![]() The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. Debera Salam ( Kristie Lowery ( Kenneth Hausser ( Payroll News Flash.Workforce Tax Services - Employment Tax Advisory Services Employers with questions should call the Department's Employer Call Center at +1 4 or use the UI Inquiry Form on the Department's website.Īccording to the federal Treasury Direct website, as of February 19, 2021, Maryland requested the option to receive federal UI Title XII advances (UI loans), but currently has a zero loan balance.įor more on Maryland SUI taxes, see the Maryland Department of Labor website.įor additional information concerning this Alert, please contact: )Īs was the case in 2020, employers struggling to pay their 2021 quarterly SUI taxes may apply for a payment plan through the Department's electronic reporting system. The UI provisions of the RELIEF Act allows businesses, governmental agencies and nonprofit organizations with fewer than 50 employees to defer 2021 quarterly SUI tax payments to January 31, 2022. RELIEF Act allows small employers to defer 2021 SUI tax payments to 2022 Tax rate notices will also be available on the Department's electronic reporting website. Department representatives expect that the 2021 rate notices will be issued by the end of February 2021. However, as is the case for several states, the issuance of the 2021 tax rate notices was delayed. SUI tax rate notices are typically mailed to employers in January of the rate year. Note that under the RELIEF Act, an employing unit or third-party agent that has established a pattern of failing to respond timely and/or adequately to requests for information regarding a UI claim for benefits may instead receive a 2021 SUI tax rate based on its UI experience through June 30, 2020.Ģ021 rate notices to be issued by end of February The state's UI trust fund balance as of Jfell to $718,974,536.Īccording to the governor's website, the combination of the executive order and the RELIEF Act provides $326 million in cost relief to businesses. Prior to the pandemic, Maryland's UI trust fund balance had grown over the previous five years to nearly $1.3 billion by June 30, 2019. However, the employer's benefit ratio is applied to Table F for 2021, not Table A. Fiscal year 2020 UI benefit charges and taxable payroll will not be used in the computation. Instead, 2021 SUI tax rates will be based on employer experience for fiscal years 2017–2019 (Jthrough June 30, 2019), to arrive at the same individual employer benefit ratio as was used for the 2020 SUI tax rates. ![]() ![]() Without the governor's executive order and SB 496, employers' SUI tax rates for 2021 would have been based on employer experience for fiscal years 2018–2020 (Jthrough June 30, 2020), reflecting the regular COVID-19 UI benefits that were paid through June 30, 2020. See the Department's website for frequently asked questions about the executive order and the governor's website for more information on the RELIEF Act.Īn employer's UI benefit ratio, the percentage that is applied to the rate schedule for the calendar year, is computed by dividing the UI benefit charged against the employer's account for the previous three fiscal years by the taxable wages for the same time period. The new employer rate for 2021 continues at 2.6%, except for a new foreign contractor account, where the rate is 7.0% for 2021, up from 4.5%. The SUI taxable wage base remains at $8,5. Table A had been effective for five consecutive years prior to 2021.( Maryland Department of Labor website. ![]() ![]() Maryland 2021 SUI tax rates range from 2.2% to 13.5% on Table F (the highest rate schedule), up from 0.3% to 7.5% on Table A (the lowest rate schedule). Although employer individual SUI tax rates will not take into account COVID-19 unemployment insurance (UI) benefits, the overall historic impact on the state's UI trust fund has caused a significant increase in 2021 employer SUI tax rates. Recently enacted SB 496/CH39, the Recovery for the Economy, Livelihoods, Industries, Entrepreneurs, and Families (RELIEF) Act, codifies and extends Maryland Governor Larry Hogan's Executive Order 20-12-10-01 requiring that the 2021 state unemployment insurance (SUI) tax rates not be based on individual employer experience for fiscal year (FY) 2020. Maryland law reaffirms COVID-19 UI benefits are not factored into employer SUI tax rates 2021 SUI tax rates will nonetheless increase substantially ![]()
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