Article
5 min read
Your Ultimate Guide to Maryland Payroll
US payroll
Author
Shannon Ongaro
Last Update
November 28, 2025
Table of Contents
Paying unemployment insurance
Withholding personal income tax from your Maryland employee
Paying your Maryland workers' compensation
Simplify US payroll tax compliance with Deel
Key takeaways
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Maryland payroll compliance requires employers to pay unemployment insurance (UI), withhold personal income tax (PIT), and provide workers’ compensation insurance.
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Employers can manage UI and PIT through secure online portals, while workers’ comp coverage must be purchased from a qualified Maryland carrier.
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Deel Payroll - US and Deel PEO offer full-service solutions to automatically calculate payroll taxes in Maryland, file state returns, manage withholdings, and ensure accurate remittance, tailored to Maryland rules but scalable nationwide.
Employers in Maryland are required to manage several state payroll obligations, including unemployment insurance contributions, personal income tax withholding, and workers’ compensation coverage.
Each of these requirements comes with specific rules, rates, and filing processes that businesses must follow to remain compliant.
This guide provides an overview of Maryland’s payroll responsibilities, outlining what employers must pay or withhold, how to file with the state, and how payroll platforms like Deel can simplify compliance.
Paying unemployment insurance
Unemployment Insurance (UI) is a critical aspect of Maryland payroll taxes, designed to provide temporary payments to individuals who are unemployed through no fault of their own.
As an employer, you are responsible for paying UI on behalf of your employees. To manage your Maryland unemployment insurance, the Maryland Department of Labor offers a convenient online portal that allows you to handle UI payments seamlessly.
For more detailed information on paying unemployment insurance, including eligibility criteria and reporting requirements, you can refer to the Maryland Department of Labor's UI Tax FAQs.
Deel Payroll - US
Withholding personal income tax from your Maryland employee
Another essential component of Maryland payroll taxes is withholding Personal Income Tax (PIT) from your employees' wages. PIT, also known as individual income tax or state income tax, is levied on the income of Maryland residents.
As an employer, it is your responsibility to deduct PIT from your employees' wages and remit the withheld amount to the state.
Managing PIT withholding is made easier through Maryland's online portal, where you can access valuable resources and make payments securely. For comprehensive guidance on handling PIT withholding, you can refer to the Comptroller of Maryland's information page.
Paying your Maryland workers' compensation
In addition to the payroll taxes mentioned above, employers in Maryland must also provide Workers' Compensation (WC) coverage for their employees.
Workers' Compensation is insurance that offers financial protection to employees in the event of a work-related injury or illness. This coverage is essential to ensure that your workforce is adequately protected and supported during challenging times.
To obtain Workers' Compensation insurance, you can purchase a policy from a qualified commercial carrier operating within Maryland. The Maryland Workers' Compensation Commission provides valuable information on their FAQ page for employers, guiding you in finding a qualified carrier that meets the state's requirements.
Please be sure that you verify that your workers’ compensation insurance is compliant with the state’s regulations for workers’ compensation.
Continuous Compliance™
Simplify US payroll tax compliance with Deel
While this article provides essential information on Maryland state payroll and unemployment taxes, payroll compliance and state requirements can be complex and may extend beyond what is covered above.
To streamline the process and ensure full compliance, companies can turn to Deel.
Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. By leveraging our vast expertise, businesses can optimize their US payroll processes and ensure compliance with state regulations.
For more information, request a demo from Deel today.
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.
Shannon Ongaro is a content marketing manager and trained journalist with over a decade of experience producing content that supports franchisees, small businesses, and global enterprises. Over the years, she’s covered topics such as payroll, HR tech, workplace culture, and more. At Deel, Shannon specializes in thought leadership and global payroll content.
