Maryland Payroll Instructions

For more about Goldenseal payroll accounting software, click here.
For more about US Federal withholding in the Goldenseal payroll software, click here.
To download free updates for Maryland and federal payroll tax tables, click here.

Maryland charges state and local taxes, and also has special tax rates for non-residents and for residents employed in Delaware. It uses 'step' tables to calculate payroll tax withholding amounts.

HINT-- Turtle Creek Software provides free annual updates for US federal and Maryland tax withholding rates.

Maryland State Withholding Instructions

To assign the correct tax rate, open the Employee account and enter the correct state tax package into the Tax Package field. Choose the tax package according to where the employee resides, not where he or she works.

NOTE: As of 2000, state and local taxes are combined into one amount.

To enter withholding information for an employee, follow these steps:

1. Choose Employees from the Accounts menu.
2. Locate the employee record.
3. Enter the employee's marital status into the Marital Status field. This is used only to calculate Federal taxes.
4. Choose the correct Tax package for the employee's place of residence.
5. Enter the number of federal dependents into the Federal Exemptions field.
6. Enter the number of dependents into the State Exemptions field.

If an employee earns less than the current cutoff amount, no Maryland Income Tax is withheld. The cutoff is located in the First Adjustment field in the MD Tax Items.

Maryland Unemployment Tax Instructions

Maryland SUTA tax applies to the first $8,500 in wages for each employee. The starting rate is 2.1% for new businesses (4.2% for construction). Experienced businesses pay 1.1% to 8.3% depending on their payroll history, past SUTA payments and UI claims.

To enter your Maryland state SUTA tax rate into the Goldenseal payroll software, follow these steps:

1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
2. You'll see a list of Tax Items. Locate your state's SUTA tax in the list, and double-click on it. HINT: If you don't see Maryland SUTA in the list, you'll need to import your state's payroll info first.
3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Employees in Multiple States

If you have employees that are residents of states other than Maryland, you'll need to import tax tables for each state. Assign the appropriate tax package to each employee, depending on where they live. The Maryland tax packages include a special tax for employees who live in Maryland but who work in Delaware.

Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

• Single- single employee with one personal exemption
• Married- married employee with two personal exemptions
• Dual Income- married employee with one personal exemption
• Head of House- employee claims Head of Family status
• Other- not used

Contacts

Payroll Tax Office-- 800 638-2937
SUTA-- 410 767-2413

Maryland Comptroller of the Treasury
Revenue Administration Division
Annapolis MD 21411

Official State Lawn Ornament

Pink plastic crab.

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