State Form KS KW-3E

Annual Employer Withholding Reconciliation Return

The MD MW508 form, “Annual Employer Withholding Reconciliation Return”, is used by employers in the state of Maryland. Here’s why and when you might need to file an MD MW508:  

Reconciliation of Withholding 

The MD MW508 provides a summary of the total state and local income tax that an employer has withheld from its employees’ wages throughout the calendar year. It ensures that the amounts reported on the individual wage statements (usually the W-2 forms) match the total tax withheld and remitted to the Comptroller of Maryland. 

Reporting Requirements 

Employers who have registered with the Comptroller of Maryland for withholding purposes are required to file this form. If you’ve been withholding Maryland state and local income tax from the paychecks of your employees, you need to submit this form. 

Submission of W-2 Forms 

When employers file the MD MW508, they are also typically required to submit copies of the W-2 forms issued to their employees. This ensures the state has a record of individual wage and tax information. 

Compliance with State Tax Laws 

Filing the MD MW508 is a part of fulfilling your obligations under Maryland’s tax laws. Failing to file the form or filing it late can result in penalties and interest. 

Finalizing Year-End Tax Duties 

The MD MW508 provides a way to close out the year regarding withholding responsibilities. Once it’s filed, and the accompanying W-2 forms are sent out, employers have largely fulfilled their state income tax obligations for the year in Maryland. 

It’s essential to file the MD MW508 to remain in compliance with state’s tax laws and regulations when you’ve made payments that require information returns and have had Maryland income tax withheld. Not filing or late filing can lead to penalties and interest charges.