(Thissupersedesallpreviouseditions) Effective1/1/12

INSTRUCTIONS & WORKSHEET FORCOMPLETING WITHHOLDING FORMS

FOR MARYLAND STATE EMPLOYEES

ThelawrequiresthatyoucompleteanEmployee’sWithholdingAllowanceCertificatesothatyouremployer,thestateofMaryland,canwithholdfederalandstateincometaxfromyourpay.Yourcurrentcertificateremainsineffectuntilyouchangeit.

Ifyouhavepreviouslyfiledas“EXEMPT”fromfederalorstatewithholding,youmustfileanewcertificateannuallybyFebruary15ofeachyear.

CompletetheEmployee’sWithholdingAllowanceCertificateasfollows:

Section1-EmployeeInformation

-PleasechecktypeofPayroll-Regular(RG),Contract(CT),orUniversityofMaryland(UM)-NameofEmployingAgency-Enternameofagency-AgencyNumber-ProvidedbyAgencyPayrollOffice-EmployeeSocialSecurityNumber-EmployeeName-Completefirstname,middleinitial,lastname-HomeAddress-StreetnameandnumberorR.D.number-AddressContinued-ApartmentnumberorP.O.Boxnumber.Pennsylvaniaresidentsentertownshiporboroughinwhichtheyreside-City,State,Zipcode-Abbreviatestate;entercompletefive-digitzipcode-CountyofResidence-EnterBaltimoreCityorMarylandCountyinwhichyoupresentlyreside

Section 2 - Federal Withholding Form W-4

Tocompletesection2seefederalworksheetonlineat: http://www.irs.gov/pub/irs-pdf/fw4.pdf

Section 3 - State Withholding Form (Choose Appropriate Form)

-Maryland(FormMW507)-Tocompletesection3seeMarylandworksheetpage2onlineat:

http://forms.marylandtaxes.com/current_forms/mw507.pdf

-DistrictofColumbia(FormD-4)-Tocompletesection3seeDistrictofColumbiaworksheetonlineat:

http://otr.cfo.dc.gov/otr/frames.asp?doc=/otr/lib/otr/tax/forms/D-4.pdf

-WestVirginia(WV/IT-104)-Tocompletesection3seeWestVirginiaworksheetonlineat:

http://www.state.wv.us/taxrev/uploads/it100-1-a.pdf

Section 4 - Employee Signature - Your signature is required. WithholdingFormsarenotvalidunlesssigned.

2012 Form W-4 Instructions - Page 1Employee’s Federal Withholding Allowance

Form W-4 (2012)Purpose.CompleteFormW-4sothatyouremployercanwithholdthecorrectfederalincometaxfromyourpay.ConsidercompletinganewFormW-4eachyearandwhenyourpersonalorfinancialsituationchanges.

Exemption from withholding.Ifyouareexempt,completeonlylines1,2,3,4and7andsigntheformtovalidateit.Yourexemptionfor2012expiresFebruary18,2013.See Pub. 505, TaxWithholdingandEstimatedTax.

Note:If another person can claim you as a dependent on his or her tax return, you cannot claim exemption from withholding if your income exceeds $950 and includes more than $300 of unearned income (for example, interest and dividends).

Basic instructions.Ifyouarenotexempt,completethePersonal Allowances Worksheet below.Theworksheetsonpage2furtheradjustyourwithholdingallowancesbasedonitemizeddeductions,certaincredits,adjustmentstoincome,ortwo-earners/multiplejobssituations.Completeallworksheetsthatapply. However,youmayclaimfewer(orzero)allowances. For regularwages,withholdingmustbebasedonallowancesyouclaimedandmaynotbeaflatamountorpercentageofwages.

Head of household.Generally,youmayclaimheadofhouseholdfilingstatusonyourtaxreturnonlyifyouareunmarriedandpaymorethan50percentofthecostsofkeepingupahomeforyourselfandyourdependent(s)orotherqualifyingindividuals.SeePub.501,Exemptions,StandardDeduction,andFilingInformation,forinfomation.

Tax credits.Youcantakeprojectedtaxcreditsintoaccountin

figuringyourallowablenumberofwithholdingallowances.CreditsforchildordependentcareexpensesandthechildtaxcreditmaybeclaimedusingthePersonal Allowances Worksheet below.SeePub. 505forinformationonconvertingyourothercreditsintowithholdingallowances.Nonwage income.Ifyouhavealargeamountofnonwageincome,suchasinterestordividends,considermakingestimatedtaxpaymentsusingForm 1040-ES,EstimatedTaxforIndividuals.Otherwise,youmayoweadditionaltax.Ifyouhavepensionorannuityincome,seePub. 505tofindoutifyoushouldadjustyourwithholdingonformW-4orW-4P.Two earners/Multiple jobs.Ifyouhaveaworkingspouseormorethanonejob,figurethetotalnumberofallowancesyouareentitledtoclaimonalljobsusingworksheetsfromonlyoneFormW-4.YourwithholdingusuallywillbemostaccuratewhenallallowancesareclaimedontheFormW-4forthehighestpayingjobandzeroallowancesareclaimedontheothers.SeePub.505fordetails.Nonresident alien.Ifyouareanonresidentalien,seeNotice 1392, Supplemental Form W-4 Instructions for Nonresident Aliens,beforecompletingthisForm.Check your withholding.AfteryourFormW-4takeseffect,usePub.505toseehowtheamountyouarehavingwithheldcomparestoyourprojectedtotaltaxfor2012.SeePub.505,especiallyifyourearningsexceed$130,000(Single)or$180,000(Married).Future developments. TheIRShascreatedapageonIRS.govforinformationaboutFormW-4,atwww.IRS.gov/w4. InformationaboutanyfuturedevelopmentsaffectingFormW-4(suchaslegislationenactedafterwereleaseit)willbepostedonthatpage.

Line 1Employee Withholding Allowance Certificatea.Numberofpersonalexemptions(totalexemptionsonlinesA,CandDofthefederalW-4orW-4Aworksheet a._____

b.Numberofadditionalexemptionsfordependentsover65yearsofage b._____

c.Numberofadditionalexemptionsforcertainitems,includingestimateditemizeddeductions,alimonypayments,allowablechildcareexpenses,qualifiedretirementcontributions,businesslossesandemployeebusinessexpensesfortheyear. c._____

d.Numberofadditionalexemptionsfortaxpayerand/orspouseatleast65yearsofageand/orblind d._____

e.Total-addlinesathroughdandenterhereanonline1(FormMW507) e._____

Exemptions for dependents-toqualifyasyourdependent,youmustbeentitledtoanexemptionforthedependentonyourfederalincometaxreturnforthecorrespondingtaxyear.

Additional exemptions for dependents over65 years of age-Anadditionalexemptionisallowedfordependentswhoare65yearsofageorolder.

Additional exemptions- Youmayclaimadditionalexemptionsforcertainitems,includingestimateditemizeddeductions,alimonypayments,allowablechildcareexpenses,qualifiedretirementcontributions,businesslossesandemployeebusinessexpensesfortheyear.Oneadditionalwithholdingexemptionispermit-tedforeach$3,200ofestimateditemizeddeductionsoradjustmentstoincomethatexceedthestandarddeductionallowance.

NOTE: Standarddeductionallowanceis15%ofMarylandadjustedgrossincomewithaminimumof$1,500andamaximumof$2,000foreachtaxpayer.

Additional exemptions for taxpayer and/or spouse - Anadditional$1,000maybeclaimedifthetaxpayerand/orspouseisatleast65yearsofageand/orblindonthelastdayofthetaxyear.

Line 2Additional withholding per pay periodunder agreement with employer-ifyouarenothavingenoughtaxwithheld,youmayaskyouremployertowithholdmorebyenteringanadditionalamountonLine2.

Line 3Exemption from withholding. YoumaybeentitledtoclaimanexemptionfromthewithholdingofMarylandincometaxif:a.lastyearyoudidnotoweanyMaryland

incometaxandhadarighttoafullrefundofanytaxwithheld;andb. thisyearyoudonotexpecttooweanyMarylandincometaxandexpecttohavetherighttoafullrefundofallincometaxwithheld.Ifyouareeligibletoclaimthisexemption,youremployerwillnotwithholdMarylandincometaxfromyourwages.

Students and seasonal employees - whoseannualincomewillbebelowtheminimumfilingrequirements(annualincomelessthan$9,500 for 2012)shouldclaimexemp-tionfromwithholding.ThisprovidesmoreincomethroughouttheyearandavoidsthenecessityoffilingaMarylandincometaxreturn.

Line 4Certification of nonresidence in the State of Maryland-ThislineistobecompletedbyresidentsofPennsylvaniaandVirginiawhoareemployedinMarylandanddonotmaintainaplaceofabodeinMarylandfor183daysormore.

Line4isnot tobeusedbyresidentsofotherstateswhoareworkinginMaryland,becausesuchpersonsareliableforMarylandincometaxandwithholdingfromtheirwagesisrequired.

IfyouaredomiciledintheDistrictofColumbia,PennsylvaniaorVirginiaandmaintainaplaceofabodeinMarylandfor183daysormore,youbecomeastatutoryresidentofMarylandandyouarerequiredtofilearesidentreturnwithMarylandreportingyourtotalincome.Youmustapplytoyourdomicilestateforanytaxcredittowhichyoumaybeentitledunderthereciprocalprovisionsofthelaw.

IfyouaredomiciledinWestVirginia,youarenotre-quiredtopayMarylandincometaxonwageorsalaryincome,regardlessofthelengthoftimeyoumayhavespentinMaryland.

Line 5UndertheServicemembersCivilReliefActasamendedbytheMilitary Spouses Residency Relief Act,youmaybeexemptfromMarylandincometaxonyourwagesif(i)yourspouseisamemberofthearmedforcespresentinMarylandincompliancewithmilitaryorders;(ii)youarepresentinMarylandsolelytobewithyourspouse;and(iii)youmaintainyourdomicileinanotherstate.IfyouclaimexemptionundertheSCRAenteryourstateofdomicile(legalresidence)onLine5;enter“EXEMPT”intheboxtotherightonLine5;andattachacopyofyourspousal military identification card toFormMW507.You must also complete and attach Form MW507M.

GENERAL INSTRUCTIONSFederal Privacy Act information -SocialSecuritynumbersmustbeincluded.ThemandatorydisclosureofyoursocialsecuritynumberisauthorizedbytheprovisionssetforthintheTax-GeneralArticleoftheAnnotatedCodeofMaryland.Suchnum-bersareusedprimarilytoadministerandenforcetheindividualincometaxlawsandtoexchangeincometaxinformationwiththeInternalRevenueService,otherstatesandtaxofficialsofthisstate.

Informationfurnishedtootheragenciesorpersonsshall

beusedsolelyforthepurposeofadministeringtaxlawsorthespecificlaws,administeredbythepersonhavingstatutoryrighttoobtainit.

Duties and Responsibilities of Employer - Retainthiscertificatewithyourrecords.Youarerequiredtosubmitacopyofthiscertificateandaccompanyingattachmentstothe

ComplianceDivisionComplianceProgramsSection301WestPrestonStreetBaltimoreMD21201

whenreceivedif:1.youhaveanyreasontobelievethiscertificateisincorrect.2.theemployeeclaimsmorethan10exemptions;3.theemployeeclaimsexemptionsfromwith-holdingbecausehe/shehadnotaxliabilityfortheprecedingtaxyear,expectstoincurnotaxliabilitythisyearandthewagesareexpectedtoexceed$200aweek;or4.theemployeeclaimsexemptionsfromwithholdingonthebasisofnonresidence.5.theemployeeclaimsanexemptionfromwithholdingundertheMilitarySpousesResidencyReliefAct.

Uponreceiptofanyexemptioncertificate(formMW507),theComplianceDivisionwillmakeadeterminationandnotifyyouifachangeisrequired.

OnceacertificateisrevokedbytheComptroller,theemployermustsendanynewcertificatetotheComptrollerforapprovalbeforeimplementingthenewcertificate.

Ifanemployeeclaimsexemptionunder3,4or5above,anewexemptioncertificatemustbefiledbyFebruary15thofthefollowingyear.

Duties and Responsibilities of Employee -If,onanydayduringthecalendaryear,thenumberofwithholdingexemptionsthattheemployeeisentitledtoclaimislessthanthenumberofexemptionsclaimedonthewithholdingcertificateineffect,theemployeeshallfileanewwithholdingexemptioncertificatewiththeemployerwithin10daysafterthechangeoccurs.

Foradditionalinformationpleasecall

410-260-7980ortollfree1-800-638-2937

orvisitourWebsiteatwww.marylandtaxes.com

2012 INSTRUCTIONSEMPLOYEE’S STATE OF MARYLAND WITHOLDING ALLOWANCE

RevenueAdministrationDivision