Maryland Saves Program Effective For Tax Year 2023
November 14, 2022
In 2016, the Maryland legislature passed Senate Bill 1007 establishing the Maryland Small Business Retirement Savings Program (Maryland Saves Program). After many years of delays, the Maryland Saves Program is effective for tax year 2023. Under the terms of the program, substantially all businesses registered in the State of Maryland as of January 1, 2021 or earlier are impacted in one of the following ways:
Scenario 1 – The business has employees who receive an annual W-2 and does not currently offer any type of retirement plan.
Under the law, businesses in this scenario are required to either implement a retirement plan OR enroll in the Maryland Saves Program for tax year 2023. Under current law there is no penalty for noncompliance, however, the State of Maryland will waive the 2023 $300 annual report and personal property return filing fee for all businesses that enroll in the Maryland Saves
program. If your business fits in this scenario, please reach out to your MSWS team member for further information and guidance.
Scenario 2 – The business has employees who receive an annual W-2 and currently offers a retirement plan to its employees.
Businesses in this scenario are required to certify their compliance with the Maryland law by virtue of the already existing retirement plan. The certification may be done via the Maryland Saves Program website using the following link: https://www.marylandsaves.org/claim-exemption/
By certifying your compliance with the Maryland law your business will be eligible to receive a waiver of the 2023 $300 annual report and personal property return filing fee. Therefore, we recommend that all businesses under Scenario 2 complete the certification online as soon as possible.
Scenario 3 – The business does not have employees who receive an annual W-2.
Businesses in this scenario are required to certify their compliance with the Maryland law by virtue of not having employees who receive an annual W-2. The certification may be done via the Maryland Saves website using the following link: https://www.marylandsaves.org/claim-exemption/
By certifying your compliance with the Maryland law your business will be eligible to receive a waiver of the 2023 $300 annual report and personal property return filing fee. Therefore, we recommend that all businesses under Scenario 3 complete the certification online as soon as possible.
Please note, your business may have received (or may receive in the future) an access code from the Maryland Saves Program. The access code is used to enroll in the Maryland Saves Program, or to certify your exemption if applicable. An access code is not required to certify your exemption using the links above. If you would like to enroll your business in the Maryland Saves Program, and have not received an access code, you may request a code using the following link: https://www.marylandsaves.org/register-my-business/
Lastly, attached to this memo please find the Maryland Saves Program Employer and Employee Fact Sheets, which provide more information about the program. Please review these to learn more about the program and as always, please contact us with any questions.
MD Saves Employer Fact Sheet (2 pages).pdf
