Last reviewed: July 2026
New Maryland employers need four things before their first payroll: a federal EIN, a withholding account with the Comptroller of Maryland (which covers county tax too), an unemployment insurance account with the Division of Unemployment Insurance, and workers' compensation coverage, required from your first employee.
Table of Contents
Hiring your first employee in Maryland triggers registration requirements at both the federal and state level, plus one wrinkle most states skip: county-level income tax. Here's the order to work through everything.
Registration Overview
Every new Maryland employer needs:
- ☑ Federal Employer Identification Number (EIN)
- ☑ Maryland withholding tax account (Comptroller of Maryland)
- ☑ Maryland SUI account (Division of Unemployment Insurance)
- ☑ Workers' compensation insurance
- ☑ New hire reporting setup
- ☑ Payroll system or software
Step 1: Get Your Federal EIN
Your Employer Identification Number (EIN) is your federal tax ID, and you'll need it for every state registration that follows — plus opening a business bank account and running payroll itself.
Apply online at IRS.gov/EIN. It's free and you receive your EIN immediately.
Step 2: Register with the Comptroller of Maryland
Register for a withholding tax account through the Comptroller of Maryland. This single account covers both state income tax and the county "piggyback" tax every Maryland jurisdiction charges — you don't register separately with each county.
From the Payroll Desk
If you're also forming an LLC or corporation, the Maryland Business Express portal (State Department of Assessments and Taxation) handles entity filing alongside your tax registrations, saving a separate trip.
Step 3: Register for SUI
Register for a State Unemployment Insurance account through the Maryland Division of Unemployment Insurance. You'll be assigned:
- An employer account number
- Your initial SUI rate: commonly 2.6% for standard new employers
- Quarterly filing requirements
SUI is an employer-paid tax on the first $8,500 of each employee's wages. See our Maryland SUI Rates 2026 guide for the full rate table.
Step 4: Workers’ Compensation Insurance
Maryland requires workers' compensation insurance starting at your first employee, whether full-time or part-time, with narrow exceptions for sole proprietors, partners, independent contractors, and very small agricultural employers.
Coverage is available through private insurance carriers. The Maryland Workers' Compensation Commission can confirm requirements specific to your business.
Step 5: New Hire Reporting
Federal and Maryland law require you to report every new hire within 20 days of their start date. This information helps enforce child support orders.
Report through the Maryland New Hire Registry. See our New Hire Reporting guide for the required fields.
Step 6: Set Up Payroll
With registrations complete, you're ready to run payroll. Because Maryland blends state and county withholding into a single deposit, make sure your payroll software or provider is set up with the correct county rate for each employee before your first live run. Check your numbers against our paycheck calculator, and point new hires to our W-4 Helper for the federal form.
For the full walkthrough, see How to Do Payroll in Maryland.
Frequently Asked Questions
Where do Maryland employers register for unemployment insurance?
Maryland employers register for UI (unemployment insurance) with the Maryland Department of Labor, Division of Unemployment Insurance. Registration is completed online through the agency's employer portal before running your first payroll.
Where do Maryland employers register for state income tax withholding?
Maryland employers register for state and county income tax withholding with the Comptroller of Maryland. You will receive a state employer withholding account number used on all tax filings and deposits.
Do I need to register before running my first payroll in Maryland?
Yes. You must have your Maryland employer account number(s) before filing or depositing state payroll taxes. Register with the Division of Unemployment Insurance and the Comptroller of Maryland as soon as you know you'll be hiring.
What is the Maryland new employer SUI rate for 2026?
New Maryland employers are typically assigned a standard unemployment insurance rate of 2.6% on the first $8,500 of each employee's wages, per the Division of Unemployment Insurance.
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Legal & Tax Disclaimer
This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of July 2026 and may not reflect recent changes in federal or Maryland state law.
Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Maryland law before making payroll or compliance decisions for your business.