How Are My Tax Rates Determined?
Maryland employers are assigned one of three different types of tax rate: the new account rate, the standard rate, or the experience (earned) rate.
- New Account Rate
"New Employer" means an employing unit that does not qualify for an earned rate. The tax rate for a new employer will be the average of the rates for all employers in the State during the last five years. Construction companies headquartered in another state will be assigned a tax rate that is the average of the rates for all construction employers in Maryland during the year for which the rate is assigned.
- Standard Rate
If an employer is eligible for an earned rate, but has no taxable wages in a fiscal year (July 1 to June 30) because the employer failed to file its quarterly tax and wage reports, the employer is assigned the standard rate. The standard rate is the higher of the highest rate from the "Table of Basic Rates" or the employer's computed basic rate plus any surtax rate.
- Experience (Earned) Rate
After an employer has paid wages to employees in two fiscal years (July 1 to June 30) prior to the computation date (July 1st prior to the rated year), he/she is entitled to be assigned a tax rate reflecting his/her own experience with layoffs. If the employer's former employees receive benefits regularly which result in benefit charges, the employer will have a higher tax rate. On the other hand, firms which incur little or no benefit charges will have lower tax rates.
Get Help from an Experienced Employment Law Attorney
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Additional Employment Law for Employees Articles
- Maryland Employment Law
- What Is The Minimum Age For Employment?
- How Can A Minor Obtain A Work Permit?
- Are There Restrictions On The Hours A Minor May Be Employed?
- Where Can I Get Additional Information On Child Labor Laws?
- What Is The Law Regarding Paydays?
- Am I Entitled To Rest And Meal Breaks?
- What Is The Law Regarding Overtime?
- Must My Employer Award Benefits?
- What is the minimum wage in Maryland?
- What Is The New Hire Law?
- What Information Must I Report?
- How Do I Report?
- As An Employer With Employees In More Than One State, Where Do I Report?
- Is There A Penalty For Not Reporting?
- Who Do I Contact If I Have Questions About New Hire Reporting?
- When Should I File My Initial Claim For Unemployment Benefits?
- What Information Do I Need To Have Before Filing A Claim?
- Can I File For Benefits If I Am Working Part-Time?
- How Much Can I Receive In Benefits?
- How Do I File Continued Claims?
- Are Unemployment Insurance Payments Taxable?
- Where Can I Call To Get More Information On Unemployment Insurance?
- How Does My Business Register As A "New" Employer?
- What Wages Are Taxable?
- What Is A "Reimbursable" Employer?
- How Does My Business File Quarterly Reports And Returns?
- How Does The Maryland Office Of Occupational Safety And Health Operate?
- What Happens If Violations Are Found During An Inspection?