Employer Withholding FAQs

1. How do I register for a business tax account?
2. Can I make business tax payments electronically?
3. When are my employer withholding reports due?
4. I did not receive my coupons for making my withholding tax payments. How can I get these coupons?
5. Can you send me a letter verifying my withholding account number?
6. Am I required to withhold taxes for domestic help?
7. How do I report zero tax due for my withholding account?
8. How do I reconcile my withholding account?
9. I received a withholding bill in the mail showing no balance due. Why
10. I have a credit on my withholding account. Can I use it to pay my next report?
11. I have a credit on my withholding account. Can I get this refunded?
12. I need to close my employer withholding tax account. How can I do this?
13. What are the requirements for Electronic Processing filing?
14. How do I change the name of my business for my tax records?

Employer Withholding Answers

1. How do I register for a business tax account

   You need to submit a completed Combined Registration Application. You can either download the paper version or register online. You can use this application to register the following business tax accounts:

   • Admissions and amusement tax account
   • Income tax withholding account
   • Sales and use tax license
   • Use tax account
   • Tire recycling fee
   • Transient vendor license
   • Unemployment insurance account

   
   

   You must have a federal identification number before you can register your business, unless you are only applying for a sales and use tax license. To apply for a federal identification number, visit the IRS Web site.

   You need to download the paper version to apply for the following:

   • Alcohol tax license
   • Tobacco tax license
   • Motor fuel tax account
   • Sales and use tax exemption


2. Can I make business tax payments electronically?

   Yes. You can file and pay employer withholding taxes and sales and use taxes online for free at the Maryland Tax Connect Portal. Electronic filing for businesses is fast, safe and easy. You can pay by direct debit and schedule debit payments up to the due date of the return.

   The Electronic funds transfer (EFT) program is another easy way to file reports and remit taxes. You must first register by completing Form EFT-1, Authorization Agreement for Electronic Funds Transfer.

   You can obtain the registration form and more information by calling Taxpayer Service at 410-260-7980, or 1-800-MD TAXES.

3. When are my employer withholding reports due

   You are required to fill out a MW506 form on an accelerated,  monthly, quarterly, seasonal or annual basis, depending upon the amount of tax withheld. You must file your MW506 form by the due dates, even if no tax was withheld. If no tax is due, file by telephone by calling 410-260-7225. See Filing Withholding Reports for more information about filing withholding reports, due dates, and filing frequency.

4. I did not receive my coupons for making my withholding tax payments. How can I get these coupons?

   You can obtain preprinted coupons by calling our Taxpayer Service Division at 410-260-7980 from Central Maryland or toll-free 1-800-MD TAXES (1-800-638-2937) from elsewhere, Monday - Friday, 8:30 a.m. - 4:30 p.m. Please have your account number available when you call.

5. Can you send me a letter verifying my withholding account number

   Yes. We can send you a confirmation letter if you call us at 410-260-7980 from Central Maryland or toll-free 1-800-638-2937 from elsewhere.

   When you call, please provide us with the following information:

   • account number
   • name of company
   • your name and telephone number

   
   
6. Am I required to withhold taxes for domestic help?

   No. You are not required by law to withhold; however, you may withhold as a courtesy to the employee. If taxes are not withheld, then the employee will need to make estimated tax payments. For more information see Taxable Wages.

7. How do I report zero tax due for my withholding account?

   Call our telefile line at 410-260-7225 or contact Taxpayer Service at 410-260-7980 or 1-800-638-2937 from elsewhere. Please be ready to provide:

   • the account number
   • type of tax (employer withholding, sales and use)
   • ending date of the report period

   
   

   You will receive a confirmation number when you call the telefile line. However, our representatives staffing the Taxpayer Service line cannot provide confirmation numbers.

8. How do I reconcile my withholding account?

   Use Form MW508 to reconcile the W2 and 1099 data filed on paper forms.

   For magnetic media filers, the reconciliation information is contained in the new "RE" record, which includes all fields from Maryland Form MW508.

   To obtain Form MW508, e-mail us at taxhelp@marylandtaxes.gov. You can also request the form by calling 410-260-7980 from Central Maryland or toll-free 1-800-MD TAXES (1-800-638-2937) from elsewhere, Monday - Friday, 8:00 a.m. - 5:00 p.m.

9. I received a withholding bill in the mail showing no balance due. Why?

   Usually this is because of a missing report. The upper left-hand corner of the notice will show the period of the missing report with a date.

   You must continue to file a return, whether or not you are withholding any income tax, until you give us written notice that you no longer have employees or no longer are liable to file the return.

10. I have a credit on my withholding account. Can I use it to pay my next report?

    You should show on your report (MW506) the proper amount of tax withheld. Send in the difference between the amount withheld and the amount of the credit. Please do not use the credit unless you have a notice from our office showing the credit.

11. I have a credit on my withholding account. Can I get this refunded?

    You must request in writing that you would like to receive a refund of the credit. The request must contain an explanation of how the credit occurred.

12. I need to close my employer withholding tax account. How can I do this?

    You can close your withholding account by calling Taxpayer Service at 410-260-7980 or 1-800-638-2937 from elsewhere in Maryland, Monday - Friday, 8:30 a.m. - 4:30 p.m.

    Please be ready to provide your

    • Name
    • Telephone number
    • Federal Employer Identification Number (FEIN)
    • Central Registration Number (CRN)
    • Reason for closing the account (out of business, no employees, etc.),
    • Closing date

    
    

    You can also close your account by completing and remitting both the Final Return Form MW506FR available in your withholding coupon booklet along with your final return.  Both forms can be located in your coupon books or on the business tax forms page.

13. What are the requirements for Electronic Processing filing?

    Employers having 25 or more W-2 wage statements to report are required by Maryland to file their annual reports electronically by using our online b-File application. b-File allows you to key in up to 250 W-2s and the MW508 year-end reconciliation form.

    Employers with less than 25 may elect to file paper returns. However, we encourage all employers to file electronically since it saves time and processing costs.

    For more information, see Year-End Reconciliation Requirements. or contact us by phone at 410-260-7150 or by e-mail at efilew21099help@marylandtaxes.gov.

14. How do I change the name of my business for my tax records?

    To change the name of your business, you must first report the change to the Maryland Department of Assessments and Taxation. (SDAT) by submitting a completed Trade Name Amendment or Cancellation Form with SDAT.

    Next, send us a letter or e-mail confirming the new business name and attach a copy of your completed Trade Name Amendment, Cancellation Form or Amended Articles of Incorporation.

    Please include the following in your correspondence:

    • Former business name.
    • New business name.
    • Business address and telephone number.
    • Nine-digit federal employer identification number (FEIN) or eight-digit Maryland central registration number.

    
    

    You can contact us by e-mail at taxhelp@marylandtaxes.gov or write to:

    Comptroller of Maryland
    Revenue Administration Center
    Taxpayer Service Division
    Annapolis, Maryland 21411

    To report other business-related changes with SDAT, see SDAT's Forms and Applications