The Maryland withholding form is one of the commonly sought after and commonly asked about forms from state employers. If you already have a basic introduction to Maryland payroll and withholding responsibilities, you might be looking for specific information about Form MW-506. Otherwise, you might need to first familiarize yourself with the larger set of payroll withholding responsibilities that come with being an employer in Maryland.
The Maryland Employer Withholding Form Guide
Are you a new and conscientious business owner or payroll professional who’s looking to learn about every nook and cranny of state laws and regulations? The first place to go for this type of deep dive is the official Maryland Employer Withholding Guide published by the state’s Comptroller’s Office. You can find everything from introductory information to detailed tax tables for the current tax year.
That said, you may not have time to review this entire document right now. With working knowledge of the federal withholding system and a versatile software solution like AMS Payroll, you may not need to review the entire thing. You may be looking to hire an accountant and simply want a basic understanding of what’s involved.
Basic Information: Maryland Withholding Tax Forms and Reporting
With this in mind, we thought we’d create a basic reference guide for some of the most common FAQs and important regulations that must be met to avoid fines and late penalties:
Determining Your Filing Category
It’s important to determine your filing category. While new accounts are typically designated on a quarterly filing schedule to start, you can immediately apply for a quarterly or monthly schedule when completing your Central Registration Application. However, once your business is established, all employer accounts are reviewed annually to update the appropriate filing category. Based on the amount of withholding tax that your employees accrue, your business may be placed into one of five filing categories:
Determine Your Maryland Withholding Form Due Date
Once you know your business’s filing category, it’s a relatively simple matter to determine the schedule of due dates for reporting and depositing the income tax withholding funds. The trick is to determine the right month that you need to file—either for the previous month’s or the previous quarter’s withholding.
Determine How to File
You’ll have two, or possibly three, different ways to file your withholding forms. You can file electronically with the state’s bFile system. You can file with paper tax forms. Or, if you don’t owe any withholding taxes to the state, you can Telefile. Find complete information about filing withholding reports here.
Resource Guides for Common Maryland Withholding Forms
Form MW-506
Form MW-507
Form MW-508