Tax Rates and Quarterly Reporting

For unemployment insurance tax purposes, employers are considered contributory or reimbursable.

• Most businesses are considered contributory employers and pay quarterly unemployment taxes based on benefit charges and taxable wages.
• Reimbursable employers are government entities and certain non-profit organizations, which may choose to reimburse the state for benefits charged against their account, instead of paying unemployment insurance taxes.

Learn about which types of employees  that employers need to pay unemployment taxes for.

Tax Rate Calculation

In Maryland, 1 of 6 tax rate tables (Tables A through F)  will be in effect in any particular calendar year, with Table A having the lowest rates and Table F having the highest. The Table in use is dependent on the available funds in the Maryland Unemployment Insurance Trust Fund (UITF).

The tax table in effect for 2025 is Table A, which contains the lowest rates. On the tax table, an employer’s benefit ratio corresponds with a specific unemployment insurance tax rate.

An employer’s benefit ratio is determined by dividing the employer’s benefit charges by their taxable wages (in the 3 fiscal years prior to the computation date).

For unemployment insurance tax rate purposes, the computation date is always the July 1 before the calendar year. For example, the computation date for 2024 was July 1, 2023. Fiscal years 2021, 2022 and 2023 were used to determine an employer’s 2024 experience tax rate.

Additional account details, including an employer’s quarterly benefit charges and taxable wage summaries, are available in the Maryland Unemployment Insurance Portal (BEACON).

In January, each employer is sent an Experience Rate Notice, which informs an employer of their unemployment insurance tax rate for the new calendar year. Notices are available in the Maryland Unemployment Portal (BEACON) and sent through the employer’s preferred communication method. To access your rate notice, log in toMaryland Unemployment Insurance Portal (BEACON) and select “Tax Rate Functions” from the left menu.

An employer’s experience rate is determined by the employer’s benefit ratio and the tax table in effect for the year

An employer may request a review determination of their tax rate within 30 days of the Date of Notice shown on the Experience Rate Notice (instructions are included in the notice).

To access your Experience Rate Notice inthe Maryland Unemployment Insurance Portal (BEACON), log in and select “Tax Rate Functions” from the left menu. Then, select “Rate Notice.” An employer will also receive the notice via their preferred communication method.

For questions about your unemployment tax rate, call the Employer Call Center at 410-949-0033 or toll-free at 1-800-492-5524, Monday through Friday from 8:00 a.m. to 4:30 p.m.

Gross wages include all payment for personal services, including commissions and bonuses, and the cash value of all compensation in any medium other than cash.

Employers must also calculate and report the amount of total taxable wages. For Maryland unemployment insurance purposes, taxable wages are defined as the first $8,500 earned by each employee in a calendar year.

Excess Wages 

An employer pays taxes on the first $8,500 of wages paid to an employee in the calendar year. The difference between total gross wages and taxable wages is called excess wages. Examples of how to calculate excess wages are listed below:

• If an employee earned exactly $8,500 in the first quarter of the calendar year, the employer would have zero excess wages in the first quarter because the entire amount of wages is taxable.

• If the same employee earned $7,000 in the second quarter of the same calendar year, the amount of excess wages in the second quarter would be $7,000 because the employer paid taxes on the first $8,500 in the first quarter. For more, see the Excess Wage Calculator (xlsx).

You must file reports and pay the tax within 1 month of the end of each calendar quarter. You must file on time in order to:

• Receive maximum credit for your state payments against Federal Unemployment Tax Act (FUTA) payments.

• Receive credit for your payroll in your experience rating.

• Avoid interest charges at a rate of 1.5% per month for late payments and a penalty assessment of $35 for each late report.

Maryland employers are required to pay their unemployment insurance taxes by the quarterly due date, 4 times each year. For employers filing in the Maryland Unemployment Insurance Portal (BEACON):

• Pay by E-Check at the time of the filing inMaryland Unemployment Insurance Portal (BEACON).
• Pay by paper check and mail to P.O. Box 17291 Baltimore, MD 21297-0365.
• Pay by ACH Credit after obtaining approval from the Maryland Department of Labor by using the Electronic Funds Transfer Guide (pdf).

You may view the payments you have made in the Maryland Unemployment Insurance Portal (BEACON) system by selecting “Payments” from the left menu, and then selecting “Payment History.”

Learn about employer payment plan options.

Employers and third-party agents can file wage reports inMaryland Unemployment Insurance Portal (BEACON) by entering employee and wage information directly into the system or by using one of the following file formats:

• CSV
• XML
• ICESA
• EFW2

You will need proper credentials to submit wage files by FTP inMaryland Unemployment Insurance Portal (BEACON). To obtain these credentials, please email ui.employeractivation@maryland.gov and use “FTP Wages” as the subject of the email.

• Payment Allocation File Specifications
• MD Payment Allocation Sample File (CSV)
• Power of Attorney Authorization Form
• Employer-Agent ACH Credit File for Payments

Sample data formats and instructions

You are notified of the amount of the charges at the end of each calendar quarter.

An employer is generally charged for unemployment insurance benefits if the employer paid wages to an eligible claimant during the base period. A claimant refers to an individual who submits a claim for unemployment insurance benefits.

The base period (a 12-month period that is usually the first 4 of the last 5 completed calendar quarters before the filing of the claim) is used to determine whether a claimant earned sufficient wages to be eligible for unemployment insurance benefits.

Your benefit charges are based on the proportion of wages you paid to the claimant (in relation to the total wages the claimant was paid by you and any other employees) during the base period.

Examples: 

• If a claimant has only 1 employer in the base period, the employer's account would be charged for 100% of any benefits paid and chargeable. 
• If a claimant had 2 or more employers during the base period, all employer charges are prorated based proportionately on the wages the employer paid to total wages paid. This percentage, multiplied by the total amount of benefits the claimant received, equals your benefit charges. 

The gross wages paid to a claimant by all employers in the base period are used in determining a claimant's weekly benefit amount (WBA). Benefits charged to your account will usually increase your tax rate and result in higher tax payments.

In some circumstances, Maryland employers are not charged for unemployment insurance benefits or receive credits for repayments. When an employer is not charged, it does not mean a claimant is ineligible for unemployment insurance benefits. 

Number 7 is the only non-charging provision applicable to reimbursable employers (certain non-profit organizations and government entities).

The list below includes reasons for non-charging and credit provisions:

1. Voluntarily quit without good cause attributable to the employment.
2. Voluntarily quit for a better job.
3. Voluntarily quit to attend approved training.
4. Discharged for reasons which constitute gross misconduct in connection with the work.
5. Discharged for reasons which constitute aggravated misconduct in connection with the work.
6. Participation in a work release program that is designed to give an incarcerated individual of a correctional institution an opportunity to work while imprisoned and unemployment was the result of the claimant's release from prison.
7. If a claimant receives additional training benefits, the employer is not charged for the additional benefits.
8. Leaving employment for good cause directly attributable to the claimant or the claimant's spouse, minor child, or parent being a victim of domestic violence.
9. If the claimant is originally granted and paid benefits, but as a result of a redetermination or an appeal is later disqualified, a credit will be given for benefits paid prior to the redetermination or the appeal decision. Credits will only be given to reimbursing employers when the claimant repays any benefits improperly paid. Subsequent benefits will only be charged if the claimant resolves the disqualification and the benefits are otherwise payable.
10. Part-time/full-time employment: If a claimant loses a full-time job, but continues to work a part-time job, partial benefits received by the claimant will not be charged to the part-time employer's account as long as the claimant remains actively employed. An employer who receives a Request for Separation Information correspondence for a claimant who is actively working part-time should clearly indicate the claimant's continued part-time status. This applies to reimbursable employers.