MARYLAND PAYROLL RESOURCES · MD · REVIEWED 2026-10-03
Review Maryland pay-statement requirements, state and local withholding resources, unemployment insurance, workers’ compensation, and official employer guidance. Run payroll for a small team and get employee statements from every calculated run.
AT A GLANCE
Maryland substantially expanded its pay-statement requirements effective October 1, 2024. Private-sector employers with at least one employee must provide a written or online pay statement each payday containing specific employer, pay-period, hours, rate, compensation, deduction, gross-pay, and net-pay information. Maryland payroll can also involve combined state and local income-tax withholding, unemployment insurance, workers’ compensation, and county-specific minimum-wage rules.
Each payday, covered private employers must provide a written or online statement showing the employer’s registered name and contact information, payment date, pay-period dates, hours where required, all rates and bases of pay, gross and net pay, and each deduction.
See details →Maryland withholding combines state income tax with a local income tax tied to the employee’s county or Baltimore City residence. Use the current Comptroller withholding guide and the locality that applies to where the employee lives.
View 2026 withholding resources →Maryland is using UI Tax Rate Table A for 2026. Experience-rated contribution rates begin at 0.30% and increase according to the employer’s benefit ratio; employers should use the rate assigned by the Division of Unemployment Insurance.
View 2026 UI rates →With few exceptions, a Maryland employer with one or more employees must provide workers’ compensation coverage. The employer bears the cost of required coverage.
View employer guidance →STATE PAYROLL OVERVIEW
Maryland’s current pay-statement framework is unusually explicit. Effective October 1, 2024, the state requires private-sector employers with at least one employee to provide a written or online pay statement each payday. The statement must identify the actual employer and provide the payment date, pay-period dates, hours worked for nonexempt employees, all rates of pay, other bases and amounts of compensation, applicable piece-rate information, gross pay, net pay, and the amount and description of each deduction.
Maryland payroll also has a distinctive local-tax layer. All 23 counties and Baltimore City levy a local income tax collected through the state system. For withholding purposes, the relevant local jurisdiction is generally where the employee lives, not where the employee works. Current local rates span a range set by Maryland law and local action, and the Comptroller publishes locality-specific 2026 regular-method and percentage-method withholding tables.
Work location still matters for other payroll inputs. Maryland’s statewide minimum wage is $15.00 per hour for most covered employees, but Howard, Montgomery, and Prince George’s counties publish higher local minimums for 2026. That means an accurate Maryland payroll workflow may need both the employee’s residence for local income-tax withholding and the employee’s work location for applicable wage rules.
PAYROLL REQUIREMENTS CHECKLIST
Use this checklist to review Maryland’s current pay-statement rule and the separate payroll inputs that may affect withholding, employer taxes, insurance coverage, and wage calculations.
Covered private-sector employers must provide employees a written or online pay statement each payday. The requirement applies to private employers with at least one employee; Maryland state, county, and local government employers are outside this particular pay-statement law.
Include the employer’s name as registered with Maryland, address, and telephone number; payment date; beginning and ending dates of the pay period; hours worked unless the employee is exempt from federal and state overtime requirements; all rates of pay; bonuses, commissions, and other bases and amounts of pay; applicable piece rates and pieces completed; gross and net pay; and the amount and description of each deduction.
Use the current Maryland Employer Withholding Guide and the correct local withholding table. For Maryland residents, local income-tax withholding is tied to the county or Baltimore City where the employee lives rather than the employee’s work location.
Review Maryland unemployment insurance, workers’ compensation, statewide minimum wage, and any applicable county minimum-wage requirements separately from the pay-statement rule.
PAYROLL RECORDS IN PRACTICE
Maryland expressly permits the required pay statement to be provided in written or online form. Whatever delivery method is used, the statement must contain the information required by the state’s pay-statement law and identify the actual employer rather than merely the payroll-processing company.
Maryland’s Wage and Hour law requires employers to keep core records—including the employee’s name, address, occupation, rate of pay, amount paid, and daily and weekly hours—for at least three years. Keep enough payroll support to substantiate the hours, rates, additional compensation, deductions, gross pay, and net pay shown on each statement.
STATE + LOCAL WITHHOLDING — USE THE EMPLOYEE’S CORRECT LOCALITY
Maryland payroll withholding is not a single statewide percentage. Employers should use the current Comptroller instructions together with the employee’s withholding information, payroll frequency, wages, and applicable local jurisdiction. Maryland’s local income tax is based on where the employee lives, and the Comptroller publishes separate regular-method and percentage-method tables for the counties and Baltimore City.
Use the current Maryland Employer Withholding Guide for state income-tax withholding procedures, filing requirements, employer forms, and the calculation framework used for payroll withholding.
View 2026 withholding forms and guide →Select the locality where the employee lives to access the applicable 2026 regular-method or percentage-method withholding table. Maryland’s local income-tax system covers all 23 counties and Baltimore City.
View 2026 local rates and tables →LOCAL CONSIDERATIONS
Maryland payroll has two different local concepts that should not be confused. The local income tax generally follows the employee’s county or Baltimore City residence, while county minimum-wage rules apply according to their own coverage standards and the employee’s work situation. For small employers and bookkeepers, capturing both residence and work location can be important to an accurate payroll record.
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OFFICIAL MARYLAND SOURCES USED FOR THIS PAGE
This guidance is based on Maryland government sources. Pay-statement rules, tax tables, contribution rates, local wage requirements, and agency guidance can change, so recheck the applicable source before acting.
Primary state guidance on the October 1, 2024 pay-statement law, employer coverage, required statement fields, online delivery, and payroll-record retention.
Current employer withholding guide and forms for complying with Maryland income-tax withholding requirements.
Official 2026 county and Baltimore City local rates plus regular-method and percentage-method withholding resources.
Official 2026 unemployment-insurance contribution-rate schedule for experience-rated employers.
Official guidance stating that, with few exceptions, Maryland employers with one or more employees must provide workers’ compensation coverage.
Current statewide and county-specific minimum-wage guidance, including 2026 Howard, Montgomery, and Prince George’s County rates.
RESEARCH & REVIEW
This page is built from primary Maryland state and local government sources and is periodically reviewed against current agency guidance. We use official wage-and-hour guidance, tax instructions, unemployment resources, workers’ compensation materials, and local wage information whenever available.
FREQUENTLY ASKED QUESTIONS
ACCURATE RECORDS. SUPPORTING EVIDENCE.
Prepare a Maryland Pay Run, review the state and local payroll inputs before completion, and keep the applicable Maryland sources with your workflow.