Maryland Tax

For Maryland residents, you specify the employee's tax locale, status, and exemptions.

Deltek Modification Date - 1/25/13

Enter the following field information for residents of Maryland on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Code	This is the withholding code, as set up on the Payroll Withholding Setup form, associated with the appropriate Maryland tax locale. Maryland tax locales M1, M2, M3, M4, and M5 are described in the next section.
Status	Enter the appropriate code in the Status field. The following filing status is for non-resident employees:   Filing Status   Locale Single / Married Filing Separately   Married Filing Joint / Header of Household County M1 A   1 Non-Resident The following filing statuses are for withholdings associated with the MD county and tax locale:   Filing Status   Locale Single / Married Filing Separately   Married Filing Joint / Header of Household County M1 B   2 Baltimore City M1 C 3 Allegany M1 D 4 Anne Arundel M1 E 5 Baltimore County M2 F 1 Calvert M2 G 2 Caroline M2 H 3 Carroll M2 I 4 Cecil M2 J 5 Charles M3 K 1 Dorchester M3 L 2 Frederick M3 M 3 Garrett M3 N 4 Harford M3 O 5 Howard M4 P 1 Kent M4 Q 2 Montgomery M4 R 3 Prince George’s M4 S 4 Queen Anne’s M4 T 5 St. Mary’s M5 U 1 Somerset M5 V 2 Talbot M5 W 3 Washington M5 X 4 Wicomico M5 Y 5 Worcester
Exemptions	Enter the total number of exemptions (from 0 to 99) claimed by the employee on Form MW-507. This figure includes: Personal exemptions for self and spouse not claimed on other Form MW-507. Additional exemptions for age and blindness. Exemptions for dependents. If the employee did not submit Form MW-507, enter 1 for the number of exemptions.
Other Exemptions	Maryland’s tax calculations do not use the Other Exemptions field.

Supplemental Wages

Supplemental (bonus run) wages are taxed at 5.75% plus the county percentage rate.

Automatically Calculated Variables

Deltek automatically computes the following variables.

Standard Deduction

The Standard Deduction is a variable deduction applied to all employees. It is 15% of the employee's annual gross wages, subject to a minimum of $1,500 and a maximum of $2,000.

Allowance

The Allowance is based on the number of exemptions entered in the first Exemptions field. It is determined by multiplying the number of exemptions by $3,200.

Low Income Exemption

The Low Income Exemption applies to employees whose annualized gross wages are less than but not equal to $5,000. No withholding is applied in this case.

How Deltek Calculates Tax

To calculate an employee's Maryland State tax, Deltek does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's Standard Deduction, Allowance, 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the net income tax by applying Tax Calculation Method 1 to the taxable income.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.