESiDENt EMpLoYEES Who WoRK iN DELAWARE

Lump Sum Distribution of Annual Bonusthe amount to be withheld shall be

3.20%this table includes Maryland state and local income taxes less credit for Delaware income tax










percentage method of withholding for1.25 pERCENt LoCAL iNCoME tAX



iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 2,885 0.00 plus 6.00%$ 2,885 $ 3,365 173.08 plus 6.25% $ 2,885$ 3,365 $ 4,327 203.13 plus 6.50% $ 3,365$ 4,327 $ 5,769 265.63 plus 6.75% $ 4,327$ 5,769 -- 362.98 plus 7.00% $ 5,769






iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 12,500 0.00 plus 6.00%$ 12,500 $ 14,583 750.00 plus 6.25% $ 12,500$ 14,583 $ 18,750 880.21 plus 6.50% $ 14,583$ 18,750 $ 25,000 1,151.04 plus 6.75% $ 18,750$ 25,000 -- 1,572.92 plus 7.00% $ 25,000









iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 8,333 0.00 plus 6.00%$ 8,333 $ 10,417 500.00 plus 6.25% $ 8,333$ 10,417 $ 12,500 630.21 plus 6.50% $ 10,417$ 12,500 $ 20,833 765.63 plus 6.75% $ 12,500$ 20,833 -- 1,328.13 plus7.00% $ 20,833












iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 37,500 0.00 plus 6.00%$ 37,500 $ 43,750 2,250.00 plus 6.25% $ 37,500$ 43,750 $ 56,250 2,640.63 plus 6.50% $ 43,750$ 56,250 $ 75,000 3,453.13 plus 6.75% $ 56,250$ 75,000 -- 4,718.75 plus 7.00% $ 75,000


iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 412 0.00 plus 6.00%$ 412 $ 481 24.73 plus 6.25% $ 412$ 481 $ 618 29.02 plus 6.50% $ 481$ 618 $ 824 37.95 plus 6.75% $ 618$ 824 -- 51.85 plus 7.00% $ 824







iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 275 0.00 plus 6.00%$ 275 $ 343 16.48 plus 6.25% $ 275$ 343 $ 412 20.78 plus 6.50% $ 343$ 412 $ 687 25.24 plus 6.75% $ 412$ 687 -- 43.78 plus 7.00% $ 687

Withholding - Annual payroll periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$5,000.00 iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 100,000 0.00 plus 6.00%$ 100,000 $ 125,000 6,000.00 plus 6.25% $ 100,000$ 125,000 $ 150,000 7,562.50 plus 6.50% $ 125,000$ 150,000 $ 250,000 9,187.50 plus 6.75% $ 150,000$ 250,000 -- 15,937.50 plus 7.00% $ 250,000


7.00%





























iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 8,333 7.00%$ 8,333 $ 10,417 583.33 plus 7.25% $ 8,333$ 10,417 $ 12,500 734.38 plus 7.50% $ 10,417$ 12,500 $ 20,833 890.63 plus 7.75% $ 12,500$ 20,833 -- 1,536.46 plus 8.00% $ 20,833


























8.00%










Withholding Daily periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$13.70.

if taxable net income is: the amount to be over: But not over: withheld shall be of excess over$ 0 $ 412 7.15%$ 412 $ 481 29.46 plus 7.40% $ 412$ 481 $ 618 34.55 plus 7.65% $ 481$ 618 $ 824 45.05 plus 7.90% $ 618$ 824 -- 61.33 plus 8.15% $ 824

Withholding Weekly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$96.

if taxable net income is: the amount to be over: But not over: withheld shall be of excess over$ 0 $ 2,885 7.15%$ 2,885 $ 3,365 206.25 plus 7.40% $ 2,885$ 3,365 $ 4,327 241.83 plus 7.65% $ 3,365$ 4,327 $ 5,769 315.38 plus 7.90% $ 4,327$ 5,769 -- 429.33 plus 8.15% $ 5,769

Withholding Bi-Weekly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$192.


Withholding Semi-Monthly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$208.



(a) Married Filing Joint or head of household (b) Single including Married Filing Separately or Dependent

Withholding Daily periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$13.70.

if taxable net income is: the amount to be over: But not over: withheld shall be of excess over$ 0 $ 275 7.15%$ 275 $ 343 19.64 plus 7.40% $ 275$ 343 $ 412 24.73 plus 7.65% $ 343$ 412 $ 687 29.98 plus 7.90% $ 412$ 687 -- 51.68 plus 8.15% $ 687

Withholding Weekly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$96


Withholding Bi-Weekly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$192.


Withholding Semi-Monthly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$208.











Withholding Monthly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$417.

if taxable net income is: the amount to be over: But not over: withheld shall be of excess over$ 0 $ 12,500 7.15%$ 12,500 $ 14,583 893.75 plus 7.40% $ 12,500$ 14,583 $ 18,750 1,047.92 plus 7.65% $ 14,853$ 18,750 $ 25,000 1,366.67 plus 7.90% $ 18,750$ 25,000 -- 1,860.42 plus 8.15% $ 25,000

Withholding Quarterly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$1250.

if taxable net income is: the amount to be over: but not over: withheld shall be of excess over$ 0 $ 37,500 7.15%$ 37,500 $ 43,750 2,681.25 plus 7.40% $ 37,500$ 43,750 $ 56,250 3,143.75 plus 7.65% $ 43,750$ 56,250 $ 75,000 4,100.00 plus 7.90% $ 56,250$ 75,000 -- 5,581.25 plus 8.15% $ 75,000

Withholding Annual periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$5,000.

if taxable net income is: the amount to be over: But not over: withheld shall be of excess over$ 0 $ 150,000 7.15%$ 150,000 $ 175,000 10,725.00 plus 7.40% $ 150,000$ 175,000 $ 225,000 12,575.00 plus 7.65% $ 175,000$ 225,000 $ 300,000 16,400.00 plus 7.90% $ 225,000$ 300,000 -- 22,325.00 plus 8.15% $ 300,000

(a) Married Filing Joint or head of household (b) Single including Married Filing Separately or Dependent

Amount to Be Withheld on Annual Bonuspaid in Lump Sum8.15% of Bonus

Withholding Monthly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$417.

if taxable net income is: the amount to be over: But not over: withheld shall be of excess over$ 0 $ 8,333 7.15%$ 8,333 $ 10,417 595.83 plus 7.40% $ 8,333$ 10,417 $ 12,500 750.00 plus 7.65% $ 10,417$ 12,500 $ 20,833 909.38 plus 7.90% $ 12,500$ 20,833 -- 1,567.71 plus 8.15% $ 20,833

Withholding Quarterly periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$1250.


Withholding Annual periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$5,000.



























$ 9,615 -- 733.17 plus 8.25% $ 9,615






























8.25%
























iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 3,846 7.35%$ 3,846 $ 4,808 282.69 plus 7.60% $ 3,846$ 4,808 $ 5,769 355.77 plus 7.85% $ 4,808$ 5,769 $ 9,615 431.25 plus 8.10% $ 5,769$ 9,615 -- 742.79 plus 8.35 $ 9,615


















iF the taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 412 7.35%$ 412 $ 481 30.29 plus 7.60% $ 412$ 481 $ 618 35.51 plus 7.85% $ 481$ 618 $ 824 46.29 plus 8.10% $ 618$ 824 -- 62.98 plus 8.35% $ 824












8.35%



















iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 12,500 7.40%$ 12,500 $ 14,583 925.00 plus7.65% $ 12,500$ 14,583 $ 18,750 1,084.38 plus 7.90% $ 14,583$ 18,750 $ 25,000 1,413.54 plus 8.15% $ 18,750$ 25,000 -- 1,922.92 plus 8.40% $ 25,000


































8.40%














$ 75,000 -- 5,881.25 plus 8.55% $ 75,000



Withholding - Annual payroll periodDOnOTWITHHOLDOnGROSSWAGESLESSTHAn$5,000.00 iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 150,000 7.55%$ 150,000 $ 175,000 11,325.00 plus 7.80% $ 150,000$ 175,000 $ 225,000 13,275.00 plus 8.05% $ 175,000$ 225,000 $ 300,000 17,300.00 plus 8.30% $ 225,000$ 300,000 -- 23,525.00 plus 8.55% $ 300,000










8.55%
















iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 150,000 7.60% $ 150,000 $ 175,000 11,400.00 plus 7.85% $ 150,000$ 175,000 $ 225,000 13,362.50 plus 8.10% $ 175,000$ 225,000 $ 300,000 17,412.50 plus 8.35% $ 225,000$ 300,000 -- 23,675.00 plus 8.60% $ 300,000










8.60%


























8.65%


























8.75%





















iF thE taxable income is the amount to be over But not over withheld shall be of excess over $0 $ 275 7.80%$ 275 $ 343 21.43 plus 8.05% $ 275$ 343 $ 412 26.96 plus 8.30% $ 343$ 412 $ 687 32.66 plus 8.55% $ 412$ 687 -- 56.15 plus 8.80% $ 687





8.80%













$ 62,500 -- 5,140.63 plus 8.85% $ 62,500














8.85%














$ 5,769 -- 472.60 plus 8.90% $ 5,769



$ 11,538 -- 945.19 plus 8.90% $ 11,538








$ 4,808 -- 397.84 plus 8.90% $ 4,808






iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 8,333 7.90%$ 8,333 $ 10,417 658.33 plus 8.15% $ 8,333$ 10,417 $ 12,500 828.13 plus 8.40% $ 10,417$ 12,500 $ 20,833 1,003.13 plus 8.65% $ 12,500$ 20,833 -- 1,723.96 plus 8.90% $ 20,833


























8.90%




























iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 8,333 7.95%$ 8,333 $ 10,417 662.50 plus 8.20% $8,333$ 10,417 $ 12,500 833.33 plus 8.45% $10,417$ 12,500 $ 20,833 1,009.38 plus 8.70% $12,500$ 20,833 -- 1,734.38 plus 8.95% $20,833





















iF thE taxable income is the amount to be over But not over withheld shall be of excess over$ 0 $ 275 7.95%$ 275 $ 343 21.84 plus 8.20% $ 275$ 343 $ 412 27.47 plus 8.45% $ 343$ 412 $ 687 33.28 plus 8.70% $ 412

$ 687 -- 57.18 plus 8.95% $ 687





8.95%

withholding guide

Documents

local income tax rates

central maryland

maryland legislature

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