Our staff is committed to upholding the Jesuit ideals of this institution and to provide excellent service to our community, while focusing on future process and service improvements. The Employee’s Maryland Withholding Exemption Certificate, also known as Maryland Form MW507, is used to determine how much income tax to deduct from employee wages. When calculating overtime, only count the hours actually worked and not leave hours, such as vacation, sick time, holiday, etc. Some payroll services, such as ADP TotalSource will process your employee payroll based on each employee’s salary or hours worked. Using payroll software like Gusto, you’d key in work hours manually, add bonuses, and input new hire data yourself. The Revenue Administration Division was created in July 1993, when the revenue divisions of the Comptroller of Maryland were reorganized from a tax-type to a functional basis.

Payroll Address Change

It provides new hire reporting and tax filing in compliance with state laws and can even offer consulting services if you have questions about Maryland payroll taxes. You can give them cash ― not recommended ― provide them a check with a pay stub, which is required in Maryland, or pay them with direct deposit if you’ve received their approval in advance. For example, if you were working with Gusto, you’d print out the paychecks yourself using bank-approved check stock . Payroll software like Gusto makes inputting these changes easy as part of your payroll process. On it, employees list their full name, address, Social Security number, county of residence, filing status and exemption information. Individuals who are considered qualified spouses of military and those who are receiving annuity, sick pay or retirement distributions may need to complete separate withholding forms.

State of Maryland

In addition, they require pay stubs be provided and mandate equal pay for equal work across all employers, regardless of size. It may be helpful to view the examples below showing how payroll in Maryland is stricter than the federal government. Maryland requires small businesses, ranging from one to 14 employees, to provide their workers with unpaid sick leave.

REVENUE ADMINISTRATION DIVISION

Maryland’s tax withholding tables can be found on the state’s government website. If you’re using payroll software like Gusto, these tax withholding rates are typically programmed into the software. To provide accurate, timely, efficient, and customer friendly payroll services to all State of Maryland employees in a secured environment. Provide competent and friendly support services related to administration of voluntary and mandatory payroll deductions, subsidies and taxes. Maryland employers who are leery of making payroll or tax mistakes might find working with a professional employer organization to be a better solution than managing payroll themselves. An established PEO like ADP TotalSource provides HR and payroll consulting, and partners with your business to ensure compliance with all federal, state, and local laws and tax rules.

• The Bureau also regulates advertising, promotional activities, and other trade practices in the alcohol and cigarette industries.
• State taxes range from 2% and 5.75%, depending on the earner’s income and filing status.
• Whereas, the Comptroller (or deputies) countersigns all checks drawn by the State Treasurer upon the deposits of the State.

Online Services

Moreover, the operating system and security software environment in which agency applications are executed is maintained by the Division. In addition, the Division monitors information technology-related services, and keeps records of information technology equipment inventories for the Comptroller’s Office. Utilizing advanced payroll systems and technology, the Central Payroll Bureau processes payroll for a large number of employees across various state agencies. Their dedication to maintaining payroll integrity and compliance with state regulations makes them a trusted resource for payroll management within the state government. These forms (created as PDF’s) can either be used as electronic fill-in forms or printed for manual use and circulation.

• Maryland expects employers to withhold state taxes ― in addition to federal income tax withholdings ― for their employees.
• The Division maintains the State’s general ledger and other accounting records.
• The center provides local and remote computer services via terminals and communications networks for all divisions under the Comptroller, thirteen major departments of State government, and many small agencies.
• In addition, your payroll provider will need to know if anyone was promoted or received a pay rate change so that they can update that employee’s status and pay rate.
• Maryland’s tax withholding tables can be found on the state’s government website.

I keep remembering what a former director would often say «It takes a village to raise a child» and I couldn’t agree more. Every decision requires constant review of the many governing federal and state guidelines to ensure our compliance with the law. I’m very proud of our CPB staff members and their dedication to always strive for that Olympic score of «10» each and every day. If you close your account without notifying Central Payroll, Central Payroll will still attempt to deposit your funds into the account. If the account is closed, the direct deposit will «Fail» and it can take up to 3 Business Days before the funds are returned to the State of Maryland. Once this occurs, Central Payroll will issue a paper check and mail it directly to the employee’s Official Payroll Address.

The Division enforces the revenue laws relating to alcoholic beverages, business licenses, cigarettes, motor fuels, and sales and use tax. Division agents conduct investigations, arrest violators, collect unpaid taxes, issue citations, and perform inspections. From businesses that sell motor fuel, Division compliance inspectors conduct field inspections and collect fuel samples. These inspectors also carry out business license inspections and routinely inspect establishments that sell alcoholic beverages.

The Compliance Division enforces all tax laws administered by the Comptroller, including those relating to individual income taxes and business taxes, such as corporate income, withholding, and sales and use taxes. The Division conducts taxpayer audits and investigations, and collects delinquent taxes. In addition, the Division levies tax assessments, processes tax appeals, and enforces sanctions, such as asset liens. The Central central payroll bureau Payroll Bureau processes and issues paychecks to all State employees, including those in the Department of Transportation (though not the Maryland Transit Administration) and the University System of Maryland. The Bureau also handles deductions, payroll taxes, federal withholding (W-2) forms, and other payroll reports for State government.

The Bureau studies and analyzes all sources of revenue to operate State government. For the Board of Revenue Estimates, the Bureau prepares an analysis of the State’s economic outlook, and the itemized statement of anticipated revenue. The Bureau also devises equitable and economical means to collect such revenue and may recommend new revenue sources. Proposals to change Maryland tax laws are analyzed by the Bureau to determine their fiscal impact. CPB strives to provide quality payroll services in the issuance of paychecks, deposit advices and W-2 wage statements for all permanent and contractual employees of all branches of state government. You’d also mark the last day worked for any employee who was terminated during the payroll cycle.

The Division maintains the State’s general ledger and other accounting records, accounts for all State funds received and disbursed, and countersigns and distributes all State Treasury checks. Annually, the Division prepares the State’s general purpose financial statements. Once you submit the Direct Deposit authorization form, it may take up to 3-4 pay periods for your direct deposit information to take effect. Once an employee is in the payroll system, it will take 2 more pay periods for direct deposit to begin.

In addition, revenues collected by the Maryland Racing Commission, along with motor vehicle revenues, are distributed to local jurisdictions by the Comptroller’s Office. If you have more than 15 employees, you must also include how much sick time/paid time off the employee has earned and used. Time and attendance software like Homebase can be a lifesaver when managing overtime, breaks, and leave balances in Maryland. The Bureau prepares the Annual Comprehensive Financial Report, monthly financial reports, and payroll reporting for over 40,000 employees and retirees. A standardized payroll advance request and recovery process was created as a result of recently passed legislation. The Payroll Recovery Act (House Bill 1144, AK.A. Chapter 783) was passed during the 2017 General Assembly session.