1. Every employer having an office, factory, workshop, branch, warehouse or other place of business within the municipality imposing a tax on earned income or net profits within the municipality who employs one or more persons, exclusive of domestic servants and Maryland residents, for a salary, wage, commission or other compensation shall deduct at the time of payment thereof the greater of the employee’s resident tax or the employee’s nonresident tax imposed by this Part on the earned income due to his employee or employees and shall, on or before April 30 of the current year, July 31 of the current year, October 31 of the current year and January 31 of the succeeding year, file a quarterly return and pay to the tax officer the amount of taxes deducted during the preceding quarterly periods ending March 31 of the current year, June 30 of the current year, September 30 of the current year and December 31 of the current year, respectively. Such return, unless otherwise agreed upon between the tax officer and employer, shall show the name and Social Security number of each such employee, the compensation of such employee during such preceding 3-month period, the tax deducted therefrom, the political subdivisions imposing the tax upon such employee, the total compensation of all such employees during such preceding quarterly period and the total tax deducted therefrom and paid with the return as well as any other information prescribed by the Department or the tax officer.
2. Any employer who, for two of the preceding four quarterly periods, has failed to deduct the proper tax or any part thereof or who has failed to pay over the proper amount of tax to the tax officer may be required by the tax officer to file his return and pay the tax monthly. In such cases, payments of tax shall be made to the tax officer on or before the last day of the month succeeding the month for which the tax was withheld.
3. Notwithstanding the provisions of subsection .1 above, the provisions of this subsection shall apply if any employer has more than one place of employment in more than one TCD. Within 30 days following the last day of each month, the employer may file the return required by subsection .1 above and pay the total amount of tax due from employees in all work locations during the preceding month to the tax officer for either the TCD in which the employer’s payroll operations are located or as determined by the Department. The return and tax deducted shall be filed and paid electronically. The employer must file a notice of intention to file combined returns and make combined payments with the tax officer for each place of employment at least 1 month prior to filing its first combined return or making its first combined payment. This subsection shall not be construed to change the location of an employee’s place of employment for purposes of nonresident tax liability.
4. On or before February 28 of the succeeding year, every employer shall file with the tax officer or other designated tax officer to whom tax, which has been deducted, has been remitted as required herein:
A. An annual return showing the total amount of compensation paid, the total amount of tax deducted, the total amount of tax paid to the tax officer for the period beginning January 1 of the current year and ending December 31 of the current year, and any other information prescribed by the Department.
B. An individual withholding statement which may be integrated with the Federal Wage and Tax Statement (Form W-2 or successor form), for each employee employed during all or any part of the period beginning January 1 of the current year and ending December 31 of the current year, setting forth the employee’s name, address and Social Security number, the amount of compensation paid to the employee during said period, the amount of tax deducted, the numerical code prescribed by the Department representing the TCD where payments required herein were remitted and any other information required by the Department or the tax officer and the amount of tax paid to the tax officer. Every employer shall furnish two copies of the individual return to the employee for whom it is filed.
5. Every employer who discontinues business prior to December 31 of the current year shall, within 30 days after the discontinuance of business, file the returns and withholding statements hereinabove required and pay the tax due.
6. Except as otherwise provided for in § 511 of the Act, every employer who willfully or negligently fails or omits to make the deductions required by this Section shall be liable for payment of the taxes which the employer is required to withhold to the extent that such taxes have not been recovered from the employee. The failure or omission of any employer to make the deductions required by this Section shall not relieve any employee from the payment of the tax of from complying with the requirements of this Part relating to the filing of declarations and returns.
7. No employer shall be required to deduct or withhold taxes, file returns or pay taxes with regard to residents of Maryland.
(Ord. 2011-10, 11/14/2011, § 7)