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Maryland Employer Registration

Congratulations on your decision to become a Maryland new employer! You will need a few things in place before you run your first payroll. For Maryland employer registration help, check out our partner, CorpNet.

Federal and State Tax Accounts

Federal Tax Accounts:

Apply for an EIN View Details

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”

Enroll in EFTPS View Details

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:

Register Your Business With the State of Maryland View Details

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 return as a convenience for local governments.
For more information, visit the Comptroller of Maryland website about employer taxes and the Maryland Department of Labor for answers to unemployment insurance questions.

Get Your SUTA Rate View Details

The Maryland new employer SUTA rate is 2.6% for 2024. **An exception to this is new construction employers headquartered in another state will use 3.30% in 2024. 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?“

State-mandated Requirements:

Sign up for Workers’ Comp Insurance View Details

You must have workers’ comp insurance if you have at least 1 employee in Maryland. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Maryland here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.

Offer a Qualifying Retirement Plan View Details

Maryland requires that employers with 1 or more employees who have been in business for at least 2 years and use an automated payroll system enroll in MarylandSaves , the state-mandated retirement program, or offer a qualifying retirement plan alternative.
Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.

Setting Up Your New Employee:

Fill Out Form I-9 View Details

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 Employee Fill Out Federal Form W-4 View Details

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, “What Is a W-4 Form, and What Is it Used for?“

Have Employee Fill Out State Form MW507 View Details

Have your new employee fill out Form MW507 Maryland Employee’s Withholding Exemption Certificate for state income taxes (SIT).

Report New Hires View Details

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?”

Meet Minimum Wage Requirements View Details

The 2024 minimum wage is $15.00 per hour. For more information, visit the Maryland Department of Labor.
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.

Obtain Labor Law Posters View Details

Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!

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!

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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