Small Business Information

All newly hired employees must be reported to the Directory. A new employee is an individual who is eligible for federal income tax withholding from wages and provides a service to the employer. This includes employees who work less than a full day, are part-time employees, are seasonal employees, or employees who discontinue their employment prior to being reported to the Directory. Employers having only household and/or domestic employees are also required to report those employees.

Sole Proprietor

A person performing services for wages for a sole proprietorship is engaged in covered employment and therefore must be reported, unless that person is an immediate family member of the sole proprietor as described below.

If you are the sole proprietor of a limited liability company not classified as a corporation for federal tax purposes, the following person employed by the single member limited liability company are not engaged in covered employment and therefore do not need to be reported:
  • The sole proprieter (self);
  • The spouse of the sole proprieter;
  • Children of the sole proprieter under the age of 21; and
  • Parents of the sole proprieter.
Domestic Workers
As they are an employee who is receiving pay they must be reported to New Hire if they make more than $1000 within a quarter of a calendar year.
Independant Contractors (1099's)
The Directory welcomes Independent Contractor reports, however, the law does not require employers to report them. The IRS provides strict guidelines on whether an individual is in fact an Independent Contractor or an employee. If you have questions regarding this guideline, please contact the IRS.

MAXIMUS operates the Maryland State Directory of New Hires under contract with the Maryland Department of Human Services and the Maryland Child Support Administration
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