New Employees and Form MW507

When hiring a new employee, you must obtain a certificate of exemption, Form MW507, from the employee. This certificate authorizes you to withhold Maryland income tax from the employee's salary based on the number of exemptions the employee claims. If an employee fails to complete an MW507, you are required to withhold the tax as if the employee had claimed one withholding exemption.

If the employee claims more than 10 exemptions or you do not believe the certificate is accurate, you are required to submit a copy of the exemption certificate to:

Compliance Division

Compliance Programs Section

301 W. Preston Street

Baltimore, Maryland 21201

Military spouses

The wages earned by a spouse of a nonresident U.S. servicemember may be exempt from Maryland income tax under the Military Spouses Residency Relief Act, when the spouse of the servicemember is not a legal resident of Maryland. The income tax withholding exemption may be claimed by filing a revised Form MW507 with their employer. For more information, see Employer Withholding Tax Alert- Important Information for Spouses of U.S. Military Servicemembers.