If you’re a business registered in Maryland, you’re familiar with the process of filing an annual report through the Maryland State Department of Assessments and Taxation (SDAT). And you’re also familiar with the $300 report filing fee that comes along with it.
What many business owners don’t know is that the state offers a way for business owners to have the fee waived altogether. It all has to do with MarylandSaves.
What is MarylandSaves?
MarylandSaves is state-sponsored workplace retirement savings program designed to provide retirement and savings options for both Maryland business owners and their employees. If you’re an employee, and your employer is enrolled in the program, MarylandSaves automatically deducts a portion of your paycheck into an individual retirement account. If you’re an employer participating in the program, you’ll have a limited role so you can stay focused on running your business. For more information, you can visit the MarylandSaves website or read the brief insight we shared on the new retirement program last year.
Fee Waiver Eligibility
Participating in MarylandSaves is one way for your company to qualify for the SDAT filing fee waiver offered by the state. If you’re an employer currently participating in the program, you will automatically receive the fee waiver. There is no need to complete an application.
While there are plenty of companies not eligible for MarylandSaves, they may still be eligible for the fee waiver. If you are an employer not enrolled in MarylandSaves, but instead offer your employees another qualified plan, you are still eligible for the fee waiver. It’s important to note that the fee waiver only applies to companies that have employees and have an eligible retirement plan. Qualified plans include:
- 401(k) – or other 401(a) plan
- 403(a) – qualified annuity plan
- 403(b) – tax-sheltered annuity plan
- 408(k) – SEP plan
- 408(p) SIMPLE IRA plan – 457(b) governmental deferred compensation plan
If you’re an employer not enrolled in MarylandSaves, but are eligible for the fee waiver, follow these three steps:
- Confirm that your business is registered to conduct business in Maryland and is in good standing.
- Confirm that you have a record of your correct SDAT ID.
- Complete the form here: https://www.marylandsaves.org/claim-exemption/
The application for the 2024 SDAT Annual Report Filing Fee Waiver must now be completed by December 31, 2023. Applications received after that date will be applied for 2025. And remember — this isn’t a one-time deal. Employers must reapply for the fee waiver every year.
As with any retirement saving program, every situation is unique. Before you enroll your business in MarylandSaves, please visit the MarylandSaves website or consult with your tax professional before proceeding.