Based upon recent information from the State of Maryland, Maryland taxable wages should be reduced by an employee’s Maryland state pension deduction, if applicable. This change will be reflected on the IRS Form W2 for 2022 (issued January 2023) and may impact your 2022 tax returns.
The immediate impact of this change to employees will be a decrease in Maryland state tax withholdings from bi-weekly pay beginning Jan. 7, 2022. While state tax withholdings will be reduced with this adjustment, the calculation of your total Maryland state tax liability will not change.
Employees may review your current State withholding and update your MW507 to elect for additional state tax withholding, as needed. All tax withholding changes must be completed by the employee as a self-service option directly in Workday. Learn more about how to View/Modify State-Local Tax Elections online.
If you have questions or need further assistance updating your tax elections, please contact payroll@hcpss.org. Please contact a tax adviser or professional for tax-related questions specific to your situation.