A recent memo posted by the Comptroller of Maryland highlighted several payroll updates effective January 1st. To read the memo in its entirety, please click this link. Below are just a few of the many changes:
Social Security (FICA) Tax for Employees
The Social Security Administration (SSA) has announced that the Social Security taxable wage base for 2024 will increase from 2023 ($160,200) to 2024 ($168,600). The employer’s FICA tax rate will hold steady at 7.65% for 2024 and the employee social security portion of the FICA tax rate will remain at 6.20% for all wages up to and including $168,600. The employee Medicare portion of the FICA tax rate will be 1.45% for all wages up to and including $200,000. The employee Medicare portion of the FICA tax rate will be 2.35% on all wages earned in excess of $200,000.
Medicare (Hospital Insurance) Tax for Certain Employees
The Medicare (Hospital Insurance) Tax, which is the only Social Security tax applicable to some University of Maryland and certain State Police employees, shall apply to every dollar of FICA taxable earnings in 2023. The Medicare (Hospital Insurance) remains the same as 2021. See explanation on Page l under Medicare tax rates.
Maryland County Income Tax Withholding
For tax year 2024, the local rates for some counties changed. Note: Nonresident local tax rate is 2.25%. Central Payroll Bureau is required to tax at maximum local rate of 3.20% absent of employee submitted address data on Form W-4 and/or MW507. When this occurs, the county code on the employee’s pay stubs will reflect HW for Howard County.
Annual Wage and Tax Statement (Form W-2) for 2023
The Central Payroll Bureau issued laser-printed annual Wage & Tax Statements (Form W-2) on January 27, 2024. Maryland State employees who had signed up to receive the electronic only W-2 version before December 17th, had access to their 2023 W-2s as of January 19, 2024 by logging on to Central Payroll Bureau’s POSC portal. We encourage employees to sign up for electronic only option that gives you early access to your W-2 in secured environment. Three copies of the W-2 statement are provided for use with Federal and State returns plus a copy for the employee to retain. Additional copies are available to the employee or agency payroll personnel via our web site home page, menu option POSC, throughout the year beginning January 31st 2024.
Duplicate W-2’s may be requested via phone starting on February 15, 2024. Current available request lines are: 410-260-7964 (local) and 1-888-674-0019 (toll free in Maryland).