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Maryland payroll services and resources

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Payroll services


Payroll for Maryland employees

Maryland payroll and labor laws apply to any business registered in Maryland and Maryland employers with at least one employee. There are a few things for Maryland employers to consider, from minimum wage requirements to tax withholdings and employee benefits.

Understanding Maryland’s minimum wage

The Maryland Department of Labor has information on state wage and overtime laws. Information includes minimum wage rates for hourly workers, which are changing as a result of a 2019 law. Here’s some of what you need to know:
  • As of January 2020, the Maryland minimum wage is $11 per hour.
  • Maryland is in the process of raising its minimum wage. By July 2026, Maryland’s minimum wage will be $15 per hour for all businesses, with gradual increases until then, depending on the business’s size.
  • Some employees are exempt from the minimum wage. Exempt workers include certain agricultural workers, direct family members of business owners, commissioned employees, and some apprentices or student employees.
  • Tipped employees also have to earn the minimum wage. Employers are responsible for paying tipped employees at least $3.63 per hour. That amount, plus tips, has to equal the current hourly minimum wage.

Maryland income tax withholding

As a Maryland employer, you have to withhold state taxes from employee wages. You need an Employer Identification Number (EIN) to register as an employer and pay taxes in most states. Maryland also requires a separate state tax ID number. You’ll use this number when you register with the Maryland comptroller.
Money earned by a U.S. service member’s spouse may be exempt from Maryland’s income tax when the spouse isn’t a Maryland resident. There are also separate tax withholding rules for independent contractors who aren’t Maryland residents.

Maryland employee benefits

Maryland has a few required employee benefits and some notable exceptions.
  • Sick time: An employer’s average number of workers employed each month for the previous year determines sick leave requirements in Maryland. Maryland requires employers with over 15 employees to provide paid sick and safe leave. Employers with fewer than 15 employees must provide sick leave, but it is unpaid.
  • Vacation time: Maryland law doesn’t require employers to provide paid or unpaid vacation time. If a company decides to offer vacation leave, they may decide what happens to unused vacation time when they fire an employee or the employee leaves.
  • Maryland’s Parental Leave Act: Maryland’s Parental Leave Act (MPLA) requires Maryland employers with 15-49 employees to give six weeks of unpaid parental leave during any 12-month period. Employees can take leave for the birth, adoption, or foster placement of a child.
  • Workers’ comp: Maryland employers must have workers’ compensation insurance. But some exceptions apply to agricultural employers who pay less than $15,000 in annual payroll or have fewer than three employees. Business owners, including sole proprietors, do not need workers’ comp coverage.
  • Family and Medical Leave Act: The Family and Medical Leave Act (FMLA) grants employees 12 weeks of unpaid leave in a 12-month period for specified family and medical reasons.
  • Time off to vote: Maryland employers must give employees up to two hours of paid time off to vote. This applies to employees who don’t already have two consecutive hours free while polls are open.
  • Disability insurance: Maryland employers may provide disability insurance but aren’t required to do so.

Full-service payroll for Maryland state businesses

If you’re a Maryland state business, you’ll need an online payroll system that’s compliant with state and local laws. Over 5,000 Maryland small businesses trust their payroll to QuickBooks.1
Payroll Core helps you manage payroll, calculate taxes, and access expert product support.**
Payroll Premium adds powerful tools, including same-day direct deposit, mobile time tracking, and help with HR compliance.**
Payroll Elite offers customized setup, a personal HR advisor, tax penalty protection, and 24/7 support.**
All plans come with full-service payroll and include automated taxes and forms.**

State resources

Maryland employers can find more information on labor laws, taxes, and business development via state government resources.
Federal resources
The U.S. Department of Labor provides information for employers looking for federal payroll-related information and assistance. These resources are a good place to start:
The Small Business Administration (SBA) also has information relevant to employers and those considering starting their own business. Business owners can visit multiple Small Business Development Centers across Maryland. In 2020, the SBA also launched coronavirus relief programs for struggling businesses.
QuickBooks Payroll resources
The QuickBooks Resource Center offers tips and resources for small businesses, including information on processing payroll.
Frequently asked questions
This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.
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QuickBooks Online Payroll – Tax penalty protection: Only QuickBooks Online Payroll Elite users are eligible to receive tax penalty protection. If you receive a tax notice and send it to us within 15 days of the tax notice, we will cover the payroll tax penalty up to $25,000. Additional conditions and restrictions apply. Learn more about tax penalty protection.
*Offer terms
QuickBooks Online Payroll Discount Offer Terms: Discount applied to the monthly price for QuickBooks Online Payroll Core, Premium, or Elite (“Payroll”) (collectively, “QuickBooks”) is for the first 3 months of service, starting from the date of enrollment, followed by the then-current monthly list price. Your account will be charged automatically on a monthly basis until you cancel. Each employee is an additional $4/month for Core, $8/month for Premium, and $10/month for Elite. Contractor payments via direct deposit are $4/month for Core, $8/month for Premium, and $10/month for Elite. Payroll service is optimized for up to 50 employees or contractors and capped at 150. The Payroll service includes one state filing. If you file taxes in more than one state, each additional state is $12/month for only Core and Premium. There is no additional charge for additional state tax filings in Elite. The discounts do not apply to additional employees and state tax filing fees. If you add or remove services, your service fees will be adjusted accordingly. Sales tax may be applied where applicable. To be eligible for this offer, you must be a new QuickBooks customer and sign up for the monthly plan using the “Buy Now” option. This offer can’t be combined with any other QuickBooks offers. Offer available for a limited time only. To cancel your subscription at any time go to Account & Settings in QuickBooks and select “Cancel.” Your QuickBooks cancellation will become effective at the end of the monthly billing period. You will not receive a pro-rated refund; your access and subscription benefits will continue for the remainder of the billing period. Terms, conditions, pricing, special features, and service and support options are subject to change without notice.
Automated tax payments and filings: Automated tax payments and filing are available only for state and federal taxes. Enrollment in e-services is required. Local taxes require the user to print the forms and upload them to the necessary local sites. QuickBooks Online Payroll Core does not offer local tax payments and filings. Automatic filings for state new hire paperwork are available in QuickBooks Online Payroll Premium and Elite only.
Expert product support: Included with your paid subscription to QuickBooks Online Payroll. Chat support available 24/7. U.S.-based phone support is available Monday through Friday, 6 AM to 6 PM PT, and Saturday from 6 AM to 3 PM PT. Your subscription must be current. Intuit reserves the right to limit the length of the call. Terms conditions, features, pricing, service, and support are subject to change without notice. Contact support.
Same-day direct deposit: Available to QuickBooks Online Payroll Premium and Elite users. Payroll processed before 7 AM PT shall arrive the same business day (excluding weekends and holidays). Requires setup of direct deposit and bank verification. Same-day direct deposit may be subject to eligibility criteria. Deposit delays may vary because of third-party delays, risk reviews, or issues beyond Intuit’s control. Same-day direct deposit is available only for employees.
QuickBooks Time tracking: Additional fees may apply. Time tracking included in the QuickBooks Online Payroll Premium and Elite subscription services. Features vary. The QuickBooks Time mobile app works with iPhones, iPads, and Android phones and tablets. Devices sold separately; data plan required. Not all features are available on the mobile app and mobile browser. QuickBooks Time mobile access is included with your QuickBooks Online Payroll Premium and Elite subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration required.
Customized setup: Available to QuickBooks Online Payroll Elite users only.
Expert review: Available upon request for QuickBooks Online Payroll Premium and Elite.
HR services: HR support is provided by experts at Mammoth, Inc. Requires acceptance of Mammoth’s privacy policy and Terms of Use. The HR Support Center is available only to QuickBooks Online Premium and Elite subscriptions. HR Advisor support only available in QuickBooks Online Payroll Elite. HR support is not available to accountants who are calling on behalf of their clients..
Auto Payroll: Available if the setup for employees and the company is complete, all employees are salaried employees, all employees are set up on direct deposit, bank verification and e-services are enabled, the account has not been on hold in the last 6 months, and the first payroll has been run successfully.
** Product information
QuickBooks Online system requirements: QuickBooks Online requires a persistent internet connection (a high-speed connection is recommended) and a computer with a supported internet browser or a mobile phone with a supported operating system (see System Requirements) and an internet connection (a high-speed connection is recommended). Network fees may apply.
QuickBooks Online Payroll mobile app: The QuickBooks Online Payroll mobile app works with iPhones, iPads, and Android phones and tablets. Devices sold separately; data plan required. Not all features are available on the mobile app and mobile browser. QuickBooks Online Payroll mobile access is included with your QuickBooks Online Payroll subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration required.
Cancellation policy: You’re free to switch plans or cancel anytime.
1. More than 5,000 Maryland small businesses: Based on the overall number of Maryland small business customers for QuickBooks Online Payroll products as of June 2020.
2. 1.4 million customers: Based on the overall number of customers for QuickBooks’ payroll products as of August 2020.
Terms, conditions, pricing, special features, and service and support options are subject to change without notice.