The State of Maryland has changed the tax withholding rate for some taxpayers. This increase was signed into legislation on May 22, 2012. The new highest tax rate is 5.75% for single filers earning over $250,000 and joint filers earning over $300,000. Previously the highest rate was 5.5%. Personal tax rates are also increased for single filers earning over $100,000 and joint filers earning over $150,000 by adjusting tax brackets. These changes are effective retroactively to January 1, 2012.
Central Payroll?s system has been updated to accommodate this change from this point forward and the implementation schedule is as follows:
RG ? PPE June 12, 2012 with a pay date of June 20, 2012.
CT ? PPE June 15, 2012 with a pay date of June 27, 2012.
Please share this memo with employees making more than $100,000 as they may need to adjust their Maryland withholdings to make up for six months of under withholding. If you have any further questions, you may call any of the Payroll Operations staff at 410-260-7401.
