Do I need a permit to hire employees?

Maryland Employee Hiring Permit Requirements

In Maryland, you generally do not need a specific permit solely to hire employees. However, there are important registration and compliance steps to complete before onboarding staff.

Operational Steps Before Hiring Employees in Maryland

• Register Your Business: Ensure your business is properly registered with the Maryland Department of Assessments and Taxation (SDAT).
• Obtain an Employer Identification Number (EIN): Secure a federal EIN from the IRS to report payroll taxes and hire employees legally.
• Register for Maryland State Taxes: Register with the Maryland Comptroller’s Office for withholding tax accounts and unemployment insurance tax through the Maryland Department of Labor.
• Verify Employee Eligibility: Use the E-Verify system or Form I-9 to confirm that employees are authorized to work in the U.S.
• Obtain Workers’ Compensation Insurance: Maryland requires most employers to carry workers’ compensation insurance before hiring employees.

Additional Licensing and Permits

While a specific hiring permit is not required, certain industries in Maryland may require occupational or professional licenses before employing staff. Examples include healthcare, construction, and childcare. Verify industry-specific licensing requirements to maintain compliance.

Payroll and Reporting Compliance

Once employees are hired, maintain accurate payroll records and submit required tax reports timely. This includes:

• Withholding and remitting Maryland state income taxes
• Paying state unemployment insurance taxes
• Reporting new hires to the Maryland New Hire Registry

As of 2026, staying current with Maryland labor and tax regulations ensures smooth hiring operations and avoids penalties.