Employers must familiarize themselves with relevant state withholding form requirements, which may mean seeking MW-507 help. Collect all employee MW-507 forms so you can fully set up your Maryland payroll. Make sure all employees complete the mandatory Form MW-507. You need the form in order to calculate the estimated income tax that you withhold from employee paychecks. You base the total withholding amount on your employee’s personal exemptions.
Software support is not strictly necessary for employers when they collect an informal worksheet like Form MW-507. Yet you can still use the information that you get from the form to customize your Maryland payroll system. All employers eventually need to calculate, withhold, report, and deposit their employees’ income tax withholdings. Invest in AMS Payroll to streamline the entire process. Our payroll system is a reliable tool as you prepare a variety of forms.
Why is Form MW-507 Important?
Getting MW-507 help allows businesses to ensure that they withhold the correct amount from an employee’s wages as it relates to the state tax. Failing to collect the form from all employees will cause you to withhold taxes as though an employee does not file deductions. You will encounter a problem with employees if the government requires them to pay higher taxes than necessary.
Keep in mind that Form MW-507 is similar to the federal exemptions worksheet, Form W-4. Give your employees both forms at the same time for greater efficiency and to improve organization. Bear in mind the few notable differences. It is not uncommon for Maryland employees to live in another state. Make sure that your employees properly claim that type of exemption in Box 4 as you get MW-507 help. The box certifies that your employee lives for a specified amount of time in the District of Columbia, Pennsylvania, Virginia, or West Virginia.
Common Questions About Form MW-507
Questions may arise before, while, and after you collect the MW-507 forms. One big question is often about record-keeping for state and federal forms. Employers must retain records of Form MW-507 and should familiarize themselves with certain other guidelines that we discuss below.
How should exempt W-4 employees fill out Form MW-507? The way that your exempt Form W-4 employee completes an MW-507 can differ. The type of exemption influences the changes. Find the applicable area on Form MW-507 and confirm that they marked it as “EXEMPT.”
What is the maximum number of exemptions on an MW-507? Employers who need MW-507 help should know there is no maximum number of exemptions. Yet the appropriate channels do review employees for any number of exemptions that exceeds 10.
What do you do if an employee does not submit an MW-507 form? Withhold the maximum amount of taxes if an employee fails to submit the form.
Do exemptions change if an employee has multiple jobs? Your employees cannot claim the same exemptions for more than one job. The state fully taxes the second job.
Information Requirements on Form MW-507
Employees include personal information and any applicable exemptions on their MW-507 forms. Review the forms and act accordingly if you notice or suspect that there are any discrepancies. The Compliance Division of the Compliance Programs Section provides MW-507 help once you submit a copy of the certificate with attachments. Use the below address:
Compliance Division, Compliance Programs Section
301 West Preston Street
Baltimore, MD 21201
We outlined the information that you can expect to see on an employee’s completed form.
Personal Information – Employees provide their full name, SSN, mailing address, and country of residence. They disclose if they are single, married, or married but withhold at the single rate.
Line 1 – Employees put their total entitled amount of personal exemptions.
Line 2 – Use the line to withhold additional income if you do not currently withhold enough.
Line 3 – Employees check the line if they do not expect to pay any Maryland taxes.
Lines 4 and 5 – For Maryland employees living in DC, VA, or WV. Line 5 is for PA residents.
Line 6 and 7 – Relevant to individuals living in Pennsylvania, specifically in the York and Adams counties. Line 7 pertains to the districts that do not impose any taxes on Maryland employees.
Line 8 – For service members or military spouses with out-of-state residences. They put the state and claim their exemption.
MW-507 Help with AMS Software
Our AMS Payroll and Forms Filer Plus modules are trustworthy tools for withholding and forms filing. Our key features include creating an SSN Verification file, supportive tax form preparation, automatic saving features, and easy payer and employee setup. Try our free 1099-etc Demo or call (405) 340-0697.