The *2025 Md. Legislative Session resulted in a number of tax changes including:
You can get a summary of the key changes from the Comptroller’s webinar slide deck , and certainly reach out to our Tax Design Team with any questions as they relate to your returns
The Maryland Comptroller has released the first guidance around the new Sales Tax on Data & IT Services –
Additional info also available from the Comptroller’s page dedicated to Tax Updates from the 2025 Legislative Session
📢 Maryland Employers: MD mailed Unemployment Rate update notices on Mar 17 (we just got ours in the mail this weekend):
Be sure to look for, and update any changes in your payroll platform to avoid under/ over payments + interest/ penalties
You can also log into your employer account on MD’s unemployment platform BEACON to retrieve online as well
Be sure to check out our latest blog post “Tools & Checklists for 2024 Small Business & Individual Tax Returns” –>
You’ll find loads of helpful resources all in one place, including:
A very handy compilation of resources indeed. 👍
The Maryland Comptroller announced that about 6,000 Forms 1099-G were recently mailed to the wrong addresses —
So if you received the postcard form showing the Md. refund you received last year & it’s not yours, the Comptroller advises you to destroy it and await a corrected one
Alternatively, you can download a copy from the Comptroller’s General Accounting Division
Sales tax compliance is something that can creep up on small businesses, and while our team doesn’t specialize in sales tax, we do partner with the folks at Avalara to both: (a) track law changes, and (b) their technology to make things much easier, including embedded solutions in Xero
To get the latest lay of the land in sales tax, download Avalara’s 2025 Tax Changes Report
It’s here! 🥳 – MD Comptroller has just released an online payment tool for Pass-Through Entity Tax (PTET) payments!
So if your S-corp or Partnership is electing to pay tax on your business profit at the Maryland level, you can now remit those payments online 🛜 (& no longer have to write a manual check + mail with a paper voucher)
This should make things much easier for affected business owners (& in time for the 4th quarter PTET estimated payments due Dec 15) – Check out the new Payment Portal
🔔Reminder for Md. businesses🔔 -> Be sure to certify your compliance with MarylandSaves by Dec 1 to have your $300 Md. Annual Report fee waived next year 💲
This is related to the new requirement a couple years ago for businesses with at least 1 employee to have a retirement plan, either their own or the state’s free MarylandSaves option
If your business is using the MarylandSaves program, you’ll automatically get the fee waiver
If your business has its own retirement plan, you should certify compliance before Dec 1 to get the fee waiver
And if you’re exempt (e.g., no employees), be sure to certify exemption too
Energy efficiency incentives are available at both the federal and Maryland level, so check out these links if you’re contemplating, or have already, purchased an EV or use solar in some shape or form
Not only is the IRS' new DirectFile system going to be available in Maryland starting next year …
Maryland will also have its own “FileYourStateTaxesMD” platform that the same taxpayers can use to file their corresponding state return as well
What does that mean? -> Around 700,000 Marylanders will have the ability to file their income taxes for free using software created by the IRS and MD - wow.
You do have to be sure your return is on the simpler side in order to qualify (since the platform can only handle some complexities), but if it does, this promises to be a great stride forward for streamlining tax filings for hundreds of thousands of people!
See the link above for more info!
Did you know? -> Even if you were never in a state all year, you may be required to file a ‘resident income tax return’ there.
It comes down to your “tax domicile” - i.e., ‘your true, fixed, permanent home’ (even if you weren’t there)
For a decent thumbnail, plus info on MD’s recent audits in this area, check out this article from Frost Law
BIG changes to MD labor law to take effect in 2025 ->
New requirement for quarterly wage & hour report to calculate a new benefit: “Family & Medical Leave Insurance”
Depending on biz size, also required to remit 0.45% towards (a la unemployment insurance)
More info: MD DOL Paid Leave website
