Maryland recently released the revised percentage method withholding instructions to reflect an increase in the maximum standard deduction, effective June 1, 2018 as enacted under SB 318 (Chapter 577).
The percentage method and wage-bracket withholding tables and rates inclusive of the supplemental withholding rates did not change. The updated Maryland Employer Withholding Guide reflects the increase in the standard deduction from $2,000 to $2,250, while the minimum standard deduction amount remains unchanged at $1,500. In addition, the new law amends the increase in the maximum value to $2,250 for all single taxpayers and $4,500 for all taxpayers filing jointly. The amended law also indexes the minimum and maximum values of the standard deduction beginning with tax year 2019.
The Maryland Revenue Division highly encourages reviewing the Maryland Employer Withholding Guide for additional information and year-end reminders.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.