Form MW-508 is the annual reconciliation for income tax withholding. This is yet another way in which the state of Maryland and the federal government use very similar systems. Due to the number of payroll and income tax withholding calculations, there can be rounding errors that add up to significant sums over time. These discrepancies need to be reconciled at the end of the year.
In terms of filing Form MW-508, you’ll have the same two basic filing options as you do for other Maryland withholding forms. You can e-file, or you can use paper form copies. If you’re already using paper form copies, you’ll likely be interested in our Forms Filer Plus module, which can prepare and print the information on the paper copies of Form MW-508, as well as your Form MW-506 and UI filings.