Maryland Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

Maryland charges state and county taxes, and also has special tax rates for non-residents and for residents employed in Delaware.

Maryland tax tables have changed every year since we first started providing tax tables for our MacNail construction payroll software, back in 1990 (we started earlier for a few large states). The state tables added several new brackets in 2020. Several counties also had slight rate revisions.

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: Starting in 2000, state and local taxes were combined into one amount. Starting in 2008, there is a separate Tax Package for each county, rather than for each withholding rate. In 2011, we went back to having separate line items for state and local taxes, so they can be separated on the W-2 form.

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

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

Maryland State Unemployment Tax Instructions

In 2021, Maryland SUTA tax applies to the first $8,500 in wages for each employee (this cutoff amount has stayed constant for many years). 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 living in Other 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.

Maryland 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 filing a joint return
  • Dual Income- married filing separate returns
  • Head of House- employee claims Head of Family status, or qualified widow/widower
  • Other- not used

Maryland Tax Contacts

Payroll withholding website

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

Garden gnome with blue crab attached to toe.