EPY: How to Set Up MD Local Taxes for MD Residents (Doc ID 610606.1)

Last updated on JUNE 02, 2016

Applies to:

PeopleSoft Enterprise HCM Payroll for North America - Version 8.8 SP1 and later
Information in this document applies to any platform.
SPECIFIC TO:  Enterprise, North American Payroll

Checked for relevance June 2, 2016


Symptoms


Regarding the withholding of Maryland local tax, BNA says:

In addition to withholding for state purposes, employers must withhold local taxes for all counties and the City of Baltimore.  To compute the appropriate tax rate (state plus local), employers must determine the worker's place of residence.

Ordinarily, determination of the withholding tax on wages and salaries involves nothing more than application of the tables.  Thus, employers should ascertain from all employees their actual place of residence (county or Baltimore City) and withhold the tax using the applicable table to such residence.

CCH says "the employer merely determines the county of the employee's residence and then computes the tax using the table that reflects the tax rate of the county of residence."

Cause

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