Free Maryland payroll tax
calculator (and MD tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

Leave payroll to us.

We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: May 6, 2024

Our payroll tax calculator is here so calculating payroll taxes for Maryland employers is less of a heavy lift. Just enter wage and W-4 information for each employee at the top of this page and the calculator will do the rest.

Federal payroll taxes for Maryland employers

Small business owners across the United States are bound in unity by federal payroll taxes. So whether you’ve got friends in low places or friends just next door, all small business owners have to deal with the very same federal payroll taxes.

 

Though you can ask just about anyone for help, we’ve spared you the unnecessary extra effort by spelling out federal payroll taxes below. If you would like to go through each step in even more detail, check out our step-by-step guide here.

  • Calculate Gross Wages:
    • For your hourly employees, multiply their hours worked by their pay rate (and don’t forget to pay the higher rate for any overtime hours worked).
    • For your salaried employees, divide each employee’s annual salary by the number of pay periods per year.
    • Don’t forget to add in bonuses, commission, tips, etc to come up with your total gross wages.
  • Calculate Any Pre-Tax Deductions:
  • Deduct Federal Income Tax:
    • The biggest tax of them all, federal income tax ranges from 0% to 37%. We won’t get into the nitty-gritty in this guide, but you can find all the information you need on the IRS Publication 15-T.
  • Deduct (and Match) FICA Taxes:
    • Social Security Tax: Withhold 6.2% of each employee’s taxable wages up until they reach total earnings of $168,600 for the year. As an employer, you will need to match this tax one-for-one.
    • Medicare Tax: Withhold 1.45% of each employee’s taxable wages up until they have reached total earnings of $200,000 for the year. You as the employer will also need to match this tax. However, for salaries above $200,000, employees need to pay what’s called an Additional Medicare Tax of 0.9%. Only the employee is responsible for paying the Additional Medicare Tax.
  • Pay FUTA Unemployment Tax:
    • Your employees are not responsible for paying this tax. FUTA tax is the sole responsibility of the employer. You will need to pay 6% of the first $7,000 of taxable income for each employee per year, which means that your tax is capped at $420 per employee. However, if you pay your state unemployment taxes in full and on time, you are eligible for a tax credit of up to 5.4%, making your FUTA tax rate effectively 0.6%. This is a whopping 90% savings!
  • Subtract Any Post-Tax Deductions:
    • Most of your employees will be done by now, but some of them could be responsible for post-tax deductions such as court-ordered wage garnishments, child support, etc. If so, you will need to withhold these deductions from their paychecks.
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Maryland payroll taxes

When you think of Maryland income taxes, think progressive. Each county in Maryland charges a different rate, and they range from 2% to 5.75%. Plus, employees also have to take local income taxes into consideration.

Maryland state unemployment tax

For 2024, Maryland’s Unemployment Insurance Rates range from .3% to 7.5%, and the wage base is $8,500 per year. These rates, of course, vary by year.

 

If you are a new employer (congrats on starting your new business!) then you have a flat unemployment insurance rate of 2.6%. Maryland also provides a table of contribution rates for reference.

Maintaining compliance

Workers’ compensation is a must-have in most states, including Maryland. Learn how policies work, how this type of coverage protects employees from workplace injuries and occupational illnesses, and what employers should know in our guide to Maryland workers’ comp insurance.

Process those paychecks

In order to ensure your nickname is “World’s Best Boss” instead of “World’s Lamest Boss,” you need to be speedy in calculating each employee’s net pay so you can pass out those valuable paychecks. But while you’re cutting those checks, make sure to set aside whatever FUTA and FICA, and SUI taxes you need to pay. Pay quarterly federal tax filings through Form 941. FUTA also has to be paid each quarter, but you only have to fill out Form 940 once a year. Check out the online EFTPS payment system. You can also learn more about IRS filing due dates here.

Additional Maryland payroll tax resources

As if all that isn’t enough, we’ve got even more Maryland payroll tax resources here at your fingertips.

 

Comptroller of MarylandMaryland Income Tax Breakdown | Withholding Guide | Maryland Combined Registration Online Application | Employer Frequently Asked Questions | Unemployment Insurance Contribution Forms | More Info on Unemployment Insurance

More helpful payroll calculators

Maryland employers can use the calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions in a few clicks (and feel confident when cutting paychecks). However, employers sometimes have little more math they need to do. For instance, do you occasionally reward top-performing employees with bonuses? In the eyes of the IRS, these payments are considered supplemental wages and require taxes to be withheld. Also, if you have workers who occasionally move on, every so often you may need to spend time figuring out their final paychecks. So, if you could use a little more help with the number crunching, check out some of the calculators listed below.

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Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.