There are several options for businesses to file and pay Maryland income tax withholding, motor fuel, and corporate income taxes electronically. Electronic payments are voluntary for these three business tax types unless the payment is for $10,000 or more, in which case payments must be made electronically.
Electronic Funds Transfer (EFT)
Businesses may use electronic funds transfers (EFT) to file and pay Maryland income tax withholding, motor fuel, and corporate income taxes. EFT eliminates the need to write checks and mail paper documents, while avoiding postage costs and the potential for lost mail and penalties for late returns. There are two EFT options available: the ACH Credit Option and the ACH Debit Option.
Important Notice: Beginning August 1, 2013, the EFT ACH payment option will no longer be available for sales and use tax. Please see the Sales and Use Tax Facts and Sales and Use Tax Bulletin for more information.
EFT ACH Credit Option
To use the Automated Clearinghouse (ACH) credit option, you must first contact your bank to determine if your bank offers ACH origination. Your bank must complete Section C of Form EFT, Authorization Agreement for Electronic Funds Transfer to verify that your bank can conform to these standards. You must also complete the contact person information in Section A. The primary contact person should be the person who will be initiating the payments as this is the person that we will correspond with regarding the process.
As the most basic form of ACH payment, the CCD (Concentration or Disbursement) format can be processed by all ACH-member banks. ACH credit transactions require you to enter all payment-related data in the ACH standard CCD+ format and XTP addenda record. You will initiate the credit transaction through your bank to the state's bank account for the amount of your tax payment. The costs of the ACH credit transactions are incurred by you and you are responsible for your proof of payment.
EFT ACH Debit Option
The ACH debit option allows you to make a payment using a toll-free 800 number and a password. The payment amount you specify will be transferred to the state's bank account on a specific date. You can also edit or correct your data before completing the transaction. After completing the call, you will be provided with a five-digit reference number as your proof of transaction. Your bank may charge a nominal fee for processing the debit.
To use the ACH Debit option, complete Sections A and B of Form EFT. After we receive and process your completed Form EFT, you will be mailed instructions for making your EFT payment by phone.
To register for the EFT ACH Credit or Debit Option, complete Form EFT and either fax it to 410-260-6214 or mail it to:
P.O. Box 1509
Annapolis, MD 21404-1509
We will process your application within ten business days and send you specific instructions for your method of EFT. If you do not receive your instructions within two weeks, please contact us at 410-260-7980 or 1-800-638-2937, Monday - Friday, 8:30 a.m. - 4:30 p.m. EST. You may also e-mail us at email@example.com.
If you have a security block on your business bank account, or if your bank is requesting an originator identification number in order to allow Maryland to debit your account at your request, contact us for instructions.