Filing Maryland Withholding Reports

We accept magnetic media in the Social Security Magnetic Media Reporting and Electronic Filing format (EFW2), formerly MMREF-1, as defined in the U.S. Social Security Administration Publication No. 42-007 MMREF-2 Tax Year 2007 (V.1).

Electronic format required for 100 or more statements

Employers must submit their required annual withholding statements in machine readable or electronic format if the total number of required statements equals or exceeds 100 for tax year 2007. The electronic format is also required if a lower threshold applies for federal income tax purposes.

Employee Withholding Allowance in RS record is a required field

The two-digit field for Employee Withholding Allowance in the "RS" record for W-2 wage data is a required field for tax year 2007. Failure to provide required data in the "RS" record will require to us to reject the magnetic media filing. Any rejected filing is considered to be not filed and may be subject to penalties of up to $50 per W-2.

Outsourced payrolls

If you outsource your payroll, please provide the transmitter/submitter with the Federal Employer Identification Number (FEIN) and the Central Registration (CR) Number. You can find the account numbers in your pre-printed employer withholding tax returns coupon book.

CR number required for paper submissions

Be sure to enter your Central Registration (CR) number on the current Form MW508, if you are submitting fewer than 100 wage statements and filing a paper return. Do not use MW508 forms from prior years. If you need to amend a prior year reconciliation form, use Form MW508A.

MW508 for paper submission only

Do not send in Form MW508 unless the report is for all zeros and /or paper W-2s or 1099s are attached. Amounts reported on Form MW508 are for the paper submission only.

Avoid duplicate filing

Do not report duplicate information. If you file returns magnetically, do not file identical paper documents. This may result in erroneous balance due notices and/or penalty notices.

Cartridges

We no longer accept nine-track (round reel) media, 3480 cartridges or 3490 cartridges.

CDs and diskettes

We accept only 3½-inch CDs and diskettes. Diskettes must be double-sided, double-density or high-density, MS-DOS version or compatible operating system.

1099s and W2-G

Maryland requires a 1099-G, 1099-R, 1099-S and W2-G for every Maryland payee who receives a payment of $10 or more during the tax year being reported.

Combined Federal/State Filing Program

Maryland is a participant in the IRS Combined Federal/State Filing Program. Review the IRS format in Publication 1220 (Rev. Proc. 2007-51), Specifications for Filing Form 1098, 1099, 5498, and W-2G Electronically or Magnetically. See sections concerning filing requirements for 1099 reporting and "B" record modified for Maryland reporting.

If you are participating in the Combined Federal/State Filing Program, do not send us a duplicate 1099 tape. The IRS will provide us with the required information.