Country Payroll Guide USA – Maryland

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Key Facts

Capital
Annapolis
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 6%

Contributions

Employers

Unemployment (State)
Unemployment (State) - 2.2% to 13.5%
Unemployment - New Employer (State)
Unemployment - New Employer (State) - 2.6%
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employment Cost
Total Employment Cost - 15.85% to 27.15%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% +0.9% tax on over $200k (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employee Cost
Total Employee Cost - Up to 14.55%

Minimum Wage

Minimum Wage
The minimum wage in Maryland is 11.60 to 11.75 USD per hour.

Payroll

Payroll Cycle
Bi-Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Single Filers tax rate (Federal) (1)
0 - 9,875 USD - 10%
Single Filers tax rate (Federal) (2)
9,876 - 40,125 USD - 12%
Single Filers tax rate (Federal) (3)
40,126 - 85,525 USD - 22%
Single Filers tax rate (Federal) (4)
85,526 - 163,300 USD - 24%
Single Filers tax rate (Federal) (5)
163,301 - 207,350 USD - 32%
Single Filers tax rate (Federal) (6)
207,350 - 518,400 USD - 35%
Single Filers tax rate (Federal) (7)
Over 518,401 USD - 37%

State Tax (Single Filer)

State Tax (Single Filer) (1)
0 - 999 USD - 2%
State Tax (Single Filer) (2)
1,000 - 1,999 USD - 3%
State Tax (Single Filer) (3)
2,000 - 2,999 USD - 4%
State Tax (Single Filer) (4)
3,000 - 99,000 USD - 4.75%
State Tax (Single Filer) (5)
100,000 - 124,999 USD - 5%
State Tax (Single Filer) (6)
125,000 - 149,999 USD - 5.25%
State Tax (Single Filer) (7)
150,000 - 249,000 USD - 5.5%
State Tax (Single Filer) (8)
Over 250,000 USD - 5.75%

Working Hours

General Working Hours

40 hours per week, 8 hours per day.

Overtime

It is required to pay employees at a rate of 150% of their regular payment for all hours worked exceeding their 40 weekly hours, unless the employee is exempt. This is in accordance with the Federal Labor Standard Act.

 

Leave

Paid Time Off

There is no legislation relating to paid time off.

Public Holidays

12 public holidays.

Sick Days

There are no statutory laws on sick leave in Maryland, however, an employer may be obligated to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year or certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).

Employers are required to maintain the employees’ health benefits during their leave and keep their job open.

Maternity Leave

The Family Medical Leave Act (FMLA) provides eligible employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons. Employers are required to maintain the employees’ health benefits during their leave and keep their job open.

Paternity Leave

Paternity leave falls under the FMLA.

Parental Leave

Six weeks of unpaid parental leave, taken with the first year of the child’s birth.

Other Leave

Not applicable.

Termination

Termination Process

Maryland follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason.

Notice Period

Notice for the employee and employer are not required.

Severance Pay

There is no legislation relating to severance pay.

Probation Period

Six months.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.