Information for New Employers - Unemployment Insurance

The information below is meant to provide an overview of important information for employers who are new to the unemployment insurance (UI) process in Maryland. The questions also direct employers to resources with more detailed information about the UI process for employers.

1. For Maryland UI purposes, who is considered an employer?
2. What is the online BEACON UI system and how can I use it? What is the BEACON mobile app?
3. What is a contributory employer? What is a reimbursable employer?
4. How do I register for a Maryland employer UI account?
5. How do I know if I must meet employer UI obligations? What is covered employment?
6. What are my UI obligations as an employer?
7. What am I required to do after my employee separates from employment?
8. How can I contact the Division?
9. How can I learn more about UI in Maryland?

1. For Maryland UI purposes, who is considered an employer?
   
   Under Maryland UI law, an employer is a person or governmental entity who employs at least one individual within the state.
   
   
2. What is the online BEACON UI system and how can I use it? What is the BEACON mobile app?
   
   The Maryland Division of Unemployment Insurance (Division) BEACON UI system integrates all benefits, appeals, and tax functions. Employers and third-party agents can use BEACON to perform several UI tasks, conveniently online, 24/7.
   
   
   • Employer BEACON login webpage
   • Third-party agents BEACON login webpage
   
   Employers can:
   
   
   • Submit required reports and information;
   • Update account information such as address, contact, and ownership;
   • Access their tax rate and other UI-related information;
   • Submit wage reports and pay contributions;
   • Submit adjustments to previously filed wage reports;
   • Respond to Requests for Separation Information;
   • File an appeal;
   • Submit supporting documents for appeals or adjudication;
   • View all correspondence generated by the system; and,
   • Set up an agent to manage their account.
   
   Agents can:
   
   
   • Submit a power of attorney online and access their customer’s account based on their privileges granted by the power of attorney;
   • File wage reports on behalf of their clients;
   • Make contribution payments on behalf of their clients;
   • File appeals on behalf of their clients;
   • Obtain rate information for their clients.
   
   To learn more, see the:
   • BEACON Employer FAQs
   • BEACON Employers and Third Party Agents Tutorial Videos
   • Employer and Third Party Agent Instructions for Submitting Files in BEACON
   
   BEACON Mobile App for Employers
   
   The MD Unemployment for Employers mobile app allows employers to complete some UI tasks in BEACON, conveniently from a mobile device. The app is free to download from the iOS App Store and the Google Play Store.
   
   Registered employers can use the mobile app to make contribution payments, submit wage reports, file appeals, and more. Please note that some UI tasks can not be completed using the mobile app.


3. What is a contributory employer? What is a reimbursable employer?
   
   For Maryland UI purposes, there are two main types of employers; contributory and reimbursable.
   
   A contributory employer pays quarterly UI taxes, which are based on the employer’s benefit charges and the taxable wages the employer reported to the Division.
   
   Certain non-profit organizations (classified under Section 501(c)(3) and exempt from income tax under Section 501(a) of the Internal Revenue Code) and governmental entities and subdivisions can choose to reimburse the state for benefits charged against their accounts, instead of paying quarterly UI taxes.
   
   
   • Eligible employers (non-profits and governmental entities/subdivisions) can request to be a reimbursable employer during the Maryland UI account registration process (completed in BEACON or through the Combined Registration Application (CRA). See Question #4 (How do I register for a Maryland employer UI account?) to learn more.
     
     
   • After creating a Maryland UI account and selecting the reimbursement method, an employer has 30 days to change the method, if the employer feels they choose the wrong method initially.
     
     

   • After 30 days, a reimbursable employer must wait one year to change the reporting type. A contributory employer (who is eligible to be a reimbursable employer) must wait two years to request a change. If approved, the change will take effect on January 1 of the next year.

     For more, see the Reimbursable Employers flyer or contact the Employer Call Center at 410-949-0033 (Monday to Friday, 8:00 a.m.to 4:30 p.m.).

   
   To learn more, see the Employers’ General UI Contributions Information and Definitions webpage.


4. How do I register for a Maryland employer UI account?
   
   In Maryland, employers are required to register for an employer UI account. The Division uses this registration to determine whether an employer is liable to pay UI taxes (or reimburse the Division for benefit charges). If an employer is liable, the Division will assign a Maryland employer UI account number to the employer.
   
   You can register for a Maryland employer UI account either by:
   
   
   • going to the BEACON employer login webpage, selecting “Register for an Account,” and following the prompts;
     
     For more information about registering in BEACON, see:
     
     
     • Registration Instructions
     • Employer Registration Video
   
   
   • filing a Combined Registration Application (CRA). Employers should submit a Combined Registration Application no later than 20 days after the first day of business.
     
     The CRA covers obligations to several state agencies. You should only complete sections that apply to your business. You may file the application online, by fax at 410-260-7908, or by mail to:
     
     Comptroller of Maryland
     Revenue Administration Center
     110 Carroll Street
     Annapolis, MD 21411-0001
     
     You may be required to file using a specific method when applying for certain business tax accounts or licenses. Please review the filing instructions online.
     
     Note: Employers who register in BEACON may need to complete the CRA to register for other state tax accounts/licenses.
     
     For assistance, contact the Employer Call Center at 410-949-0033 (toll free at 1-800-492-5524), Monday to Friday, 8:00 a.m. to 4:30 p.m.
   
   
5. How do I know if I must meet employer UI obligations? What is covered employment?
   
   If your employees perform services in covered employment, you must meet certain UI obligations.
   
   
   • Covered employment is any service performed for remuneration (payment) whether full-time or part-time, that is used as the basis for UI benefits.
   
   When an individual performs a service for an employer in return for wages, the individual is likely covered for UI purposes. Some positions, such as an independent contractor, are exempt from covered employment. For exemptions, see Employers’ General UI Contributions Information and Definitions.
   
   To learn more about how the Division determines an employer’s UI liability, see the Employers’ Quick Reference Guide (Employer’s Liability for Unemployment Insurance Taxes section). If you have a question about your liability as an employer, contact the Employer Call Center at 410-949-0033 (toll free at 1-800-492-5524), Monday to Friday, 8:00 a.m. to 4:30 p.m.
   
   
6. What are my UI obligations as an employer?
   
   To meet UI obligations in Maryland, employers are required to:
   
   

   Report Employee Wages

   • report employee wages to the Division by filing quarterly contribution reports (also called wage reports).
     
     NOTE: As long as your UI account remains open, you are required to file contribution reports each quarter, even if you paid no wages during that quarter. If you paid no wages in the quarter, the reported wage amount is zero. The requirement to file contribution reports ends when the Division issues a letter to the employer verifying that the employer’s UI account is closed. You can close your account by emailing dluiemployerassistance-labor@maryland.gov, calling the Employer Call Center (410-949-0033), or in BEACON. To do so in BEACON:
     
     
     • Select Account Maintenance from the left menu;
       
       
     • Then, select Inactivate Employer Account and follow the prompts.

   Pay Quarterly UI Taxes

   • pay quarterly UI taxes (or, if eligible, reimburse the Division for benefit charges. See the Reimbursable Employers flyer to learn more).
     
     
     • If you do not file contribution reports and pay taxes (or reimburse the Division) timely, you may be assessed penalties, with interest, and increase your federal UI liability. Payment plans are available for qualified employers.
     
     
     • If an employee is not engaged in covered employment, the employee’s wages are not reported to the Division and the employer does not pay UI taxes on those wages.
     
     
     • To learn more about quarterly contribution reports and UI taxes, see the Employers’ Quick Reference Guide.

   
   

   NOTE: A hold may be placed on the renewal of your driver’s license, vehicle registration, or professional license if you owe state taxes that are undisputed, including UI taxes. For details, see the MVA and Professional License Holds webpage.

   Report New Hires and Rehires

   • report new hires and rehires in the Maryland State Directory of New Hires.

   Display Two Posters

   • display two posters (Employees’ Rights Under Maryland's Unemployment Insurance Law and Health Insurance Coverage) in a highly visible area of the workplace. Posters are provided when the employer UI account is established.
     
     ○ To receive additional copies of the posters, call 410-949-0033 or download the posters (from the Employment Related Posters and Notices webpage or the Employers’ Quick Reference Guide).

   Report Job Refusals and Update Return-to-Work Dates

   • report job refusals and update return-to-work dates. Job refusals and return-to-work dates may be reported in BEACON. For instructions, see the BEACON Employer FAQs.
     
     

     Job Refusal

     When an employer offers a job to:
     
     
     • an individual (who has filed for or is receiving UI benefits), or
     • recalls a former employee in layoff status,
     
     and the individual refuses the job (or fails to return), the employer must notify the Division within 15 days of the refusal.
     
     

     Return-to-Work

     In some circumstances, if an employer:
     
     
     • temporarily shuts down operations, and
     • provides laid-off employees with a return-to-work date at the start of the layoff
     
     the affected employees are exempt from the UI requirement to actively seek work (during the period specified). The employer must provide the Division with the return-to-work date. For details, see the Employers’ Quick Reference Guide.
   
   IMPORTANT: You are strongly encouraged to review your Benefit Payments Charge Statement to ensure benefits are charged to your employer UI account correctly. This statement shows the benefits charged to your account and is sent at the end of the calendar quarter in which the benefits were paid.
   
   
   • You will receive this statement via BEACON and your preferred communication method (selected when you registered for a UI account in BEACON). To learn more, see the Employers’ Quick Reference Guide.
     
     
     • You may update your communication preferences in BEACON. To do so, log in and select Account Maintenance from the left menu (labeled Your Options). Select Employer Maintenance. Then, navigate to the Communication Preferences tab, where you can update your preferences.
     
     
   • If you believe a charge is incorrect, you may file a protest within 30 calendar days in BEACON or by mail (to the address included in the statement). For details about protesting charges in BEACON, see the BEACON Employer FAQs.


7. What am I required to do after my employee separates from employment?
   
   When a former employee files a claim for UI benefits, an employer is required to meet additional UI obligations, including:
   
   

   Completing and Returning a Request for Separation Information

   • completing and returning a Request for Separation Information by the due date listed on the request. This form serves two purposes: it informs the employer that a UI claim was filed and it requests that the employer provide the reason the employee separated from employment (as well as any other requested information). The Division will send you a Request for Separation Information via BEACON and your preferred communication method.
     
     
     • You can respond to the Request for Separation Information via: BEACON; the State Information Data Exchange System (SIDES); or by mail (to the address included in the request). For details about responding in BEACON, see the BEACON Employer FAQs.
     
     
     • A $15 fee is assessed if the form is not returned by the requested due date.
     
     
     • If the Division contacts you for more details, please provide the information.

   Notifying the Division in the Event of a Mass Layoff

   • notifying the Division in the event of a mass layoff.
     
     
     • Employers experiencing a mass layoff (even temporary) that affects 25 or more workers must submit a list of affected workers to the Division by completing the Dislocation Event Form. The list must be submitted at least 48 hours in advance. If an employer does not have advance knowledge of the layoff, the employer must submit a list of affected workers (ordered alphabetically or by Social Security numbers) to the Division within 48 hours of the commencement of the mass layoff.
     
     
     • For layoffs of 100 or more workers, the federal WARN (Worker Adjustment and Retraining Notification) Act provisions apply (including fines of $500 per day for non-compliance).

   The Division also strongly encourages you to:

   • be available to provide information about issues related to a former employee who filed a UI claim, when requested by the Division.

   ---

   • participate in appeal hearings that affect a former employee’s eligibility for benefits.
     
     
     • If you (the employer) fail to participate in an appeal hearing that you requested, it will result in a dismissal, meaning that the determination will stand unchanged.
     
     
     • If you do not participate in an appeal hearing that the claimant (individual who applied for UI benefits) requested, a decision will be made solely on the claimant’s testimony. Your participation is critical to properly determine the claimant’s eligibility for benefits.
     
     
     • More information about the appeals process is available on the Division website and in the Employers’ Quick Reference Guide.


8. How can I contact the Division?
   
   Employers and third-party agents can contact the Division through the:
   
   
   • Employer Call Center - You can contact the Employer Call Center with several common inquiries about your UI account, BEACON, UI tasks employer must complete, etc., at 410-949-0033, 8:00 a.m. to 4:30 p.m., Monday to Friday.
     
     
   • Employer Assistance Unit - You can also submit inquiries to the Employer Assistance Unit by email at dluiemployerassistance_labor@maryland.gov.
     
     


9. How can I learn more about UI in Maryland?
   
   The Division has created several resources to help employers and third-party agents learn more about UI.
   
   
   • Employers’ Quick Reference Guide
   • Employer and Third-Party Agent FAQs
   • Flyers, Forms, and Publications for Employers & Third Party Agents
   • Helpful Resources for Employers & Third Party Agents