Payroll Services in Maryland

The basics

What does payroll include?

Payroll is the entire process of paying your employees correctly and legally. It's not just the check: from every payment you have to withhold certain deductions from the employee and, in addition, the employer has to pay its own contributions. We calculate it all for you.

Here we explain it clearly, in three parts: what is taken from the employee, what the employer contributes, and how it all balances out each month.

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Employee deductions

From every check we withhold from the employee: federal income tax, Social Security (6.2%), Medicare (1.45%), and Maryland state tax. We calculate it for you so their check comes out correct.

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Employer contributions

On top of the employee's share, the employer matches Social Security (another 6.2%) and Medicare (another 1.45%), and pays federal unemployment (FUTA) and Maryland state unemployment (SUTA). We calculate and pay it for you.

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Clear numbers on every payment

Every pay period we keep everything clear: how much each employee was paid, how much was withheld, and how much the business owes. No surprises and ready for the reports.

Note: payroll rates and rules can vary, and there are limits and special cases. In your free consultation we review your specific situation to explain exactly how it applies to your business.

Compliance

The reports that have to be filed

Having employees requires filing reports with the IRS and the state of Maryland, every quarter and every year. If they are filed late or with errors, penalties follow. We prepare and file them for you, on time.

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Form 941 — Quarterly

Federal report filed every quarter (every 3 months) with the IRS. It reports the wages, the federal tax withheld, and the Social Security and Medicare contributions. We file it for you.

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Form 940 — Annual (FUTA)

Federal report filed once a year for the federal unemployment tax (FUTA). We calculate what is owed and file it on time.

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Maryland state reports

State income tax withholding and state unemployment (SUTA) reports for Maryland. We prepare and file them according to the state's deadlines.

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W-2 and W-3 — Year-end

At year-end we prepare your employees' W-2s and the W-3 summary, so everyone receives their statement and files their taxes.

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1099 for contractors

If you pay contractors (not employees), at year-end we prepare their 1099 forms to report those payments correctly.

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On-time deposits

We deposit the payroll taxes by the dates set by the IRS and Maryland, so your business doesn't rack up penalties or interest.

Our service

What we do for you

We handle all of your business's payroll, every pay period, so all you have to do is work.

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We calculate the payroll

We calculate each employee's pay and all the deductions: federal tax, Social Security, Medicare, and Maryland state tax.

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Printed checks or direct deposit

We get each employee's net pay ready, by printed check or direct deposit, every pay period. And if you need printed checks, we also deliver them to your door.

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We calculate the employer contributions

We calculate what the employer has to contribute: Social Security, Medicare, FUTA, and Maryland SUTA.

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We pay the taxes on time

We deposit the payroll taxes on the correct dates so you don't get penalties from the IRS or the state.

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We file the reports

We prepare and file the quarterly 941, the annual 940, and the Maryland state reports for you.

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We close out the year

At year-end we issue the W-2s, the W-3, and the 1099s for your contractors, all in order.

Why it matters

What you gain with good payroll

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You stay compliant with the IRS and Maryland

Deductions calculated correctly and reports filed on time = a business in good standing.

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You avoid penalties and interest

We deposit the payroll taxes on time so the IRS doesn't charge you penalties.

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Happy employees, paid correctly

Everyone receives their exact check and their W-2 at year-end, error-free.

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You save time and stress

We do the calculations and the reports; you focus on your business.

Is it for you?

Who needs payroll?

If you pay someone to work in your business, you need payroll. Especially:

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Employers with one or more employees

As soon as you have your first W-2 employee, you must withhold and report payroll taxes.

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Small businesses that are growing

Restaurants, stores, construction, cleaning, services: when you hire people, payroll comes into play.

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LLC owners and companies with a payroll

If your LLC or company pays wages, the payroll and the reports have to be handled correctly.

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Businesses that pay contractors (1099)

Even if they aren't employees, those payments also have to be reported with the 1099 form.

We provide payroll service in Frederick, MD and remotely in Germantown, Gaithersburg, Rockville, Silver Spring, Hagerstown, Baltimore and across all of Maryland.

Are you a contractor with government contracts that require Certified Payroll? That's a separate service: visit our Certified Payroll in Maryland page.

Why choose us

Your payroll in good hands

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Fully bilingual

We explain every deduction and every contribution in your language, clearly and without complicated terms.

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We stay compliant with the IRS and Maryland

We calculate, deposit, and file the 941, the 940, and the state reports on time.

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Connected to your taxes and bookkeeping

Since we also do bookkeeping and taxes, your payroll ties into your whole business.

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In Frederick and remote across all of Maryland

In Frederick, MD and remotely for Germantown, Gaithersburg, Rockville, Silver Spring, Hagerstown, Baltimore and all of Maryland.

Frequently asked questions

Questions about payroll

What deductions are taken from the employee on each check?

Four main items are withheld from an employee's check: federal income tax (based on what they declared on their W-4 form), Social Security (6.2% of their wages), Medicare (1.45% of their wages), and Maryland state income tax. We calculate each withholding correctly so your employee's check comes out right and you stay compliant with the law.

What does the employer pay on top of what is withheld from the employee?

The employer pays its own contributions in addition to what is withheld from the employee. The employer matches Social Security (another 6.2%) and Medicare (another 1.45%), and also pays the federal unemployment tax (FUTA) and the Maryland state unemployment tax (SUTA). We calculate these employer contributions and make sure they are paid on time.

What is Form 941 and how often is it filed?

Form 941 is the federal payroll report filed every quarter (every three months) with the IRS. It reports the wages paid, the federal tax withheld, and the Social Security and Medicare contributions. In addition, Form 940 is filed once a year for federal unemployment (FUTA). We prepare and file these reports for you, on time and error-free.

What happens if I don't pay payroll taxes on time?

Payroll taxes must be deposited by the dates set by the IRS and the state of Maryland. If they are paid late or the reports are not filed on time, the IRS applies penalties and interest that can grow quickly. That's why we calculate, deposit, and file everything on time, so your business stays current and penalty-free.

Do you offer service in Spanish?

Yes. We serve the entire Latino community in Maryland, fully in Spanish. We explain every deduction, every contribution, and every report in your language, clearly and without complicated terms. Your first consultation is free.