Toast Payroll: Tax Management in Maryland

Many tax jurisdictions no longer accept electronic filings and/or deposits with account information in an Applied For status. If not remedied, customers may be assessed penalties, interest fees, and/or additional repercussions by governing agencies.

In this Article:

Tax Management Overview
Register for Your ID - Withholding Tax, Unemployment Tax, and Family and Medical Leave
Find Your ID and Rate - Already Registered
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. If you do not see Taxes on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

If you have questions regarding payroll taxes, reach out to our Customer Care team via the blue chat button in the lower-right corner of any Toast Payroll page for assistance.

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

State Family and Medical Leave

Quarterly Wage and Hour Report (starting 4/1/27)

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.

Taxes We Don't File

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

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. When you select Reports in Toast Payroll, you should see a URL that begins with payroll.toasttab.com. Visit Navigate Toast Payroll Within Toast Web to learn how the new Toast Payroll navigation works.

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.

Register For Your ID - Withholding Tax, Unemployment Tax, and Family and Medical Leave

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.

Information You'll Need to Register

The following is information you'll need to register for your ID for withholding tax, unemployment tax, and Family and Medical Leave Insurance:

Federal Employer Identification Number (FEIN)
Owner name and SSN
Business mailing address, email address, and phone number
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)
NACIS code

How to Register for SIT and SUTA

Follow these steps to register:

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.
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.
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.
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 log into Toast Payroll and navigate to Settings > Payroll > Tax Accounts and add the appropriate information.
1. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

How to Register for Family and Medical Leave Insurance (FAMLI)

Employer registration is now open for a Maryland Family and Medical Leave Insurance account (MD FAMLI). Registration is required for all Maryland businesses, without exception, by an authorized officer.

An Authorized Officer is a person who is legally permitted to act in an official capacity on behalf of an employer. This can include roles like owner or partner, executive director, CEO, CFO, COO, president, secretary, household employer, or another designated individual with equivalent legal authority as specified by the employer’s bylaws.

Once registered, you will need to sign the POA in order for Toast Payroll to file and pay your taxes. We will not be able to perform the required duties if the POA is not signed by an authorized officer.

Maryland Resident Agent information
A Maryland Resident Agent is a person or business located in Maryland designated to receive official legal documents on behalf of the employer. You can look up your Maryland Resident Agent through the State Department of Assessments and Taxation (SDAT) website. You’ll need their:

Name
Physical address
Email address
Phone number

Log into your FAMLI account or create a new account.
1. When you log into your FAMLI account for the first time, you will see the Prepare to register page. This page provides detailed information for what you need to complete the registration process. Be sure to review this page carefully if you did not do so before you created your FAMLI account.
Confirm your registration type.
1. Select I am registering as an employer if you pay a salary or wage to at least one person working in Maryland.
2. Select Yes, I have one or more employees localized in Maryland to continue registering.
  1. If you select No, employers without employees in Maryland are not required to register with FAMLI, and you will be directed to a Next steps page instead of continuing registration.
3. Select Save and continue.
Enter your EIN.
1. Enter the employer’s 9-digit Employer Identification Number (EIN).
2. Re-enter it to confirm. Do not enter your Social Security number.
3. Confirm the perjury statement.
4. Select Save and continue.
The in-progress registration task list displays where you are in the registration process. From your task list, select Set up your family account.
Set up your FAMLI account.
1. From your task list, select Setting up the FAMLI account and enter:
  1. The employer’s legal name
  2. Whether the employer has a doing business as (d/b/a) name
    1. If you select Yes, enter the DBA name
  3. The employer’s 6-digit NAICS code (not sure? Look it up on the NAICS website)
  4. A secondary email address. This can be the same as the Authorized Officer’s. FAMLI will use it if the primary contact can’t be reached
  5. A secondary phone number. Same rule as above.
  6. The employer’s business structure (e.g., Individual, LLC, Corporation)
    1. Check your articles of incorporation if you’re not sure
2. Select Save and continue. You will return to your task list.
From your task list, select Provide address information.
1. Provide your business address. Enter the physical address of the employer’s U.S. main office or headquarters. This cannot be a P.O. box.
2. Then, enter the mailing address. A P.O. box is allowed here. Check the box if the mailing address is the same as the physical address to skip re-entering it.
3. Select Save and continue.
From your task list, select Submitting Resident Agent information.
1. Submit your Resident Agent details. A Resident Agent is a person, LLC, or corporation designated to receive official and/or legal documents on behalf of the employer. If you don’t know your Resident Agent, you can find it on the Maryland State Department of Assessments and Taxation (SDAT) website.
2. Select whether your Resident Agent is:
  1. A person: enter their first and last name, or
  2. An entity, such as an LLC or corporation: enter the entity name
3. Enter the Resident Agent’s mailing address. This address cannot be a P.O. box.
4. A small number of employers, household employers for example, may not have a Resident Agent. In that case, you may list yourself. An LLC cannot serve as its own Resident Agent.
5. Select Save and continue.
  1. If the address you entered doesn’t exactly match USPS records, you’ll be asked to confirm which version to use.
  2. If you use the address you entered instead of the USPS-recommended address, your Resident Agent may miss crucial FAMLI correspondence. Only use the address you provided if you’re certain the USPS-recommended address is incorrect.
From your task list, select Review and submit registration.
1. Review and submit your registration. Once every section of your task list shows completed, select Review and submit.
2. Carefully review your registration type, FAMLI account information, address information, and Resident Agent details. Make any necessary changes before submitting.
  Select Edit next to any section to go back and correct it.
3. Be sure to register correctly. If you choose the wrong registration type, you cannot change it later. Review this election carefully before selecting Submit registration.
4. After submitting your registration, you’ll see a confirmation page with your employer’s FAMLI account number.
  1. 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 log into Toast Payroll and navigate to Settings > Payroll > Tax Accounts and add the appropriate information.
  2. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

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.

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 logging into Toast Payroll and navigating to Settings > Payroll > Tax Accounts. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

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 logging into Toast Payroll and navigating to Settings > Payroll > Tax Accounts. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

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 logging into Toast Payroll and navigating to Settings > Payroll > Tax Accounts. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

FAMLI ID

The Federal Identification Number is your ID for MD FAMLI. If you have not already done so, add this account number into Toast Payroll by logging into Toast Payroll and navigating to Settings > Payroll > Tax Accounts. If you do not see Settings on the left side of the screen, select Payroll from the Toast Web navigation rail on the left to make the Toast Payroll navigation rail appear.

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, you can find a pre-filled POA in Toast Payroll via Reports > Tax Filling. There, select Download in the green banner. (When you select Reports in Toast Payroll, you should see a URL that begins with payroll.toasttab.com. Visit Navigate Toast Payroll Within Toast Web to learn how the new Toast Payroll navigation works.)

Then upload the completed/signed POA via your online account:

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

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.