Toast Payroll: Tax Management in Maryland

In this Article:

• Tax Management Overview
  • Taxes and Forms Toast Payroll Supports/Remits in Maryland
  • Taxes We Don't File
  • Where to Find Copies of Tax Filings Processed in Toast Payroll
• Register for Your ID - Withholding and Unemployment Taxes
  • Information You'll Need to Register
  • How to Register
• Find Your ID and Rate - Already Registered
  • Income Tax Withholding
  • Unemployment Tax
  • Unemployment Tax Rate
• Link Toast as Your Payroll Tax Third-Party Administrator

Tax Management Overview

Many of the items on this page are maintained by your company in the Toast Payroll Tax Center. We highly recommend visiting this page at least once a quarter so you can complete outstanding tasks and help enable a successful quarterly tax filing. Failure to provide this information risks Toast Payroll's ability to remit/file on your behalf, which may result in financial penalties for your company. Visit Toast Payroll: Manage Payroll Taxes to learn all about the Tax Center.

After applying for and receiving your state tax account number(s), payment frequency, unemployment rate, or once you complete your third-party administrator (TPA) linking, log into Toast Payroll and select Taxes from the left-hand navigation. Complete any available tasks here, including Form 8655, missing Social Security numbers, and more.

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Taxes and Forms Toast Payroll Supports/Remits in Maryland

Taxation is generally based on where a company is located and assigned to employees based on where they work. More information on assigning a work tax location within the Toast Payroll system can be found in Toast Payroll: View and Update Work Tax Locations.
 

The state of Maryland has reciprocal agreements with the following states/districts: DC, PA, VA, and WV. This means that employees with a personal residential address indicated on their Toast Payroll profile in any of these states may have taxes withheld by that state instead of Maryland.
 

State Income Tax (SIT)

• MW506 Employer Return of Income Tax Withheld
• MW508 Annual Employer Withholding Reconciliation
• Wage and Tax Statement (State W2)

State Unemployment (SUTA)

• MD DLLR/DUI 15 Maryland Unemployment Insurance Quarterly Employment Report

Local Taxes

• Maryland county/local taxes are collected and paid by Toast Payroll with Maryland state withholdings. No action is needed on the customer's part.
• General information about county/local taxes can be found on the Local Tax Billing & Collection Offices website.

Other

• New Hire Report

Employee name, social security number (SSN), gross wages, and taxable wages, for all employees are listed on the applicable filings done by Toast Payroll.

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Taxes We Don't File

See Taxes We Don't Process for a listing of some taxes our system doesn't currently support.
 

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Where to Find Copies of Tax Filings Processed in Toast Payroll

Quarterly tax packages are found within the Toast Payroll system under Reports > Tax Filing. These reports are typically available the third full week of the month following each quarter-end. Toast Payroll will only generate tax packages for quarters in which a customer was actively processing payroll within the Toast Payroll system.

Note: Toast Payroll may not be able to complete and/or submit tax filings where the Toast Payroll system reflects missing, erroneous, or incomplete information in a customer's account. It is the customer's responsibility to ensure that they have provided Toast Payroll with all requisite tax information in a timely manner. Copies of return submissions do not guarantee that a return was submitted to or accepted by an applicable agency.
 

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Register For Your ID - Withholding and Unemployment Taxes

Registration with the state sets up your tax account, identified by an Employer Identification Number (EIN). This number enables Toast Payroll to file electronically on your behalf. Failure to provide this information risks Toast Payroll's ability to remit/file on your behalf, which may result in financial penalties for your company.
 

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Information You'll Need to Register

  The following are the information needed to register for your ID - withholding and unemployment taxes:

• Federal Employer Identification Number (FEIN)
• Owner name and SSN
• Business mailing address
• Workers' compensation insurance policy or binder number
• Estimated gross wages for first operating quarter
• Department of Assessments and Taxation Entity Identification Number (register here, separately from the tax registration)

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How to Register

  Follow these steps to register:

1. Register for both income withholding tax and unemployment tax accounts on the Maryland Tax Connect website.
   1. Agree to the Terms & Conditions by selecting the checkbox at the bottom. Then select Next in the lower-right corner.
   2. Complete each step of new business registration.
2. Within 7 business days of registration, customers typically receive a Central Registration Number (CRN) for income tax from the Comptroller of Maryland and an Employer Account Number for unemployment from the Maryland Department of Labor, Licensing, and Regulation (DLLR). These are commonly referred to as the company's SIT and SUTA EINs.
   1. A CRN is an 8-digit account number beginning with a 0 or 1: ########.
   2. Employer Account Numbers are 8-10 digit numbers beginning with 00 or 01.
3. Provide the following information to Toast Payroll. It is best to take a screenshot or save as a document and include these in your email.
   1. CRN (SIT EIN)
   2. Payment frequency: Annual, Quarterly, Monthly, or 3 Banking Days
   3. Employer Account Number (SUTA EIN)
   4. Unemployment Rate
      1. If rates are not provided, the Toast Payroll system will apply state-designated new employer rates to a customer's account settings.
4. If a customer has not gone live in the Toast Payroll system, this information should be entered in the onboarding platform or sent to an Onboarding Consultant. Customers who are already live should navigate to Settings > Payroll > Tax Accounts and add the appropriate information.

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Find Your ID and Rate - Already Registered

The Employer Identification Number (EIN) identifies a tax account to the state and enables Toast Payroll to file returns electronically on a company's behalf. Failure to provide this information risks Toast Payroll's ability to remit/file on your behalf, which may result in financial penalties for your company.

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Income Tax Withholding

If you've already registered for a Maryland income tax account, the Central Registration Number (CRN) and frequencies can typically be found by:

• Reviewing notices sent by the Comptroller of Maryland
• Calling the Comptroller of Maryland at (410) 260-7980
• Emailing the Comptroller of Maryland at taxforms@marylandtaxes.gov (include your FEIN in the email)

A CRN is an 8-digit number beginning with a 0 or 1: ########. Add your employer identification number and any payment frequency (annual, quarterly, monthly, or 3 business days) to Toast Payroll by navigating to Settings > Payroll > Tax Accounts.

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Unemployment Tax

If you've already registered for a Maryland unemployment account, the Employer Account Number and tax rates can typically be found by:

• Reviewing notices sent by the Maryland Department of Labor, Licensing, and Registration (Division of Unemployment)
• Calling the Employer Call Center at (410) 949-0033

A Maryland Employer Account Number is an 8-, 9-, or 10-digit number beginning with 00 or 01. Add your account number to Toast Payroll by navigating to Settings > Payroll > Tax Accounts.

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Unemployment Tax Rate

An unemployment withholding tax rate is determined by the state and can change each year based on a number of factors. Visit the Maryland Department of Labor, Licensing, and Registration (DLLR) website for more information on the calculation of a Maryland unemployment withholding tax rate.
 

Maryland generally issues an Experience Rate Notice to each business every year with the current year's tax rate appearing in the Contribution Rate box. Updated Maryland unemployment tax rate information should be entered into Toast Payroll by navigating to Settings > Payroll > Tax Accounts.

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Link Toast as Your Payroll Tax Third-Party Administrator (TPA)

Linking Toast as your third-party administrator (TPA) will ensure we are able to complete the quarterly filings and amendments (if applicable) in a timely fashion.
 

The Maryland Department of Labor, Licensing, and Registration (DLLR) requires a signed Power of Attorney (POA) form to authorize the TPA access online. After your first payroll with Toast Payroll, request a pre-filled POA from us by selecting the blue chat dot in the lower-right corner of any Toast Payroll page. Then upload the completed/signed POA via your online account:

1. Log into your Maryland Beacon Portal.
2. Select Account Maintenance from the menu options.
3. Select the Agent Assignment icon.
4. Next, select the Add Agent tab.
5. In the Search Agent field, enter the Agent ID MD9L9G and select the Search button.
6. The Agent Employer Relation Details field will populate with the Agent's information.
   1. Legal company name: Strategy Execution Partners LLC
7. Select POA to upload the signed Power of Attorney form generated by Toast.
8. Select the following roles:
   1. Wage Submission (original and amended)
   2. Payment Submission
   3. Account Maintenance Updates
9. For the roles with an Access Begin Date, enter the date listed on the POA.
10. Leave the Access End Date blank.
11. Select Save to complete the TPA assignment. The Assigned Agent list should display Strategy Execution Partners LLC as your agent.
12. Now, navigate to the Taxes and Compliance section.
13. Select Tax Setup.
14. Scroll to the Maryland Tax Setup headline.
15. Select Manage Taxes.
16. Select Edit next to Third-Party Authorization.
17. Select Yes, I have authorized Strategy Execution Partners LLC.
18. Select Save.

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This content is for informational purposes and is not intended as legal, tax, HR or any other professional advice. Please contact an attorney or other professional for advice.