Maryland registration and tax info

What you need to do

• Add a new work address in Gusto for a different state, and;
• Hire an employee and assign them to that address.

Cost and timeline

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

What the process looks like

1. You give us some basic business information.
2. Gusto and CorpNet will check your info.
3. Your registration is usually submitted within 3–5 business days.
4. Watch for mail with your tax account numbers and rates from the state. The state usually sends your tax account numbers and rates directly to you.
   
   • Heads up: If CorpNet doesn’t enter some information into Gusto, they can show you how to do it yourself.

Third-Party Agent (TPA) authorization reminder

Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

1. Sign in to Gusto as an admin.
2. Go to Taxes & compliance and click Tax setup.
3. Under “[State name] Tax Setup”, click Have us register for you.
   • The state will only show up if you’ve added a company work address there and assigned an employee to it.
4. Look at the price, process, and how long it will take.
   
   • We will not charge you until you send in your order.
5. Click Continue.
6. Answer a few questions to see if you're eligible.
   • We can only register for you if you do not already have a state account.
7. Click Save & continue.
8. Enter some company information (we'll fill in what we already know).
9. Click Save & continue.
10. Tell us who the responsible party is. This is the person in charge of the company’s tax matters and good standing. 
    • If you're a nonprofit and need help, check our FAQs below.
11. Click Save & continue.
12. Enter some state-specific operational information.
13. Click Save and continue.
14. Review all info carefully. Mistakes can delay things. 
    • Heads up: State and local agencies might add fees or take longer than expected. CorpNet will notify you if that happens.
15. Check the box to confirm all your info is correct and agree to the Terms of Service.
16. Click Send registration order.
    • We’ll email you with order updates and add the cost to your next monthly bill.

Some reminders

• You need to give Gusto third-party access (TPA) to your tax accounts. CorpNet doesn’t do this for you.
  • Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.
• Watch your mail for registration info. The state will send you your tax account numbers and rates.
  • CorpNet can help you enter tax info into Gusto, but they won’t do it for you.

When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps, which include:

• Reviewing registration details
• Any other state-specific instructions

Before your order is done, use the link in the state registration email from Gusto to check your order's status.

You can also check the status in your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's section.
3. Click Check the status of your registration.

If your order is still in progress, you can cancel from your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's section.
3. Click Check the status of your registration.
4. On the right-side of the page, under “Changed your mind?”, click Cancel your order.
5. Let us know why you're canceling.
6. Click Cancel your order.

If you were already charged, you'll get a refund in a few business days.

If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].

Q: Can I run payroll before my registration is done?

A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.

Important reminders

• We cannot submit tax payments or filings until all tax account numbers are added.
• If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
• If you’re only registering for unemployment tax and don’t have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?

A: No, you need a FEIN in Gusto to get registration help for state taxes.

If your business is merging or being acquired, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.

Q: Where can I find my tax information?

A: You can find your tax info in several places: 

• In Gusto: Go to Taxes & compliance and click Tax setup, then scroll to state tax setup.
• In CorpNet: Create an account and sign in to see your info.
• In your state’s online portal: Find your account details there.
• By mail: Some agencies send tax info by mail. If that happens, CorpNet will let you know, and you'll need to enter this info in Gusto.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: What if I'm not liable for unemployment tax yet?

A: If you want CorpNet to start setting up an unemployment account number before you're liable, you can:

• Use today’s date as the first date the employee(s) in the new state will be paid. 
• Enter the start date of the quarter you expect to meet the liability threshold.
  • Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: Can CorpNet help if the responsible party is international without an ITIN or SSN?

A: CorpNet might be able to help. Contact them at [email protected] or call 1(888) 449-2638.

Q: Why can’t I enter 0% ownership for the responsible party or add a commercial owner?

A: Some states have a 1% minimum for the responsible party ownership percentage. These states include: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.

You’ll need to place registration orders directly with CorpNet outside of Gusto or register directly with the agency.

Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact CorpNet for help at [email protected] or call 1(888) 449-2638.

Q: Does CorpNet help with giving Gusto third-party access (TPA) for tax payments?

A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Q: Does CorpNet help close state tax accounts?

A: No, you'll need to close the tax account yourself.

• Comptroller of Maryland – income tax withholding
• Maryland Department of Labor, Licensing and Regulation (DLLR) – unemployment tax  

You need to register with the Comptroller of Maryland to get:

• Your Central Registration Number (CRN) for income tax
• Your withholding deposit schedule (filing frequency)
• Your Employer Account Number for unemployment tax

Register online, and you should get your tax account information in 3-5 business days. Remember this timeline when planning your first payroll for Maryland employees.

If there are any problems with the information you submit, it might take longer.

Register with the Comptroller of Maryland

Starting February 6, 2024, business taxpayers in Maryland can use a new service called Maryland Tax Connect from the Office of the Comptroller.

• Read this information about the new Maryland Tax Connect Portal. Use the resources on the page to help you register and learn more.

If you get stuck while registering, try the agency's step-by-step guide or watch their walkthrough video. 

1. Head to Maryland Tax Connect online.
2. Under “Quick Links”, click Register a Business in Maryland - Combined Registration Application.
3. Read the Terms and Conditions of Service, and click the checkbox at the bottom of the page to agree.
4. Click Next.  
5. Enter your business contact information.
6. Enter your business demographic information (i.e. business FEIN, entity type, ownership type, legal business name, trade name, mailing address, phone number, etc).
7. Select a reason for applying (i.e. ‘New Business’).
8. Check the boxes for Employer Withholding Tax Account and Unemployment Insurance—complete any remaining applicable fields.
9. Complete the remaining fields and the rest of registration:
   • Provide the NAICS code for your business activity.
     • Click on the Help Icon for resources.
   • For Related Parties: Enter at least two owners, partners, corporate officers, trustees, or members related to the business.
     • If you're registering as a Sole Proprietorship, only one name is required.
   • You do not need to request paper coupons in the mail.
   • Complete the Signatory and Power of Attorney page.
     • This must be done by the business owner or authorized preparer.
   • Carefully review the "Summary Page" to confirm the information entered is accurate.
   • On the Signature Page, select Yes to acknowledge that you're authorized to submit CRA on behalf of the entity.
10. Print or keep your confirmation number for future reference. You'll get one if your submission is successful.
    • After you successfully submit your business application, you'll get an acknowledgement email.

If you haven't received your CRN, withholding deposit schedule (filing frequency), and Employer Account Number within 7 business days, you can get them sooner by contacting the agency. Call them at (800) 638-2937 or email them at [email protected] or [email protected].

• Your CRN usually starts with a 0, 1, 2, or 3.
• Your Employer Account Number usually starts with 00 or 01.

Do not forget to give Gusto third-party access (TPA) so we can keep some Maryland tax information updated and help fix tax problems.

Enter the tax account information in Gusto

Once a valid Maryland work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Maryland Tax Setup" headline and select Manage taxes.
3. Enter your withholding account number and agency-assigned tax deposit schedule (“filing frequency”).
   • Your CRN usually starts with a 0, 1, 2, or 3.
   • You'll be given one of these filing frequencies (or withholding deposit schedules): accelerated, monthly, quarterly, or annual.
     • Most new employers have a monthly or quarterly filing frequency, based on what was chosen during registration.
4. Enter your Employer Account Number (for unemployment) and unemployment rate.
   • Your Employer Account Number will likely start with 00 or 01.
     • If you do not know your unemployment account number, call the agency at 1(800) 492-5524 and press 1 and then 6. 
   • Enter your agency-assigned unemployment rate.
     • If you do not know your unemployment rate, call the agency at 1(800) 492-5524 and press 1 and then 6. 
     • If you do not have your assigned rate yet, enter the new employer rate for Maryland in Gusto in the meantime. Update the rate once you receive it.

If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

Heads up: County taxes are combined with state income tax

In Maryland, county taxes are paid and filed together with state income tax in one lump sum to the Comptroller of Maryland. So, when payroll is run, we’ll automatically add the county-specific tax amount (based on an employee’s home address) to the state income tax amount.

• Reminder: Maryland county taxes are based on where an employee lives, not where they work.

If you or an employee compare the income tax from a Gusto paystub to another provider’s, Gusto’s withholding might look higher because the previous provider separated county taxes. Look at your combined withholdings from previous providers before comparing to a Gusto paystub.

Additional resource

Employees and employers can get tax estimates and find the current year's tax rates by using the agency's estimated payment and withholding calculators.

Find your CRN number and tax deposit schedule ("filing frequency")

If you've run payroll in Maryland before, you can find your eight-digit CRN and tax deposit schedule by:

• Looking at the letter you got from the Comptroller of Maryland after registering, or
• Calling the agency at (410) 260-7980.

You can also find your CRN on your Withholding Tax Returns (Form MW506 or MW508) that the agency may have sent

CRN format

Your CRN will usually start with a 0, 1, 2, or 3.

Tax deposit schedule changes

The agency may, at times, decide your business needs a different deposit schedule. If this happens, they'll send an additional letter with your new deposit schedule. You can update this in the Taxes & Compliance > Tax Setup section of Gusto. 

Employer Account Number

You can find your 10-digit Maryland Employer Account Number on:

• Any notice received from the MD Department of Labor, Licensing and Registration (Division of Unemployment Insurance).
• Form DLLR/DUI 15; your Unemployment Insurance Quarterly Contribution Report 
• The top of your annual tax rate notice that's mailed by the agency in December of each year.
• The agency website. 

Your account number will usually start with 00 or 01. 

Unemployment tax rate

Your MD Unemployment Tax Rate appears in the “Contribution Rate” box of your current year's Experience Rate Notice from the Maryland Department of Labor. 

• If you do not know your rate, call the agency at (800) 492-5524 and press 1, and then 2. 
• If you do not have your assigned rate yet, enter the new employer rate for Maryland in Gusto in the meantime. Update the rate once you get it.

Do not forget to give Gusto third-party access (TPA) so we can keep some Maryland tax information updated and help fix tax problems.

Once a valid Maryland address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Maryland Tax Setup" headline and select Manage taxes.
3. Enter the applicable account number(s), tax deposit schedules, and rate(s).

To become your agent, a notarized form needs to be submitted to the agency. This form must authorize Gusto as your payroll provider. To make this easy, we’ll prepare the necessary document for you to e-sign in Gusto. Then, we’ll submit the form to the agency.

Add Gusto as your Power of Attorney (POA) agent in Maryland

This form will only populate for you to sign once all the below has been completed in Gusto:

• A company work address is added in MD.
• A MD work address is assigned to an employee's work location in their profile.
• The MD state tax information is filled out in the Taxes & compliance > Tax setup section of your account.
• The MD employee's state-specific tax elections have been made.

To sign the form in Gusto:

1. Have the company signatory sign in to their profile in Gusto.
2. Click the applicable MD to do item from your Home page.
3. E-sign the auto-generated authorization form in Gusto.
   • For general information about the authorization form we'll submit, MD Form 548P, click here. 

We’ll submit this to the agency directly on your behalf—you’re all set for now. 

To keep your Maryland withholding information up-to-date and help troubleshoot tax issues, we'll need you to authorize Gusto with the Comptroller of Maryland.

The “Administrator” on the Maryland Tax Connect account must follow the steps below to give Gusto access. If you run into any issues, follow this step-by-step guide from the agency:

1. Log into Maryland Tax Connect.
2. Open the “Profile Information” dropdown
   • Select "Manage Authorized Users" 
3. Click Add New Authorized User. 
4. Enter Gusto’s User ID and Registration Confirmation Number:
   • User ID: Gusto
   • Registration Confirmation Number: TU00000346714
5. Click next.
6. Under the “Taxpayer Authorizations” section, select your company/account by clicking the checkbox in the “view” column on the left. 
   • Important: You'll need to grant access to both the “Withholding/Filing”, and the “Withholding/Reconciliation” accounts.
7. Enter a start date —we recommend using the first day in the quarter you started running payroll with Gusto.
   • Example: If 3/4/24 was your first payroll with Gusto, enter 1/1/24 as the start date (the beginning of Quarter 1).   
   • Do not enter an end-date at this time. 
8. In the Assignments section, select “Taxpayer Functions” under “Authorize Manually”.
   • Select the following as the “Authorized Taxpayer Functions”:  
     • Document upload service request 
     • File returns for all taxes
     • Make payments for all taxes
     • View tax type specific notices for all taxes
   • Click ok.
9. In the “Assignments” section, select “Account Authorizations” under “Authorize Manually”
   • Select/assign the Account Type as “Withholding Tax”. 
   • Enter a start date —we recommend using the first day in the quarter you started running payroll with Gusto.
     • Example: If 3/4/24 was your first payroll with Gusto, enter 1/1/24 as the start date (the beginning of Quarter 1).   
     • Do not enter an end-date at this time. 
   • Click “Account Functions” and select the following as the “Account Authorizations”:  
     • File Returns
     • Make Payments
     • View Tax Type Specific Notices
   • Click ok.
10. After selecting all the assignments (Taxpayer Functions & Account Authorizations), click Save.
    • Reminder: Gusto will only need access to the Withholding account; we do not need access to the other accounts (Sales and Use, Motor Fuel, etc.). 
11. After clicking save, you'll see a New User Confirmation page—double-check that all the Taxpayer Functions and the Account Functions match what's outlined above, and click Confirm.

After you have successfully granted access to the New Authorized User, you'll see a confirmation message. Both the Administrator and Authorized User will receive a confirmation email with Authorization Information.