January 7, 2020 Maryland state and local tax withholding changes for 2020; 2019 Forms W-2 reminders The Maryland Comptroller's has released the 2020 state and local income tax withholding percentage and regular methods. Supplemental wages For 2020, the rate of withholding for Maryland residents is 5.75% plus the local tax rate. For Maryland nonresidents the rate is increased to 8.0% (the resident rate of 5.75% plus the nonresident rate of 2.25%). For Maryland residents employed in Delaware the rate is 3.2%. Maryland local income tax rate changes for 2020 The following localities have a change in their income tax withholding rates for 2020 (rate shown in decimal form); the withholding formula in some cases reflects a rounded-up rate (i.e., for St. Mary's County, the withholding rate for 2020 is .0317, but the formula reflects a .0320 rate):
2019 to 2020 Maryland local tax rates
More information on 2020 Maryland income tax withholding may be found in the 2020 Withholding Tax Facts publication. See also the 2020 Employer Withholding Guide. Both publications are available here. Maryland Form MW507 required New employees and current employees wanting to change their state withholding are required to submit Maryland Form MW507, Employee's Maryland Withholding Exemption Certificate to their employer. The form is used by employees to communicate their state filing status and number of withholding exemptions to their employer. Federal Form W-4 cannot be used in place of Maryland Form MW 507. 2019 Form W-2 filing reminders For calendar year 2019 Forms W-2, Maryland employers filing 25 or more forms are required to submit their Forms W-2 data by magnetic media (CD or 3 ½" diskette) or over the Comptroller's Office b-File system by January 31, 2020. Payers filing 25 or more required Forms 1099 that do not participate in the 1099 combined federal/state filing program must file the forms on CD or diskette (though payers that do participate in the program and reflect withholding on 25 or more Forms 1099 must electronically file the annual withholding reconciliation). The W-2/1099 specifications are located here. Failure to file electronically if required may result in a penalty of $100 per incorrectly filed W-2/1099. Small employers filing paper copies of Forms W-2/1099 must also file by January 31, 2020. Note that magnetic media and electronic filers do not need to file a paper Form MW508, Annual Employer Withholding Reconciliation Return. The MW508 information will be included in the "RV" record data sent to the agency. The 2019 Form MW508, is located here. For more information on filing on magnetic media or electronically, call +1 410 260 7150 or send an email to efil@marylandtaxes.gov. For more information on Maryland income tax withholding, see the agency's website, call +1 410 260 7980 or +1 800 638 2937, or send an email to taxhelp@comp.state.md.us. ———————————————
——————————————— EY Payroll News Flash
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