Maryland Employer Registration

How to register your business for Withholding Account ID and Unemployment Insurance in Maryland

Updated over a week ago

Contents:


Overview:

Before you hire employees and start running payroll, Maryland requires you to register as an employer with the state. This registration will generate account ids that will be used by our Payroll software to pay taxes on behalf of your business. Once you’ve completed the registration process and received your Payroll Tax Account IDs, you’re officially registered as an Employer with the state. This process is known as the Employer Registration process.

Since this process sometimes includes navigating through state websites and filling out complex forms and applications, we’re sharing this step-by-step guide to help you complete this process.


Account IDs required to run payroll

For Maryland, we require the following account ids:

  • Central Registration Number (CRN) - This is also called Withholding Account ID. It typically starts with a 0 or a 1.

  • Employer Account Number (EAN) - Also known as Unemployment Account ID. Your Employer Account Number will likely start with 00 or 01.

  • Unemployment Tax Rate: 2.3% (Standard rate for new employers in 2023)


When do I need to register

In Maryland, Employer Registration is a pre-requisite for running payroll in our payroll software (Gusto). This means that you need to complete your Employer Registration process and share the account ids with us, before scheduling your first training call. Since CRN Registration takes about 7 - 10 Business days to get processed, we suggest that you start the registration process as soon as you receive the email from Collective asking you to complete your Gusto/Xero setup.
Once you have the account ids, feel free to schedule your first training call with your Onboarding Accountant.

Step-by-Step guide to Employer Registration:

To register for Withholding and Unemployment Account IDs, please check out the links below:


Next steps after completing the registration process

Once you've completed the registration process and received the Withholding and Unemployment Account IDs, please reply to the email that you received from Collective, with the account IDs and Experience rate (this is usually 2.6% for new employers but you can check it on your Unemployment registration PDF). Also, make sure to upload the confirmation documents to your Collective Dashboard under the document type "State Employer Registration".


Questions/Suggestions

Drop us an email at [email protected] - Attn: Employer Registration Team, and one of our experts will get back to you with answers.

Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.

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