Is it required to report domestic employee income to state of Maryland?

Forum|Forum|1 year ago
March 29, 2025
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I have reported my household employee Federal tax through the SSA's BSO tool and I received a W2 for the employee. The W2 form doesn't have box 15 and 16 for state tax populated. I know that Maryland doesn't require employers to withhold tax for domestic employees: https://services.marylandcomptroller.gov/taxes/en/employer-withholding?id=kb_article_view&sysparm_article=KB0010017#:~:text=You%20are%20not%20required%20by%20law%20to%20withhold%20Maryland%20income%20taxes%20from%20the%20wages%20paid%20to%20a%20domestic%20employee%20in%20a%20private%20residence I have two questions: 1. do I have to report this income to the state? if yes, how? 2. do I required to fill in box 15 and 16 of form W2 for my employee? if yes, is that ok to just enter MD and the income in those boxes without actually reporting the income to the state?

Best answer by DianeW777

Yes, you will want to include the wages in box 16 but no state withholding. Yes, you must send a copy to Maryland, see the information below.

Paper Filing --Employers with less than 24 W-2 forms to file can choose the paper filing method.

By using the link above you may be able to e-file right on the Maryland (MD) website if you choose. If you do decide to mail it, be sure to include a copy of the W-3 for MD as well.

Mailing Address:

Revenue Administration Division
ATTN: Returns Processing, Room 206
110 Carroll Street,
Annapolis, MD 21411-0001.

Note: Paper filing is an option in Maryland; however, e-filing W-2 forms is highly recommended for faster processing and greater convenience.

Federal unemployment tax: If you pay a household employee total cash wages of $1,000 or more in any calendar quarter, you'll owe federal unemployment tax. This is an employer-only tax. FUTA is six percent of cash wages on the first $7,000 you pay an employee.

MD Unemployment Tax Rules: An employer pays taxes on the first $8,500 of wages paid to an employee in the calendar year. Examples of how to calculate excess wages are listed below:

DianeW777Answer

Yes, you will want to include the wages in box 16 but no state withholding. Yes, you must send a copy to Maryland, see the information below.

Paper Filing --Employers with less than 24 W-2 forms to file can choose the paper filing method.

By using the link above you may be able to e-file right on the Maryland (MD) website if you choose. If you do decide to mail it, be sure to include a copy of the W-3 for MD as well.

Mailing Address:

Revenue Administration Division
ATTN: Returns Processing, Room 206
110 Carroll Street,
Annapolis, MD 21411-0001.

Note: Paper filing is an option in Maryland; however, e-filing W-2 forms is highly recommended for faster processing and greater convenience.

MD Unemployment Tax Rules: An employer pays taxes on the first $8,500 of wages paid to an employee in the calendar year. Examples of how to calculate excess wages are listed below:

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saeed-zgbAuthor

Thanks. this is very helpful.
I do have one more questions, is it require for me to have and add State EIN in the W2 form? would that be always the same as my Federal EIN?

DianeW777

No, not always. However, often it is required when there is not one present on the W-2. For this reason you can enter the federal EIN without dashes or letters (occasionally present).

You can check with your state to see when and if a state identification number is required for your situation.

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