2025 YEAR END
Withholding
Withholding requirements
Employees should fill out Form MW507.
Supplemental rate
Maryland does not have a fixed supplemental flat rate.
State Unemployment Insurance (SUI)
Wage base
$8,500
Contributions
- General Range: 0.30% to 7.50%, based on the employer’s experience rating.
- New Employers: Assigned a standard rate of 2.60% until they qualify for an experience-based rate.
- New Construction Employers (headquartered outside Maryland): Also assigned a rate of 2.60%, reflecting the average for the construction industry.
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Labor
Minimum wage
$15.00
Termination Pay
- If an employee is terminated or resigns, the employer must pay all wages due by the next regular payday, as if the employment had not ended.
This includes any earned wages up to the termination date.
Unused vacation pay may be owed depending on the employer’s written policy.
More information
- Tipped Employees: Employers must pay at least $3.63 per hour in cash wages.
The employee’s total earnings (cash + tips) must equal or exceed the state minimum wage.
Note: Some counties like Montgomery and Howard have higher local minimum wages depending on employer size:
- Montgomery County (as of July 1, 2025):
- 51+ employees: $17.65
- 11–50 employees: $16.00
- 10 or fewer: $15.50
- Howard County (as of Jan 1, 2025):
- 15+ employees: $16.00
- Fewer than 15: $15.00
New Hire Filing
Reporting deadline
Within 20 days of employee hiring or rehiring.
Reporting online
Reporting by mail
Maryland State Directory of New Hires
P.O. Box 1316
Baltimore, MD 21203-1316
By Fax:
Local: (410) 281-6004
Toll-Free: 1-888-657-3534
New hire reporting form
Child Support
Online payments
More information
- Visit the Maryland Department of Human Services – Child Support Services:
🔗 https://dhs.maryland.gov/child-support-services/ - For FAQs and employer guidance:
🔗 Withholding FAQs - For additional help, contact the DHS Hotline:
📞 1-800-332-6347
Other
New employer registration
Local taxes
Reciprocal states
Pennsylvania, Virginia, Washington D.C., and West Virginia
Disability insurance
N/A
Last Updated
09/19/2025
States
The information provided here should not be considered legal or accounting advice nor should it substitute for legal, accounting, and other professional advice. If you require legal or accounting advice, you should always consult your licensed attorney, accountant, or other professional to discuss the facts of your particular situation.
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