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Taxes
Maryland Payroll Taxes 2026: Complete Overview for Employers
Maryland graduated 2%–5.75% (+ county taxes) income tax, SUI on $8,500, and all employer obligations.
Practical, accurate resources for Maryland small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Maryland graduated 2%–5.75% (+ county taxes) income tax, SUI on $8,500, and all employer obligations.
How to register with Comptroller of Maryland and Maryland Department of Labor as a new Maryland employer.
New employer rate 2.6%, experienced range 0.30%–7.50%, wage base $8,500.
Maryland minimum wage is $15.00/hr. Maryland’s minimum wage is $15.00/hr for all employers. Tipped employees may be paid $3.63/hr.
Semi-monthly or bi-weekly pay required. Final pay: Final wages are due on the next regular payday after separation..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Maryland-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Maryland new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Maryland recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Maryland small businesses.
Federal OT after 40 hrs/week, Maryland overtime rules, exemptions, salary thresholds.