State guide
How to Register for Maryland Payroll Taxes
Let a dedicated tax manager register you with the Comptroller and BEACON, or use the step-by-step guide below.
Last updated:
At a glance
2 accounts plus FAMLI
1.0% to 2.6% new employer UI rate
$8,500 UI wage base
County tax 2.25% to 3.30%
Done for you
Comptroller, BEACON and FAMLI, set up together
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the state and gets your tax IDs for you. In Maryland that covers the Comptroller withholding account, your BEACON UI account and FAMLI registration.
- One tax manager who owns your file
- CRA and BEACON registrations filed with you
- FAMLI registration handled before 2027
- Every account and county rate confirmed before payroll
Hands-on help from a real person who knows Maryland employer accounts. Use it alone or with managed payroll.
Quick answer
Maryland payroll tax registration at a glance
Maryland splits payroll registration between the Comptroller and the Department of Labor. The Comptroller's Combined Registration Application (CRA) opens your employer withholding account, filed online through Maryland Business Express. Unemployment insurance is a separate account in the Maryland Unemployment Insurance Portal (BEACON).
New employers pay a UI rate between 1.0% and 2.6% on the first $8,500 of each employee's wages. Withholding covers state tax at no less than 4.75% plus a county rate for each employee.
Who must register
Who registers in Maryland
Three programs, three tests.
| Situation | Maryland requirement |
|---|---|
| You pay salaries, wages or compensation to employees, resident or nonresident | Open an employer withholding account through the CRA |
| You report wages and pay quarterly UI taxes | Register for a UI account in BEACON |
| One or more employees localized in Maryland | Register with the FAMLI program |
| One or more employees | Carry workers' compensation, with few exceptions |
| Any new hire | Report within 20 days of the hire date |
Registration steps
How to register in Maryland
The CRA first, then BEACON and FAMLI.
- File the Combined Registration Application online through Maryland Business Express to open your withholding account. One form can add several Maryland tax accounts.
- Register in BEACON. New employers without a Maryland UI account number select Register an Account and follow the prompts.
- Register with FAMLI if you have one or more employees localized in Maryland. Contribution withholding starts January 1, 2027.
- Collect Form MW507 from each employee for exemptions and withholding status.
- Report new hires within 20 days of the hire date.
Two agencies plus FAMLI
Maryland adds county tax and a new leave program
Withholding and UI come first. FAMLI and county rates follow close behind.
On your own
- Keeping business details identical across agencies
- Matching each employee to a county rate
- Getting ready for FAMLI contributions
With your PayAdvisors tax manager
- Your tax manager handles the CRA and BEACON with you
- We match each employee to a county rate with you
- You get a single calendar for every filing
Handled by your tax manager.
Prepare
What to collect first
Consistent details save rework.
- Your FEIN and the exact business name and address you use with every agency
- The date you first paid Maryland wages
- Each employee's county of residence for the local rate
- Whether anyone is a nonresident, which changes how local tax is withheld
- Proof of a workers' compensation policy from an insurer licensed in Maryland
Accounts
What you end up with
Two tax accounts and a FAMLI registration.
- A Comptroller withholding account for Forms MW506 and MW508.
- A UI employer account number in BEACON.
- A FAMLI registration ahead of 2027 contributions.
2026 numbers
Maryland payroll tax rates for 2026
Table A is in effect for 2026.
| Item | 2026 figure |
|---|---|
| New employer UI rate | 1.0% to 2.6% |
| UI taxable wage base | First $8,500 per employee |
| Experienced UI range | 0.30% to 7.50% (Table A) |
| Minimum state withholding rate | 4.75% |
| Local income tax brackets | 2.25% to 3.30% by county |
| State minimum wage | $15 an hour statewide. From July 1, 2026: Howard County $16.00; Montgomery County $18.00 (51+ employees), $16.50 (11-50) or $15.95 (10 or fewer); Prince George's County $15.30. |
Pitfalls
Maryland mistakes to avoid
Small filing errors cost the most.
- Mismatched business details. The state asks you to use the exact same name, address and structure with every agency.
- Missing quarterly UI reports. An employer with no taxable wages for a fiscal year because reports were not filed gets the 7.50% standard rate.
- Mailing a zero return. If you withheld nothing, do not mail Form MW506; file the zero report online or by phone.
- Skipping local tax for nonresidents. Nonresidents generally have no local rate, but an additional state tax is withheld at the lowest local rate of 2.25%.
- Charging employees for workers' compensation. The employer bears the entire cost, and deducting it from wages is not allowed.
Related duties
Other Maryland employer obligations
These start with your first hire.
- Workers' compensation. With few exceptions, every Maryland employer with one or more employees must provide coverage. See the Workers' Compensation Commission.
- FAMLI. Employers with one or more employees localized in Maryland must register, with withholding of contributions starting January 1, 2027.
- UI posters. Two required posters are sent to you when your account is established.
Filing calendar
Maryland deadlines after registration
UI is quarterly; withholding follows your schedule.
- UI quarterly report and payment: within 1 month of the end of each calendar quarter, filed and paid in BEACON.
- Late UI payments: interest of 1.5% per month on unpaid balances.
- MW506 filing frequency: Quarterly: under $700 of withholding per quarter. Monthly: more than $700 in any one quarter. Accelerated: $15,000 or more withheld in the prior year, with payment due within three business days of each payroll that brings accumulated withholding to $700 or more (a monthly waiver is available). Annual: under $250 a year, due January 31.
- MW506 due dates: Monthly and quarterly MW506 returns are due on the 15th of the following month.
- MW506 withholding returns: when a due date falls on a Saturday, Sunday or legal holiday, the return is due the next business day.
- MW508 annual reconciliation: due January 31, and employees get W-2s by January 31.
Official links
Maryland agency links
Official forms, rates and guidance.
Maryland registration questions
How do I register for Maryland payroll taxes?
File the Combined Registration Application through Maryland Business Express for withholding, then register for a UI account in BEACON. Register with FAMLI if you have employees localized in Maryland.
What UI rate does a new Maryland employer pay?
Between 1.0% and 2.6%, on the first $8,500 of each employee's wages.
How is Maryland withholding calculated?
State tax at no less than 4.75% for withholding, plus a county rate between 2.25% and 3.30% for 2026.
When are Maryland UI reports due?
Within 1 month of the end of each calendar quarter.
Do I need to register for FAMLI now?
Yes, if you have one or more employees localized in Maryland. Contribution withholding starts January 1, 2027.
I am the only employee of my S corporation. What do I need in Maryland?
If you pay yourself wages, open the withholding account and the BEACON UI account. A dedicated tax manager can complete the registrations with you as part of our S corp payroll package.
Does a one-person Maryland business need workers' compensation?
With few exceptions, any employer with one or more employees must provide coverage.
When are new hires due?
Within 20 days of the date of hire.
How is registration priced?
Most states issue two IDs, one for withholding and one for unemployment insurance. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this tax advice?
No. It summarizes official guidance from the Comptroller of Maryland, the Maryland Department of Labor, the Workers' Compensation Commission and the Department of Human Services. Ask your CPA or tax advisor about your own facts.
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Next step
Let us set up Maryland with you
A dedicated tax manager files your CRA and BEACON registrations with you, handles FAMLI and confirms every account before your first payroll.
About this guide
Last verified and sources
Last verified October 26, 2026 against the Comptroller of Maryland, the Maryland Department of Labor, the Workers' Compensation Commission and the Department of Human Services. This guide is general information, not tax or legal advice.
Related
- State payroll tax registration (all states)
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- Iowa payroll tax registration guide
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- Arkansas payroll tax registration guide
- New Mexico payroll tax registration guide
- West Virginia payroll tax registration guide
- Delaware payroll tax registration guide
- Washington, DC payroll tax registration guide
- Payroll setup for new businesses
- Payroll tax filing and compliance
- S corp payroll
- S corp payroll setup checklist
Sources
- Maryland Business Express, Apply for Maryland Tax Accounts and Insurance
- Maryland Department of Labor, Division of Unemployment Insurance, Tax Rates and Quarterly Reporting
- Maryland Department of Labor, Division of Unemployment Insurance, New Employers
- Maryland Department of Labor, Instructions for Using the Maryland Unemployment Insurance Portal (BEACON)
- Comptroller of Maryland, Withholding Tax Facts January 2026 - December 2026 (PDF)
- Maryland Workers' Compensation Commission, FAQs for Employers (PDF)
- Maryland Department of Human Services, New Hires FAQs
- Maryland Department of Labor, Maryland Minimum Wage and Overtime Law
- Comptroller of Maryland, 2026 Maryland Employer Withholding Guide (PDF)
- Comptroller of Maryland, Filing Deadlines and Due Dates