Each year, the IRS requires employers to report employee wage and salary information on Form W-2. Along with personal information, this form also reports the amount of state, federal, and other taxes that are withheld from the year’s paychecks. However, the form is not only important to the IRS, but also to the employees, who receive a copy to help prepare their individual tax returns. These forms are vitally important for most businesses and employees, and employers can incur hefty fines for filing late or incorrectly.
In addition to adhering to federal guidelines, there are also Maryland W-2 reporting requirements. While not much different from other states, employers must consider them when preparing their filings for the year. The easiest way to avoid mistakes and file on time? A payroll software. That’s what Advanced Micro Solutions can provide. We create intuitive, user-friendly accounting tools for small businesses like yours, saving you time and money each filing season.
If you’re looking for other resources dealing with Maryland W-2 reporting and withholding, check out the state government’s instruction booklets.
Understanding Maryland W-2 Reporting
But there are a few state-specific rules and regulations to which Maryland businesses must adhere. For example, Maryland law requires that employers submit their annual withholding reconciliation using the electronic format if they are filing more than 25 W-2 forms. The state also encourages all employees, regardless of the number of W-2s they file, to do so electronically. Employees with more than 25 forms who do not electronically file may incur a $100 penalty, as will each improperly filed W-2. As a result, we recommend using a payroll software to both streamline the process, file electronically, and help avoid missteps and miscalculations.
The state provides several Maryland W-2 reporting tips and tricks in its online instruction booklet. If you instead need to file 1099s, or perhaps 1099s in conjunction with W-2s, you’ll need to review the separate Maryland 1099 reporting process. That instruction booklet is provided on the Comptroller of Maryland’s website.
Finding a Software that Works
AMS Payroll ($129), one of our most popular tools, is an excellent option for employers needing an update to their Maryland payroll strategy. If you have several W-2 forms to file, you’re likely juggling a few extra payroll responsibilities. Investing in a software is an easy way to remove the financial and time-based burden from manually calculating wages yourself. You’ll make the process easier, more efficient, and more accurate.
To that end, Maryland imposes a hefty penalty on misfiled W-2 forms. A trusted payroll software is an accountant’s or small business’s best defense against improper filing. To start, our payroll software automatically calculates wages and local, state, and federal taxes, ensuring the numbers are correct regardless of employee. Then, this information is housed in a back-end data warehouse, which is easily accessed for Maryland W-2 reporting. You’ll have all your employees’ wage, pay, and personal information ready to go with just a few clicks.
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