An employee worked in Massachusetts, then transferred to Maryland for two months and then moved back to Massachusetts. Do we need to deduct Maryland state withholding tax for those two months?

ANSWER

The BIDaWIZ Team's Answer:

How much was the employee paid while working in Maryland? Also, did the employee live in Maryland as well for those two months? If the gross annual wages were less than $5,000 in the state of Maryland, then withholding tax is not applicable. This is referenced in page 5 of the Maryland State Employer Guide For 2014.