Employer of Record for Maryland

In Maryland, workers’ rights are protected by numerous employment and labor laws, at both the state and federal level.  As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race. Here are the key things you need to know about hiring in Maryland.

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Do I Need an EIN or Payroll Tax Number To Employ in Maryland?

Yes, if you want to employ workers in Maryland, you will need both a federal Employer Identification Number (EIN) and a Maryland-specific employer payroll tax account.

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Working Hours in Maryland

Most employers follow the federal standard of a 40-hour work week, typically structured as 8 hours p/d over five days.

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What Is Considered Full-Time Employment in Maryland?

There’s no official state definition of full-time employment in Maryland, so employers typically define it based on company policy or industry standards. Generally, full-time status is considered to be working between 30 and 40 hours per week.

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Probation Period in Maryland

In Maryland, there is no state-mandated requirement for a probationary period for new employees. However, many employers choose to implement probationary periods as part of their onboarding process. These periods typically range from 30 to 90 days.

Minimum Wage in Maryland

Maryland's state minimum wage is $15.00 per hour for all employers, regardless of size. 

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Maryland Anti-Discrimination Laws

Maryland has robust anti-discrimination laws, enforced by the Maryland Commission on Civil Rights (MCCR) and aligned with federal protections, to prevent workplace discrimination. These laws prohibit discrimination based on race, color, religion, sex, age, national origin, marital status, sexual orientation, gender identity, disability, genetic information, and family responsibilities.

In Maryland, the payroll cycle is not strictly defined by state law, so employers have flexibility in setting payroll schedules. Employers must pay consistently. Most employers use a semi-monthly or weekly pay structure.

Employment taxes and statutory fees affect both your payroll and your employees’ paychecks in Maryland. Understanding the tax obligations for both employers and employees is crucial when operating in [state's] business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Maryland. Note that employees may be liable for additional local taxes in certain cities and jurisdictions.

Employer Tax Contributions

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Employee Payroll Tax Contributions

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Tax Due Dates in Maryland

Unemployment Insurance:

• Employers remit Maryland state unemployment insurance taxes quarterly to the Maryland Department of Labor.

Federal Income and FICA Taxes (Social Security and Medicare):

• Employers are required to deposit federal income tax, Social Security, and Medicare contributions to the IRS either on a semi-weekly or monthly basis, depending on their total tax liability.

Individual income tax:

• 1st Quarter: April 15
• 2nd Quarter: June 15
• 3rd Quarter: September 15
• 4th Quarter: January 15 of the following year

If these dates fall on a weekend or holiday, the deadline is extended to the next business day.

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Pension in Maryland

Maryland’s pension regulations provide retirement benefits to public employees, including state and local government workers, teachers, and law enforcement officers. Private-sector employers in Maryland are not required to offer pension plans, but if they do, they must comply with federal standards under the Employee Retirement Income Security Act (ERISA).

As part of our global employment services, Playroll can create a globally compliant and competitive compensation package that can help you attract and retain top talent in the US.

Employee Benefits For Maryland

Competitive benefits are essential for attracting and retaining top talent in Maryland. Offering the right package helps employees feel valued and motivated. Our benefits experts understand the local labor market's trends, requirements, and expectations, ensuring your employees feel valued and supported. Common benefits in our Maryland packages include:

• Pension or 401(K)
• Vision Insurance
• Life Insurance
• Medical Insurance
• Dental Insurance
• Health Savings Plan (HSA)
• Flexible Spending Account (FSA)

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Are Employers Required To Provide Health Insurance in Maryland?

As per the federal Affordable Care Act (ACA), employers with 50 or more full-time employees nationwide are required to provide health insurance that meets minimum essential coverage standards. There is no state-specific legislation to mandate health benefits where there are less than 50 full-time employees.

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Do Part-Time Employees Get Benefits in Maryland?

In Maryland, whether part-time employees receive benefits depends on the type of benefit and the employer's policies, as there is no state mandate requiring all benefits for part-time workers:

• Part-time employees are eligible for paid (or unpaid, for smaller employers) sick and safe leave.
• Maryland requires employers to provide workers' compensation coverage for all employees, including part-time staff.
• Part-time employees in Maryland may qualify for unemployment benefits assuming they meet eligibility requirements based on their earnings and work history.

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Are Employers Required To Offer 401k in Maryland?

In Maryland, employers are not required to offer a 401(k) retirement plan, but many choose to provide it as a benefit to attract and retain employees. If an employer offers a 401(k), they must comply with federal regulations under the Employee Retirement Income Security Act (ERISA), which includes fiduciary responsibilities, providing plan information to participants, and meeting specific funding standards.

Is Vacation Leave Mandatory in Maryland?

No, Maryland does not require employers to provide paid or unpaid vacation leave. Vacation leave policies are typically set by individual employers and outlined in company handbooks or employment contracts.

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Mandatory Leave Policies in Maryland

Below are the mandatory leave entitlements for full-time employees in Maryland.

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Paid Time Off in Maryland

In Maryland, the only mandated paid time off is for voting leave, where proof of voting is required, and for sick leave. Employers with 15 or more employees must provide paid sick and safe leave.

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Maternity Leave In Maryland

• Federal Family and Medical leave provides unpaid leave for employees who have given birth, adopted or are fostering a child. To be eligible, an employee must work for an employer with at least 50 employees.
• Maryland Parental leave is for employers with between 15-49 employees. This leave provides employees with 6 weeks unpaid leave for employees who have given birth, adopted or are fostering a child.

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Paternity Leave In Maryland

• Under the Federal Family and Medical leave Act male employees who are fathers to newborns, adopted or fostered kids are eligible for unpaid leave if they work for an employer who has more than 50 employees.
• Under Maryland Parental leave males employees who are father to newborns, adopted or fostered kids are eligible to 6 weeks unpaid leave if they work for an employer who has between 15-49 employees.

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Sick Leave In Maryland

• In Maryland, sick leave is covered under the Maryland Healthy Working Families Act (HWFA), which requires employers to provide sick and safe leave for qualifying employees.
• Employees who work at least 12 weeks are eligible.
•  Employers with more than 15 employees must provide paid sick leave to their employees, while employees with less than 15 employees provide unpaid sick leave.
• The leave is accrued at 1 hour of leave for every 30 hours worked.

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Military Leave in Maryland

In Maryland, military leave provisions are primarily governed by federal law, particularly the Uniformed Services Employment and Reemployment Rights Act (USERRA). Maryland law requires employers to provide unpaid leave to employees who are members of the military of the U.S. Armed Forces for military training or active duty. The Maryland Deployment Leave Law also grants unpaid leave for employees with family members who are leaving for or returning from active duty outside the U.S.

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Jury Duty in Maryland

Employers must allow employees to sit for jury duty when they are called to. The leave is unpaid and the length of time depends on the matter in court. 

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Parental Leave In Maryland

In Maryland, parental leave is covered by both federal and state laws, with benefits depending on employer size and employee eligibility. Under federal law, employers with more than 50 employees must provide unpaid leave for parental care, eligibility and length of the leave are by federal regulations (check out our federal hiring guide for more information!) Maryland state law requires employers with 15 to 49 employees to offer up to 6 weeks of unpaid leave for the birth, adoption, or foster placement of a child, with similar eligibility criteria.

When it comes to terminating employment in Maryland, understanding the legal obligations regarding severance pay and contributions is essential. Below is a detailed overview of the key considerations for both employers and employees.

Termination Process in Maryland

Maryland is an at-will employment state, allowing either the employer or employee to end the employment relationship at any time, with or without cause or notice, unless restricted by law, a contract, or a collective bargaining agreement. Termination based on protected characteristics, such as race, color, national origin, sex, religion, disability, age, marital status, sexual orientation, gender identity, or genetic information, is prohibited under federal and state anti-discrimination laws. Additionally, employees cannot be terminated for engaging in protected activities, like filing a discrimination complaint, reporting safety violations, or whistleblowing.

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Notice Period in Maryland

There is no requirement for a notice period before terminating an employment relationship, unless specified in an employment contract or company policy. 

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Severance in Maryland

Maryland law does not require employers to provide severance pay unless stipulated in an employment contract or company policy. However, Employers must pay all wages due for work performed before termination on or before the next regular payday. This includes any earned wages, commissions, and, depending on company policy, accrued vacation time.