Maryland Salary Paycheck Calculator

Use Maryland Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.

What Are Payroll Taxes?

Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.

The Social Security tax is paid by both the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.

Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.

Each state also has specific state payroll taxes that must be withheld and paid.

Maryland Payroll Taxes

There are two Maryland employer payroll taxes to keep track of in addition to Social Security and Medicare. 

Employers pay into a state unemployment insurance tax account (SUTA), while employees pay state income tax. 

SUTA

Under SUTA, companies must allocate a portion of their payroll taxes toward the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.

In Maryland, SUTA is paid on the first $8,500 of annual employee income, as of 2022. Rates are ratio-based and calculations are based on the gap between the amount of unemployment insurance paid from the employer’s account and SUTA taxes paid in previous periods. The maximum rate is 10.5%.

The rate for new employers is 2.3%, and for new foreign contractors it’s 5.4%. You can find more information on the Maryland Department of Labor website. 

State Income Tax

Maryland state income tax withholding rates are based on income level, as detailed on the Comptroller of Maryland website. 

Paying Payroll Taxes

Just as you need an EIN to pay federal payroll taxes, in Maryland you’ll need to register for state withholdings with the Comptroller of Maryland, and for SUTA taxes, with the Department of Labor. 

To pay these taxes you’ll just log into these accounts. Withholding taxes are due within three days of the payroll date, monthly, quarterly, or annually, depending on the total withheld. SUTA taxes are due quarterly. 

Your municipality may also require certain tax registrations, so be sure to check with your local government for requirements.

Using a Payroll Tax Service

In Maryland, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.  

You’ll just send over your digital timesheets and relevant information and the service provider will take care of the calculations, payments and taxes, freeing you up to focus on growing your business. 

We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!