TABLE OF CONTENTS
THE UNEMPLOYMENT INSURANCE PROGRAM
3
EMPLOYER CALL CENTER AND UI DIRECTORY
3-4
MARYLAND AMERICAN JOB CENTERS
4
MINIMIZE UNEMPLOYMENT INSURANCE COSTS
4
QUICK HIGHLIGHTS FOR EMPLOYERS
4-6
BEACON FOR EMPLOYERS AND THIRD-PARTY AGENTS
6
NEW EMPLOYER REGISTRATION
6-7
EMPLOYER’S LIABILITY FOR UNEMPLOYMENT INSURANCE TAXES
7-8
COVERED EMPLOYMENT AND EXEMPTIONS
9-11
PROFESSIONAL EMPLOYER ORGANIZATION
11
METHODS FOR FILING CONTRIBUTION REPORTS
12
EMPLOYER AUDITS
12
REPORTING TAXABLE WAGES
12-14
TAXABLE WAGE INCLUSIONS AND EXCLUSIONS
14-15
TAX RATES
15-17
PAYMENT OF UNEMPLOYMENT INSURANCE TAXES
17
REIMBURSABLE EMPLOYERS (NOT-FOR-PROFIT AND
GOVERNMENT ENTITIES)
17-18
REORGANIZED EMPLOYERS
18-19
WITHHOLDING/FALSIFYING TRANSFER OF EXPERIENCE RATING
INFORMATION
19-20
SUTA DUMPING
20-21
FEDERAL UNEMPLOYMENT TAX RETURN (FEDERAL FORM 940)
21
REQUEST FOR SEPARATION INFORMATION
21-24
NOTICE OF BENEFIT ELIGIBILITY
24-25
BENEFIT CHARGING
25-26
REVIEWING BENEFIT CHARGES TO YOUR ACCOUNT
26-27
NON-CHARGES AND CREDITS
27
Maryland DUI Communications 1
HEARINGS AND APPEALS
27-28
FACT-FINDING INTERVIEWS
28-30
LAYOFF, MASS LAYOFF, OR LACK OF WORK
30-31
REPORT NEW HIRES, REHIRES
31-32
BANKRUPTCY
32
FRAUD
32
METHODS TO ENSURE PROPER PAYMENTS
33-34
MARYLAND WORKFORCE EXCHANGE
34
UNEMPLOYMENT INSURANCE BENEFITS
34-36
PART-TIME WORKERS
36
PARTIAL BENEFITS
36-37
DISQUALIFICATIONS
37-39
ABLE, AVAILABLE, AND ACTIVE SEARCH FOR WORK
39-40
RECEIPT OF PAYMENTS OTHER THAN WAGES
40
REFUSAL OF SUITABLE WORK
40-41
LABOR DISPUTES
41
WORK SHARING PROGRAM
41
SUPPLEMENTAL UNEMPLOYMENT BENEFITS (SUB)
42
TRADE ADJUSTMENT ASSISTANCE (TAA) PROGRAM
42
EXTENDED BENEFITS (EB) PROGRAM
42
POSTERS REQUIRED BY LAW
43-44
GUIDELINES FOR JOB INTERVIEW AND PRE-EMPLOYMENT INQUIRIES
45-48
Maryland DUI Communications 2
THE UNEMPLOYMENT INSURANCE PROGRAM
The purpose of the unemployment insurance (UI) program is to pay benefits to displaced
employees who are seeking work and are unemployed through no fault of their own. The
UI program is financed by the Federal Unemployment Tax Act (FUTA) and state UI employer
contributions. Administrative funds are distributed to states based on each state’s claims
load. In Maryland, the UI program is administered by the Maryland Division of
Unemployment Insurance (the Division). Employers pay insurance premiums (also called
contributions or UI taxes) that are deposited into the Maryland Unemployment Insurance
Trust Fund, which is used solely to pay benefits to the unemployed. UI helps maintain the
skill levels of the labor force by allowing workers to take reasonable time to find a job in
their customary occupations instead of being forced to accept work at a lower skill level to
meet expenses. Benefits are not high enough, nor do they last long enough, to diminish
the claimant’s incentive to work.
IMPORTANT: It is illegal for an employer to require an employee to release, repay, pay into,
or waive any UI benefit rights. An employer may be prosecuted for doing so.
EMPLOYER CALL CENTER AND UI DIRECTORY
The Employer Call Center (available at 410-949-0033, Monday to Friday, 8:00 a.m. to 4:30
p.m.) is a telephone system that allows employers to speak to agents or receive automated
answers to questions. Employers can contact the Employer Call Center regarding: BEACON;
employer accounts; experience rates; benefit charge correspondence; tax enforcement;
litigation and bankruptcy; accounts receivable, refunds or payment processing;
reimbursable employers; federal treasury offset program; license and tax clearance; and
legal collections. To obtain an account balance, tax rate, etc. employers will need their
10-digit UI employer account number. See below for additional contact methods:
Claimant Resources
(File claims, talk to agent, claim inquiries)
Claims Agent - (667) 207-6520
Lower Appeals Division
Board of Appeals Division
(410) 767-2781
Reemployment and Trade Unit
(Work Sharing)
(410) 767-2534 or (410) 767-2630
Virtual Assistant (VA)
Receive automated answers to inquiries or chat
with an agent. The VA is available 24/7.
To use the VA, select the “Chat with us”
button at the bottom of the Division
homepage. For the chat feature, access
the VA and type "speak with an agent.”
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However, the chat feature is available Monday
to Friday, 8:00 a.m. to 4:00 p.m.
Maryland Relay
Allows individuals who require special
accommodations (due to deafness,
DeafBlindness, hearing loss, difficulty speaking,
etc.) to communicate on a standard telephone.
711
MARYLAND AMERICAN JOB CENTERS
Maryland's American Job Centers (AJCs) are located throughout the state and provide
resources for employers and job-seekers. For employers, AJCs offer experts in state
resources, recruitment, and retention strategies. For detailed information about these
resources, including locations and contact information, see the Maryland AJC webpage.
MINIMIZE UNEMPLOYMENT INSURANCE COSTS
Employers can reduce their UI costs primarily by avoiding layoffs. To avoid layoffs,
employers may consider:
● Reducing an employee’s hours, rather
than a complete layoff;
● Exercising care when hiring employees,
especially for temporary positions;
● Ensuring a new hire is qualified to avoid
a potential layoff situation; or,
● Hiring a student or a person with a
full-time job for a temporary position.
Employers should document unsatisfactory work performance and the reasons for
separation, should the employer need to contest a claim. Under Maryland UI law, an
employer account is not charged with benefits if the employee:
● voluntarily quits employment without good cause attributable to you;
● quits for better employment; or,
● is discharged for gross or aggravated misconduct connected with the work.
QUICK HIGHLIGHTS FOR EMPLOYERS
1. Register for a Maryland UI Account - New employers must register for a Maryland UI
account number either by completing the Combined Registration Application (CRA) or
by registering online in BEACON. Please note that employers who register in BEACON
must also complete the CRA to register for additional state tax accounts or licenses. For
more, see the New Employer Registration section of this guide.
2. Types of Employers - 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
Maryland DUI Communications 4
reported to the Division. A reimbursable employer (government entities and certain
non-profit organizations) may choose to reimburse the state for benefits charged
against their account, instead of paying UI taxes. An employer who is not eligible to be
a reimbursable employer will automatically be a contributory employer. See the
Reimbursable Employers (Not-for-Profit and Government Entities) section of this guide
for details.
3. Quarterly Contribution Reports - Employers must file UI contribution reports each
calendar quarter. Contributory employers must pay the appropriate amount of taxes on
time. See the Reporting Taxable Wages section of this guide for details.
NOTE: Reimbursable employers do not pay quarterly UI taxes, but must reimburse the
state for benefit charges. To learn more, see the Reimbursable Employers (Not-for-Profit
and Government Entities) section of this guide.
4. Mass Layoff & Worker Adjustment and Retraining Notification (WARN) - Employers
experiencing a mass layoff (even temporary) affecting 25 or more workers are required
to submit a list of the laid off workers to the Division at least 48 hours in advance.
Employers covered by the federal Worker Adjustment and Retraining Notification
(WARN) Act must provide notice 60 days in advance of covered plant closings and mass
layoffs. For more, see the Layoff, Mass Layoff, or Lack of Work section of this guide.
5. Request for Separation Information - When a former employee files a claim for benefits,
the Division will send a Request for Separation Information to the employee’s base
period employers as notice that the claim was filed and to request the reason the
employee separated from employment. For more, see the Request for Separation
Information section of this guide.
6. Eligibility Issues - When requested, an employer should provide the Division with
information about eligibility issues resulting from claims filed by former employees.
Eligibility issues may determine whether UI benefits are payable. If benefits are
charged, the Division sends the employer a Benefit Payments Charge Statement (via
BEACON and the employer’s preferred communication method) at the end of the
calendar quarter in which the benefits are paid. For questions, contact the Employer
Call Center (410-949-0033).
7. Required Employer Posters - Employers must display two posters about UI benefits and
health insurance coverage (see the Posters Required by Law section) in a highly visible
area of the workplace. Posters are provided when the UI account is established. To
obtain additional posters, call 410-949-0033 or download them from the Division
website.
8. Frequently Asked Questions - Employers can receive answers to common UI questions
on the Employer Frequently Asked Questions webpage.
Maryland DUI Communications 5
9. Work Sharing Unemployment Insurance Program - The Work Sharing program provides
employers with an alternative to layoffs during a sharp, temporary decline in economic
activity. For more, see the Work Sharing Program section of this guide.
10. New Return-to-Work Date and Job Refusal Application for Employers - Employers with a
valid Maryland UI employer account number and FEIN can report job refusals and
update return-to-work dates in BEACON. To do so, select Benefit Services from the left
menu of your BEACON portal. Then, select either Report Return to Work Date or Report
Job Refusal (depending on the circumstance) and follow the prompts.
BEACON FOR EMPLOYERS AND THIRD-PARTY AGENTS
BEACON is Maryland's online unemployment insurance (UI) system which integrates
benefits, appeals, and contributions functionalities. To access BEACON, see the Employer
BEACON portal; or the Third Party Agent BEACON portal. In BEACON, employers can:
1. Submit wage reports and pay
contributions;
2. Submit required reports;
3. Submit adjustments to previously filed
wage reports;
4. Access tax rates and other UI
information;
5. Update account information (address,
contact information, and ownership);
6. File an appeal;
7. Submit supporting documents;
8. View correspondence; and,
9. Set up a third-party agent to perform
UI tasks on their behalf.
In BEACON, third-party agents can:
1. Access a client’s account based on
power of attorney privileges;
2. Obtain rate information for clients;
3. File wage reports and pay UI taxes on
behalf of clients;
4. File appeals on behalf of clients.
● BEACON tutorial videos are available on the Division website and YouTube.
● For more about BEACON, see the BEACON Employer FAQs webpage.
NEW EMPLOYER REGISTRATION
New employers must submit a Combined Registration Application (CRA) no later than 20
days after the first day of business. The CRA is available on the Comptroller of Maryland
website under the Forms tab. Please read the CRA instructions, as the information
requested and the submission method depends on the type of license/account needed. If
an employer is liable to pay quarterly UI taxes, the Division will establish an UI account for
the employer and assign a 10-digit UI employer account number. Employers should
reference the account number in all inquiries and correspondence to the Division.
Employers can also register for a UI employer account number in BEACON. For instructions,
see the Employer Registration video. However, employers who register in BEACON must
Maryland DUI Communications 6
also complete the CRA to register for additional state tax accounts or licenses. For more
about registering in BEACON, see the BEACON Employer FAQs webpage.
EMPLOYER’S LIABILITY FOR UNEMPLOYMENT INSURANCE TAXES
The Division asks the following questions to determine an employer’s liability for UI taxes:
1. Does the employer meet the Maryland UI law definition of an employer? An employer is
defined as an individual or employing unit which employs one or more individuals for
some portion of a day. The definition includes agricultural employers, domestic
employers, and farm crew leaders.
If the employer meets the definition, the Division considers the circumstances listed in
question 2 below. If the employer does not meet the definition, the employer is not
liable to pay UI taxes.
2. Is the employer liable if the employee performs services in Maryland? The Division will
consider the circumstances listed below to determine liability.
Circumstance
Instructions for Reporting Earnings
No employees perform services in
Maryland.
Employer is not liable for UI coverage in
Maryland and is not required to report
earnings to Maryland.
All/most services are performed in the
state where the base of operations is
located.
Report earnings to the state where
employees’ base of operations is located.
Services are not performed in the state
where employees’ base of operations is
located, but some services are performed
in the state where the direction or control
is received.
Report earnings to the state where the
direction or control is received.
Maryland DUI Communications 7
Services are not performed in the state
where the base of operations is located or
where employees’ direction or control is
received.
Report earnings to the employee's state
of residence only if some services are
performed in the employee’s state of
residence.
Employment in multiple states and some
service is performed in the state where
the base of operations is located.
Earnings are reported to the state where
the individual’s base of operations is
located.
Some services are performed in the state
where direction or control is received and
no services are performed in the state
where the base of operations is located.
Earnings are reported to the state where
the individual’s direction or control is
received.
NOTE: If the nature of the employment is not listed above and the employment is not
covered in another state, the earnings are reported to Maryland (if the service is
directed or controlled from Maryland). The objective is for all services performed by an
individual for a single employer to be covered under one state law. Employers may
cover an employee through a Reciprocal Coverage Agreement between states. For more
information, contact the Employer Call Center at 410-949-0033.
3. Do any employer liability exemptions apply? An employer is not liable for UI taxes if an
exemption applies to all workers. If no exemptions apply, the employer is liable to pay
Maryland UI taxes. Employers should not attempt to determine liability. Instead,
employers should file a CRA or register in BEACON (for details, see the New Employer
Registration section of this guide) and the Division will determine liability.
A corporation that is not dissolved is presumed to have employees and wages and any
payments to officers and owners for services must be reported to the Division. Employers
who no longer pay remuneration to employees, regardless of the reason, are required to
notify the Division (by entering a date on line 9 of the Quarterly Contribution Report, by
Employers can file a quarterly Contribution Report and pay UI taxes in BEACON (see the
BEACON Employer FAQs).
NOTE: Contribution reports must be filed quarterly, even if an employer has no employees
and no wages are paid in a quarter. In this case, an employer should report “zero” as the
wage amount. The requirement to file contribution reports ends when the Division issues a
letter verifying that the employer’s UI account is closed. To close your account, email
selecting the Account Maintenance tab from the left menu. Then, select Inactivate
Employer Account and follow the prompts).
Maryland DUI Communications 8
COVERED EMPLOYMENT AND EXEMPTIONS
Covered employment is defined as any service performed for remuneration (payment)
whether full-time or part-time, that is used as the basis for UI benefits. A claimant must
have sufficient wages in a base period to qualify for benefits. This includes salaries paid to
corporate officers who are employees of the corporation (including close and subchapter S
corporations).
Base Period - The Division uses a standard base period (first four of the last five completed
calendar quarters) or an alternate base period (four most recent calendar quarters) in
determining a claimant’s eligibility for benefits.
When an individual performs service for an employer in return for wages, the individual is likely
covered for UI purposes. Therefore, the employer is required to report the wages to the
Division, pay UI taxes on those wages or, if applicable, reimburse the Division for benefits
charged, and have an UI employer account assigned by the Division. If a person is not
engaged in covered employment, the person’s wages are not reported to the Division and
the employer does not pay UI taxes on those wages. If a former employee (who was
engaged in covered employment, and whom an employer(s) paid wages to during the base
period) files for UI, the employer(s) will be charged for UI benefits paid to the former
employee. For more, see the Benefit Charging section of the guide.
NOTE: One of the most common employment exclusions is an independent contractor. An
independent contractor should have the appropriate licenses, file business tax returns, and
may have a federal identification number and UI employer account number. The Code of
Maryland Regulations (COMAR), the Maryland Court of Appeals decision, DLLR v. Fox, and
information on the Division website provide insight for making a determination. When
independent contractor status is in question, employers must document that the criteria
listed in the Independent Contractor section below are satisfied:
Independent
Contractor
● The individual who performs the work is free from control and
direction over its performance (in fact and under the contract);
● The individual customarily is engaged in an independent
business/occupation of the same nature as that involved in the
work; and,
● The work is: (a) outside of the usual course of business for the
person for whom the work is performed; or (b) performed outside
any place of business of the person for whom the work is
performed.
Maryland DUI Communications 9
Sole Proprietors
The following persons employed by a sole proprietor are not
engaged in covered employment:
● The sole proprietor;
● A spouse of the sole proprietor;
● Children of the sole proprietor under the age of 21; and,
● Parents of the sole proprietor.
Partnerships
A partner in a partnership is not engaged in covered employment. If
a partnership consists exclusively of spouses, then their children
under 21 years old employed by the partnership are not engaged in
covered employment.
Corporations
All persons, including corporate officers and stockholders who
perform service for the corporation, including subchapter S, are
engaged in covered employment.
When a corporate charter is forfeited or revoked and the entity
continues to operate, the entity is treated as a sole proprietor or a
partnership, as determined by the Division. Sole proprietors or
partners are not engaged in covered employment. Any other
employee of the entity is engaged in covered employment.
Limited Liability
Company
Members of a limited liability company are not engaged in covered
employment. However, if a limited liability company elected to be
taxed as a corporation for federal tax purposes and reports wages
paid to members on the annual federal unemployment tax return,
members are engaged in covered employment.
The Code of Maryland, Labor and Employment, Article 8 provides the following exemptions
from covered employment when certain criteria are met:
● Barbers and beauticians;
● Casual workers;
● Employees with certain government
classifications;
● Church employees;
● Clergy;
● Direct sales;
● Election workers;
● Family members;
● Foreign workers;
● Home workers;
● Owner-operated tractor drivers;
● Certain E & F classifications;
● Railroad employment;
● Real estate sales;
● Recreational sports officials;
● Services of aliens (students, scholars,
trainees, teachers, etc.) who enter the
U.S. solely to pursue a full course of
study at certain vocational and other
non-academic institutions;
● Student nurses or interns;
● Taxicab drivers;
Maryland DUI Communications 10
● Insurance sales;
● Maritime employment;
● Messenger services;
● Newspaper delivery;
● Other state UI programs;
● Work-Relief and Work-Training; and,
● Yacht salespersons who work for a
licensed trader on solely a commission
basis.
Casual Labor is defined as work performed that is not in the course of the employer’s trade
or business and which is occasional, incidental, or irregular. Employers should not confuse
casual labor with temporary or part-time employment, which is taxable. However, if during
a calendar quarter the wages for casual labor are $50 or more, and the casual labor is
performed by an individual who is regularly employed by the employer (on some portion of
24 days during the calendar quarter or the preceding calendar quarter), the service is
covered employment and remuneration is taxable under the law.
PROFESSIONAL EMPLOYER ORGANIZATION
Maryland allows a professional employer organization (PEO), formerly known as an
employee leasing company, to be an employing unit for the purposes of UI coverage. To
qualify as an employing unit, a PEO must:
● Place the client company’s workers on its own payroll and assign them to
the client company by written agreement;
● Pay the workers from its own account(s); and,
● Hire and terminate the workers after consultation with the client company.
A PEO can add its clients in BEACON. A PEO must notify the Division within 30 days when
it places or removes all or part of a client company’s workers on its payroll. Employers can
complete a Business Transfer Report to inform the Division of the transfer of the workforce
or payroll from one business entity to another. Upon the acquisition of all or part of a
client company’s workers, a PEO will be initially classified as a successor employer for
purposes of assigning a contribution rate, assessing tax liability, and transferring the
taxable wage base of the workers who were placed on the PEO’s payroll. A PEO must file
an annual report that details the company’s clients with the Division by Dec. 31.
Return the report via: mail (Division of Unemployment Insurance, Contributions Unit –
Account Maintenance, 1100 North Eutaw Street Baltimore, MD 21201); email
(dluicdemployerstatusunit[email protected]v); or fax (410-462-7927).
Maryland DUI Communications 11
METHODS FOR FILING CONTRIBUTION REPORTS
Contribution reports (also called wage reports) may be filed by one of the methods shown:
Filing Method
Filing Method Information
Internet
Employers can file contribution reports in BEACON. For instructions, see
the Employer Submit Wage Repor t tutorial video.
File Transfer
Protocol (FTP)
via BEACON
Employers with large payrolls (more than 5,000 employees) may use this
method to transmit their quarterly wage and contributions files via
secure FTP transmissions. Employers who plan to use FTP in BEACON to
submit wage files must have proper credentials. Please e-mail
line to request credentials.
Important: Contribution reports must be filed quarterly, even if an employer has no
employees and no wages are paid in a quarter. In this case, an employer should report
“zero” as the wage amount. 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.
To close your account, contact the Employer Call Center (410-949-0033), email
from the left menu, select Inactivate Employer Account and follow the prompts).
EMPLOYER AUDITS
Periodically, the Division will contact an employer directly to schedule an audit. The main
purpose of the audit is to verify the accuracy of reports filed. An audit initially covers the
activity in one calendar year. If an employer disagrees with the auditor’s findings, the
employer may appeal the determination.
REPORTING TAXABLE WAGES
Maryland employers must report the gross wages paid each quarter on the quarterly
contribution report. Gross wages include all remuneration for personal services
(commissions, bonuses, the cash value of all compensation in mediums other than cash).
Gross wages must be reported when paid, not when earned. Employers must also calculate
and report the amount of total taxable wages. For Maryland UI tax purposes, taxable
wages are defined as the first $8,500 earned by each employee in a calendar year. The
difference between total gross wages and taxable wages is referred to as excess wages.
Maryland DUI Communications 12
Employers can use the worksheet below to calculate excess wages.
Employers are required to report their payroll and pay UI taxes within one month of the
end of each calendar quarter. If the due date is a Saturday or Sunday, the reports are due
on the next business day.
Calendar Year Quarters End
Due Date to File Taxes
March 31
April 30
June 30
July 31
September 30
October 31
December 31
January 31
Reports must be filed on time to:
● Receive maximum credit for employer’s state payments against Federal Unemployment
Tax (FUTA) payments;
● Receive credit for the payroll in “experience rating”;
● Avoid interest charges at a rate of 1.5% per month for late payments; and,
● Avoid a penalty assessment of $35 for each late report or improper filing.
NOTE: Reimbursable employers do not pay quarterly UI taxes, but must reimburse the state
for benefit charges. See the Reimbursable Employers (Not-for-Profit and Government
Entities) section of this guide for details.
Maryland DUI Communications 13
Failure to file the quarterly contribution report timely or in an approved format can result
in interest charges and penalties. Accuracy when reporting the taxable wages is extremely
important and affects a contributory employer’s UI tax rate. Late payments may affect an
employer’s obligation for FUTA. Employers who file UI tax forms and pay UI taxes on time
are eligible for a FUTA tax offset. Wage information and other confidential UI information
may be requested and utilized for other governmental purposes including, but not limited
to, verification of an individual’s eligibility for other government programs.
TAXABLE WAGE INCLUSIONS AND EXCLUSIONS
Taxable wages include the total compensation paid, up to the taxable wage base limit of
$8,500 (before any deductions are made). The following wages ARE taxable:
1. Meals and lodging provided by an employer to an employee, unless the meals and
lodging are provided on the employer’s premises for the employer’s convenience;
2. Tips which are reported pursuant to Section 6053 of the Internal Revenue Code;
3. Payments to workers for: (a) dismissal; (b) vacations; (c) sick leave (if made within the
first six months after the last calendar month in which the employee worked); and (d)
payments to employees for travel or other expenses for which no accounting or
reporting to the employer is required; (e) sick payments provided from a third-party
insurer financed by employer paid premiums are taxable to the employer, not the
insurance company (if made within the first six months after the last calendar month
in which the employee worked); and,
4. Payments by the employer of the employee’s share of Social Security (except for
payments made by domestic and agricultural employers).
The following wages ARE NOT to be reported:
1. Value of any special discount allowed to a worker on goods or services purchased
from/supplied by the employer, where such purchase is optional for the worker;
2. Payments toward retirement or a death benefit if the employee has no right to: receive
cash instead or to assign their right therein; or to receive a cash payment in lieu of,
on withdrawal from, or on termination of such insurance plan or upon termination of
their employment;
3. Facilities or privileges (such as entertainment, cafeterias, restaurants, medical
services, or so-called “courtesy discounts” on purchases) furnished or offered by an
employer merely as a convenience to the worker or as a means of promoting the
health, goodwill, or efficiency of the employer’s workers;
4. Discounts on property or security purchases;
5. Customary and reasonable directors’ fees;
Maryland DUI Communications 14
6. Supper money given to a worker to compensate the worker for the additional cost of a
meal made necessary by working overtime;
7. Payments by the employer to, or on behalf of, an employee for sickness or accident
disability after the expiration of six calendar months;
8. Wages of a sole proprietor, their parents, their spouse, and children of the sole
proprietor under 21 years of age;
9. Wages of partners. Wages of others who work for the partnership, including relatives
of the partners, are reportable. The only exception to this coverage is children under
the age of 21 who are employed by a partnership composed exclusively of spouses;
10. Wages earned by an individual who is enrolled in a full-time educational program
that combines academic instruction with work experience, which is an integral part of
the educational program;
11. Wages paid to the members of a limited liability company (LLC), unless the LLC
elected to be taxed as a corporation for federal tax purposes and reports wages paid
to members on the annual federal unemployment tax return; and,
12. Any payment to employees of cafeteria plan benefits and/or dependent care
assistance benefits as defined in the Federal Unemployment Tax Act (FUTA), if the
payments would not be treated as wages outside of the cafeteria plan.
Taxable Contributions under IRS Section 125 Cafeteria Plans and 401K plans:
Cash received by the employee, instead of purchasing a benefit under a cafeteria plan, is
taxable;
The value of additional vacation days purchased under a cafeteria plan is taxable when
used;
The value of “cashed out” vacation days purchased under a cafeteria plan is taxable;
Employee pre-tax contributions, salary reductions, or deductions to purchase: accident
and health insurance; life insurance; or dependent care assistance; are not taxable under
under IRS Section 125 plans; and,
Elective employee contributions and deferrals under IRS section 401k plans are taxable.
TAX RATES
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. A reimbursable
employer (government entities and certain non-profit organizations) may choose to
reimburse the state for benefits charged against their account, instead of paying UI taxes.
An employer who is not eligible to be a reimbursable employer will automatically be a
contributory employer. There are three different types of UI tax rates for contributory
employers: experience (earned) rate; new account rate; or the standard rate. The rate type
Maryland DUI Communications 15
assigned depends on whether the employer reported taxable wages in each of the three
fiscal years (fiscal year is July 1 to June 30) prior to the computation date. Tax rates are
assigned to employers on a calendar year basis (Jan . 1 to Dec. 31). An employer’s
Experience Rate Notice is issued in January for the tax year (Jan. 1 to Dec. 31). The
computation date is the July 1st preceding the calendar year in which the rate is assigned.
For example, the computation date for the calendar year 2020 rate was July 1, 2019. Tax
rates are assigned to contributory employers on a calendar year basis (Jan. 1 to Dec. 31).
Experience Rate Notices are issued in January.
1. New Account Rate - New employer refers to an employing unit that does not qualify for
an earned rate because the employer did not pay wages to employees during the two
fiscal years prior to the computation date. The new employer rate may range from 1.0%
to 2.6%. It is based on the higher of: 1.0%; the state’s five-year benefit cost rate; or the
rates assigned to employers with no UI experience. There is one exception; new
employers in the construction industry that are headquartered in another state are
assigned the average rate for the construction industry in Maryland.
2. Experience (Earned) Rate - An employer’s experience rate is assigned on each calendar
year (January to December) but is determined based on a fiscal year (computation date
begins July 1 - June 30). It is determined by finding the ratio between the benefits
charged to the employer’s account and the taxable wages that the employer reported in
the previous three fiscal years. If a business has been operational for only two fiscal
years prior to the computation date, the employer’s experience rate is determined using
the ratio from those two operational years.
The benefit ratio converts to a rate listed in the Table of Rates in the UI law. After an
employer has paid wages to employees in two fiscal years prior to the computation
date, the employer is entitled to be assigned a tax rate reflecting its own experience
with layoffs. If the employer’s former employees receive benefits regularly which result
in benefit charges, the employer will have a higher tax rate. Employers who incur little
or no benefit charges will have lower tax rates. The Table of Rates may change from
year to year, depending on the solvency of the UI trust fund. A mathematical formula,
as provided in the UI law, is calculated annually to determine if the trust fund can
adequately pay benefits to unemployed persons in the future. If the formula determines
that the trust fund does not need additional employer contributions, a Table of Rates
that reflects lower tax rates would be in effect. If the formula determines that the trust
fund needs additional employer contributions, a Table of Rates reflecting higher tax
rates will be in effect.
3. Standard Rate - If an employer is eligible for an earned rate, but has no taxable wages
in a fiscal year because the employer failed to file quarterly tax and wage reports, the
employer is assigned the standard rate. The standard rate is the highest rate from the
Table of Rates that is in effect for the calendar year.
NOTE: UI tax rates were recalculated for 2024, due to a reinterpretation of Labor &
Employment Article § 8-606(d). As in 2022 and 2023, the Division compared two methods
Maryland DUI Communications 16
of computing the tax rate (one based on pre-pandemic experience and one based on
immediate past years’ experience) and assigned the lower of the two rates to each earned
and standard rate employer. For more, see the Recalculation of Calendar Year 2024 Tax
Rates FAQs and PowerPoint presentation.
PAYMENT OF UNEMPLOYMENT INSURANCE TAXES
UI taxes may be paid by one of the following methods:
1. BEACON - Employers can pay online in BEACON by Automatic Clearing House (ACH)
debit or ACH credit. To do so, access your BEACON portal and select the Payments
option from your portal’s left menu. Select Make Payments and follow the prompts.
2. Check - Make checks payable to the Maryland Unemployment Insurance Fund. A check
returned due to insufficient funds is subject to a $25 penalty. Check - Make checks
payable to the Maryland Unemployment Insurance Fund. A check returned due to
insufficient funds is subject to a $25 penalty. As part of submitting a check payment, an
employer may log in to BEACON, select the Payments option from the left menu, and
then select Make Payments. Select the check payment option, and then select the “Print
Voucher” button. Please submit the voucher with the check, and mail both to the
Division (to the address listed below).
Maryland Division of Unemployment Insurance
P.O. Box 17291
Baltimore, MD 21297-0365
3. Electronic Funds Transfer (EFT) - EFT is available to employers using an ACH credit
transaction. Employers must have a signed agreement with the Division to use an ACH
credit transaction. An employer is responsible for any cost charged by the employer’s
financial institution for an ACH credit transaction. For more, see the Electronic Funds
Transfer Information Guide.
Employers can request to pay unemployment insurance contributions through a payment
plan. For details, see the Maryland Unemployment Insurance Payment Plans webpage.
NOTE: The amount of an employer’s payment must equal the amount on line 19 of the
quarterly contribution report. Insufficient payments will result in added taxes and interest.
REIMBURSABLE EMPLOYERS (NOT-FOR-PROFIT AND GOVERNMENT ENTITIES)
Not-for-profit organizations (which are classified under Section 501(c)(3) and exempt from
income tax under Section 501(a) of the Internal Revenue Code) and state and local
government entities and subdivisions, may choose to reimburse the state for benefits
charged against their accounts, in lieu of paying quarterly UI contributions. Not-for-profit
Maryland DUI Communications 17
organizations must post a bond of a specific dollar amount. Newly-formed not-for-profit
organizations may select a reimbursement method (within 30 days of coverage) either:
● on the Combined Registration Application (CRA), available on the Comptroller of
Maryland website; or,
● when registering for a Maryland UI account in BEACON.
After creating a Maryland UI account, an employer has 30 days to change the reporting
type, if the employer feels they choose the wrong type initially. Maryland law permits
employers to change their options after two years. This change must occur at least 30 days
before Jan. 1 to become effective (if approved). Qualifying employers can request a change:
● online in BEACON; or,
● by submitting a written request to the Account Maintenance Unit via email to
415, Baltimore, MD, 21201.
Billing for benefits chargeable to reimbursable employers is made via the Statement of
Reimbursable Benefits Paid. This quarterly statement is sent via an employer’s preferred
communication method and lists all claimants who collected benefits in the previous
quarter. Organizations receiving this form have 30 days from the Date of Invoice to file a
written protest. Interest is charged for late payments. Reimbursable employers can make
payments in BEACON by ACH credit or ACH debit (by logging in to BEACON and selecting
Payments from the portal’s left menu. Then, select Make Payments and follow the prompts)
or by mailing a check to:
Maryland Division of Unemployment Insurance
P.O. Box 84
Baltimore, MD 21203-0084
When making check payments, the employer should include the BEACON voucher with the
check for the payment to be posted in BEACON. To obtain the voucher, an employer may
log in to BEACON, select the Payments option from the left menu, and then select Make
Payments. Select the check payment option, and then select “Print Voucher.”
REORGANIZED EMPLOYERS
According to the Maryland Annotated Code, Labor, and Employment, Section 8-613, a
reorganized employer is an employing unit that alters its legal status, such as changing
from a sole proprietor to a corporation. The reorganized employer will pay the same
contribution rate that the employing unit did prior to the reorganization through the end of
the calendar year, Dec. 31. On Jan. 1 of the new calendar year after the reorganization, the
contribution rate will be based on a combination of the reorganized employer’s experience
with payrolls and benefit charges, and the employing unit’s experience with payrolls and
benefit charges before the reorganization.
Maryland DUI Communications 18
Taxable Wage Calculation - When calculating the taxable wages for a contribution report
in the year of the reorganization, a reorganized employer makes the calculation for each
employee based on wages paid to the employee before and after the reorganization.
Out-of-State Transfers - Employers transferring all or part of their business from another
state to Maryland may be eligible to transfer their experience rate to Maryland. Contact the
Employer Call Center at 410-949-0033 for more information.
NOTE: When calculating the taxable wages for the contribution reports in the year of the
transfer from another state, an employer should make the calculation for each employee
based on wages paid to the employee before and after the transfer.
WITHHOLDING/FALSIFYING TRANSFER OF EXPERIENCE RATING INFORMATION
The law provides for penalties if an employer knowingly withholds or provides false
information regarding the transfer of experience rating. If an employer is penalized under
the Maryland Annotated Code, Labor and Employment, Section 8-614, the employer is
assigned the highest tax rate in the year of the violation and in each of the next three
years. If the employer is already at the highest tax rate for any year, or if the amount of the
increase is less than 2% for that year, a 2% penalty rate is assigned.
An employer who knowingly violates the law regarding successorship is guilty of a
misdemeanor and, on conviction, is subject to imprisonment of up to one year, a fine up to
$10,000, or both. The law also provides for civil and criminal penalties against a person
who is not the employer if the person violates, attempts to violate, or knowingly advises an
employer in a manner that causes the employer to withhold or provide false information
regarding the transfer of experience rating. This individual is subject to a civil penalty of
up to $5,000, may be found guilty of a misdemeanor and, on conviction, would be subject
to up to one year of imprisonment, a fine of up to $10,000, or both.
Transfer of Experience Rates - An employer will often acquire its business from a previous
owner or reorganize a business. The effect of these transactions on the employer’s
contribution rate is summarized below.
1. New Employing Unit Acquired Business - When a new business entity is formed and it
acquires assets, employees, a business, an organization, or trade from another
employer, the new business entity is classified as a successor employer. If there is any
common ownership, management, or control between the successor employer and the
former employer (predecessor), the predecessor’s tax rate and experience rating is
transferred to the successor. If there is no common ownership, management, or control
with the predecessor employer, the experience rating is not transferred and the new
business entity is assigned a new account rate.
Maryland DUI Communications 19
2. Common Ownership - Common ownership, management, or control exists when a
predecessor employer/successor employer serves in the following positions:
● Sole proprietor
(includes spouse,
children, and parents of
sole proprietor);
● Partner of a
partnership;
● Chief Executive Officer;
● Member of a limited
liability company;
● Chief Financial Officer;
● Any corporate officer;
● Any shareholder
owning, directly or
indirectly, of more than
50% of a corporation's
stock.
3. Taxable Wage Calculation - When calculating the amount of taxable wages for the
quarterly contribution report in the year of the acquisition, a successor employer (that
assumed the experience rating of a predecessor) should make the calculation for each
employee based on wages paid to the employee by the predecessor and successor. If a
successor employer does not assume the experience rating of the predecessor because
there is no common ownership, management, or control with the predecessor, the
successor may not compute taxable wages based on wages paid by the predecessor.
4. Existing Employing Unit Acquired Business - When an existing business entity acquires
assets, employees, a business, an organization, or trade from another employer, the
existing business entity is classified as a successor employer. The successor continues
to pay contributions at the previously-assigned rate from the date of transfer through
the next Dec. 31. For the year following the acquisition, the successor’s tax rate is a
blended rate that includes the predecessor’s experience.
5. A New Employer or Existing Employer is not a Successor if:
● the employer acquires less than 50% of the predecessor’s employees;
● the predecessor continues to pay wages to the remaining employees in the quarter
following the acquisition of employees by the employer; and,
● other than the transfer of workforce, the employer does not acquire any tangible or
intangible assets from the predecessor employer.
NOTE: When calculating the taxable wages for the contribution report, employers, with the
exception of successor employers, must compute taxable wages for each employee based
on wages that the employer paid (not on wages paid by any previous employer).
SUTA DUMPING
❏ State Unemployment Tax Act (SUTA)
SUTA dumping refers to unlawful
actions taken by an employer to obtain
a lower UI tax rate.
❏ Instead of paying UI taxes at a rate
based on its experience with layoffs and
payrolls, an employer attempts to avoid
a higher rate by dumping its exper ience.
❏ Often involves merger, acquisition, or
restructuring schemes, such as shifting
Maryland DUI Communications 20
workforce/payroll from one business
entity to another.
Penalties range from a higher UI tax rate, monetary fines, and imprisonment. When
workforce/payroll is shifted from one business entity to another, please complete the
Business Transfer Report and provide any additional requested information to the Division.
FEDERAL UNEMPLOYMENT TAX RETURN (FEDERAL FORM 940)
Most employers are subject to both federal (authorized by the Federal Unemployment Tax
Act) and state unemployment taxes. Employers subject to federal unemployment tax must
file Form 940 and pay FUTA taxes annually, on or before January 31. Employers may pay
federal taxes online. The tax is based on the taxable payroll of the calendar year
immediately preceding the filing date. For example, employers paid 2018 federal UI taxes
in Jan. 2019. For more, see the Federal Unemployment (FUTA) Tax Return webpage. If
discrepancies arise, a discrepancy letter is sent to the employer from either a federal or
state agency. The letter shows the reported amount, how that amount differs from the
records, and actions an employer can take (if the employer disagrees with the findings). To
reduce discrepancies, employers can ensure that employment and tax returns are
completed properly, accurately, and on time. For questions about discrepancies, call
410-949-0033.
NOTE: The standard FUTA tax rate is 6% of the first $7,000 of wages (paid to each
employee) subject to FUTA. Computation of the federal UI tax due requires information
about wages reported to the state and taxes paid. To ensure accuracy of data submitted,
the federal government compares taxable payroll information submitted on the Form 940
with state records (referred to as the certification process). For more about Form 940, see
the Internal Revenue Service website.
REQUEST FOR SEPARATION INFORMATION
A Request for Separation Information is sent to an employer when a former employee files
a claim for benefits. The Request for Separation Information notifies the employer that a
claim was filed and requests that the employer provide the reason for separation from
employment. The Division will use the information provided on the form to, in part,
determine whether the individual is eligible for unemployment insurance benefits.
Employers must complete and return the Request for Separation Information by the due
date (eight calendar days after the form is generated) on the form to avoid a $15 penalty.
Employers can respond to the Request for Separation Information either:
● Online in BEACON. A confirmation number will be provided once the transaction is
completed;
● Through the State Information Data Exchange System (SIDES);
● By mail (to the address appearing on the Request for Separation Information).
Maryland DUI Communications 21
If an employer fails to return the form by the due date, benefits will be paid if the claimant
had indicated that the claimant was separated due to lack of work or temporary layoff. To
prevent overpayments and improper employer charges, it is extremely important that the
employer responds to the Request for Separation Information in a timely manner and
responds to phone calls requesting more information. If the separation reason is not lack
of work, a fact-finding interview will be scheduled before benefits are paid. Employers
must return the Request for Separation Information form (online or by mail), even if the
separation information was obtained by telephone.
NOTE: An employer who is using an UI cost control agency is responsible for providing that
agency with complete and timely information regarding separation from employment. The
Division will send separation notices directly to the representing agent and will NOT
contact the employer for additional information.
Employers providing false information for the purpose of disqualifying a claimant may be
subject to criminal and civil penalties. The following issues should be addressed when
reporting separation information:
1. No Record of Employment - An employer should not disregard a claim because the
employer can not identify the claimant as a former employee. The employer should
check the claimant by Social Security number, since names often change due to
marriage, divorce, or other legal reasons. If the employer can not identify the claimant,
the employer should return the Request for Separation Information and indicate that
the employer has no record of employment for this claimant.
2. Claimant Still Employed - Even if a claimant is working for an employer, the employer
should check whether the claimant’s hours of work were reduced. An employee may be
entitled to partial benefits if their hours were cut through no fault of their own. Did the
employee file a claim during a temporary layoff or shutdown? Did the claimant return
to work? If so, the employer should include the date of layoff and the date the claimant
returned to work or was recalled.
3. Leave of Absence - If the claimant is on an approved leave of absence, the employer
must provide to the Division:
● the effective date of the employee’s
leave;
● the reason(s) for the leave;
● the expected date of return; and,
● whether the claimant notified their
supervisor that the claimant is now
able and willing to return to work. If
yes, is work still available?
In most cases, a claimant is ineligible for benefits if the claimant is on a leave of
absence. The claimant is denied UI benefits because the claimant is not able or
available to work, and is not actively seeking work. It is important for an employer to
report whether the claimant is on a paid leave or unpaid leave. If paid, provide the
weekly payment. If the claimant is on a paid leave, the payments are considered wages.
Maryland DUI Communications 22
If the claimant is receiving UI benefits, the payments will be deducted from the
claimant’s weekly benefit amount. It is also important to report whether the leave is
indefinite or definite and whether a return-to-work date has been established. If
definite, provide the return-to-work date. If the claimant is on a definite leave and files
for UI benefits during the week that includes the return-to-work date, a refusal of work
issue will be created to determine why the claimant is not working.
4. Retirement - Some claimants may receive retirement payments while collecting UI
benefits. If a claimant is receiving a periodic payment or lump sum payment allocated
to weeks the claimant is filing for UI benefits, then the amount of the payment is
deductible if it was contributed to, or paid for, by a base period employer. If only part of
the retirement plan was paid for by the base period employer, 50% of the payment will
be considered. If the payment is less than the claimant’s weekly benefit amount, the
claimant may receive partial benefits. If the payment is from a non-base period
employer, it is not deductible. Maryland UI Law requires that employers provide written
notice to employees displaced from work about the effect a lump sum payment has on
the receipt of UI benefits. A lump sum paid as a result of a layoff or shutdown is not
deductible. If the former employee places the entire lump retirement payment into a
qualified retirement account within 30 days of receipt, it is not deductible. A lump sum
paid at the time a claimant is fired, quits, or retires is deductible and is allocated to the
weeks following separation at the claimant’s last wage rate.
5. Voluntary Resignations - A claimant may be disqualified from receiving UI benefits if
the claimant is unemployed because the claimant voluntarily quit employment without
good cause.
● If the reason for quitting is personal and not job-connected, the claimant will be
disqualified from receiving UI benefits. In these cases, the employer’s account
should not be charged.
● If a claimant voluntarily quits employment for reasons determined to be good cause
directly attributable to the employment, no penalty is warranted and benefits are
chargeable to the employer’s account. For example, if an employee quits because
the job conditions caused the employee to become ill and this is verified by a
physician, no penalty applies. Of course, the claimant must be able to work,
available for work, and actively seeking full-time work in order to receive benefits.
It is in the employer’s interest to ensure that the Division is made aware of the actual
reasons for the claimant’s separation. In evaluating a voluntary quit, the Division will
generally apply the “reasonable and prudent” test; that is, would a reasonable and
prudent person have quit under the same circumstances?
6. Voluntary Quit Because of Medical Reasons - If a claimant is unable to work in their
normal occupation, has become unemployed for medical reasons not attributable to the
job and presents medical documentation (ill, injured, or pregnant), the claimant will
Maryland DUI Communications 23
receive a weekly denial and the employer will not be charged for any subsequent
payments.
7. Voluntary Quit in Lieu of Discharge - If an employer informs the claimant that they will
be discharged and gives them the option to resign, or the claimant chooses to resign in
the face of the imminent discharge, it is not considered a voluntary quit within the
meaning of the law. It is not considered a voluntary quit because the employer is the
moving party. A resignation in lieu of discharge is treated as a discharge and should be
checked as such on the separation notice.
8. Discharges - An employer should select “discharge” on the Request for Separation
Information form if the employee was separated for one of the following reasons:
● Absenteeism/tardiness;
● Rule violation;
● Insubordination;
● Conviction for criminal offense;
● Suspension; and,
● Not qualified for the job, but worked
to the best of ability.
NOTE: If the reason for separation is “not qualified for the job, but worked to the best of
ability,” and no other issues are blocking payment, UI benefits are payable.
9. Temporary Help Firms (Located in Maryland Only) - A temporary help firm is defined as
an entity that assigns its own employees to perform services for clients on a
non-permanent basis. A claimant who works for a temporary help firm and is removed
from an assignment will not be considered discharged unless the claimant is also
removed from the temporary help firm’s rolls. A claimant, whose last employer was a
temporary help firm, is not actively seeking work in the first week claimed if the
claimant, at the end of the current assignment, does not request another assignment.
Temporary help firms are responsible for notifying their employees of this requirement
and to keep documentation. A temporary help firm should state on the Request for
Separation Information when the claimant has completed an assignment. After this
statement, the employer will be asked whether the claimant requested another
assignment. The claimant will be allowed benefits if: the claimant shows that another
assignment was requested; the claimant had good cause for failing to request another
assignment (e.g., a natural occurrence such as flooding, hurricane, etc.); the temporary
help firm consistently offered the claimant assignments that were not within their job
classification; or the assignment did not meet the conditions under which the claimant
was hired.
NOTICE OF BENEFIT ELIGIBILITY
The Notification of Benefit Eligibility of a Former Employee is sent to a base period
employer (through the employer’s preferred communication method and available in
BEACON) when a claimant receives their first benefit payment. For more information about
a claimant’s base period, see the Benefit Charging section of this guide. This notice is
Maryland DUI Communications 24
for informational purposes only. This is not an appealable document. Employers should
review this notice to ensure they understand whether they are being charged for a former
employee’s UI benefits.
BENEFIT CHARGING
An employer’s account is charged for UI benefits because the employer paid wages to an
eligible claimant during the standard or alternate base period.
● The standard base period is the first four of the last five completed calendar quarters
before an individual’s claim effective date. An individual’s claim effective date is the
Sunday of the week in which the initial claim is filed. If the claimant does not qualify
for benefits using the standard base period, an alternate base period may be used. The
alternate base period is the most recently completed four calendar quarters of wages
before the claim effective date.
The amount charged depends on the proportion of wages you paid to the claimant, in
relation to the total wages paid by you and any other employers during the base period.
This percentage, multiplied by the total amount of benefits ultimately received by the
claimant, equals your benefit charges. You are notified of the exact amount of charges at
the end of each calendar quarter (see the Reviewing Benefit Charges to Your Account
section for more).
● If a claimant has only one employer in the base period, that employer’s account is
charged for 100% of any benefits paid and chargeable. If the claimant had two or more
employers during the base period, all employer charges are prorated based
proportionately on the wages the employer paid, to total wages paid.
Benefits charged to an employer account often increase the employer’s tax rate and result
in higher tax payments. The higher tax payments enable the UI Trust Fund to recover the
benefits paid over a three-year period. Employers can prevent improper benefit charges to
their accounts by providing accurate information to ensure a proper determination.
Claimant UI Benefit Time Period
Eligible claimants may collect up to 26 weeks of UI benefits during their benefit year. The
benefit year is the 52-week period beginning with the claim’s effective date (the Sunday
before the individual applied for UI benefits). If any extension programs are in place
(including, but not limited to, the federal Extended Benefits program), claimants may be
paid additional weeks. If no extension programs are in place, claimants may receive more
than 26 weeks of benefits only if they receive partial UI benefit payments for one or more
weeks. This may occur if a claimant works part-time/a reduced work schedule.
NOTE: An alternate base period will generate the Employer Alternate Base Period Wage
Affidavit. This form requests gross wage information from the most recently-completed
calendar quarter. Please submit this form by the due date shown on the form. Failure to
Maryland DUI Communications 25
provide this information in a timely manner may result in a $15 fine. The Alternate Base
Period Wage Affidavit may be submitted in BEACON, by fax to 410-333-5142, or by mail to:
Maryland Division of Unemployment Insurance
Wage Assistance Unit
P.O. Box 17559
Baltimore, MD 21297
Weekly Benefit Amount
In Maryland, the weekly benefit amount (WBA) is a fixed payment ranging from a minimum
of $50 to a maximum of $430. The gross wages paid to a claimant by all employers in the
base period are used to determine a claimant’s WBA.
● A claimant’s maximum amount of benefits is the claimant’s WBA multiplied by the
number of weeks a claimant may receive benefits in a one-year period (benefit year). A
claimant may receive up to 26 weeks of regular UI benefits during a benefit year.
● If the claimant receives partial benefits, the benefits may last longer than 26 weeks.
The maximum benefit payment may not exceed 26 times the WBA, plus 26 times the
dependent’s allowance.
● Dependents’ Allowance - A claimant may receive an additional $8 in weekly benefits for
each dependent child (up to a maximum of five children). A dependent child is a son,
daughter, stepson, stepdaughter, or legally adopted child (not grandchild or foster
children) whom the claimant supports, who is under age 16 when the claim is filed. A
claimant’s weekly benefit amount, including dependents’ allowance, can not exceed the
maximum weekly benefit amount ($430). Only one parent can claim dependents’
allowance for an individual child. Dependents’ allowances are charged to employers’
accounts.
REVIEWING BENEFIT CHARGES TO YOUR ACCOUNT
Reviewing benefit charges is probably the most important step in the UI management
process. Contributory employers are notified of any benefits charged during the previous
calendar quarter through the Benefit Payments Charge Statement. These charges affect a
contributory employer’s experience rating. The Benefit Payments Charge Statement is not a
bill. Contributory employers pay UI contributions (taxes) by the quarterly due date.
Reimbursable employers (not-for-profit employers and government entities) are notified of
benefits charged during the previous calendar quarter via the Statement of Reimbursable
Benefits Paid correspondence. This statement is a bill.
● An employer’s Benefit Payments Charge Statement or Statement of Reimbursable
Benefits Paid is available in BEACON and sent via an employer’s preferred
communication method. To view in BEACON, select the Correspondence option from the
left menu, then select the Search Button to view all correspondence.
Maryland DUI Communications 26
Employers may protest improper or incorrect benefit charges (on either the Benefit
Payments Charge Statement or the Statement of Reimbursable Benefits Paid) within 30
days of the notice/statement date. This is the employer’s last chance to protest these
charges. Instructions for requesting reviews of charges an employer believes are incorrect
are listed at the bottom of the statement.
NON-CHARGES AND CREDITS
Maryland UI law provides for relief from benefit charging and credits for repayments in
certain circumstances. However, non-charging does not affect entitlement or eligibility, and
eligible claimants may still collect benefits. The non-charging provisions are not applicable
for reimbursing employers, except for continuous part-time employment. Reasons for
non-charging and credit provisions are included below:
● Voluntary quit without good cause;
● Voluntary quit for a better job;
● Quit to attend approved training;
● Discharge for reasons which constitute gross misconduct in connection with the work;
● Discharge for reasons which constitute aggravated misconduct in connection with the
work;
● If the claimant is originally granted and paid benefits, but upon appeal is later
disqualified, a credit will be given for benefits paid. Credits are only given to
reimbursing employers when the claimant repays any benefits improperly paid.
Subsequent benefits will only be charged if the claimant resolves the disqualification
and the benefits are otherwise payable; and,
● If a claimant has both full-time and part-time employment, loses a full-time job, but
continues to work a part-time job, partial benefits will not be charged to the part-time
employer’s account if the claimant remains employed. Employers who receive a Request
for Separation Information for claimants who are employed part-time should note the
claimant’s continued part-time status.
HEARINGS AND APPEALS
If an employer disagrees with a determination, the employer may file an appeal (within 15
days of the mailing date of the determination). Ensure that the appeal is submitted
(postmarked, if mailing) on or before the filing deadline, as stated on the determination. It
is helpful if the employer includes a copy of the determination. Instructions for filing an
appeal are included on the determination and on the UI Appeals webpage. The most
efficient way for an employer to file an appeal is to use BEACON (select the
Correspondence tab from the BEACON portal’s left menu, then select the search button. If
you have an appealable determination, there will be a “File Appeal” hyperlink in the same
row as the determination. Select the link and follow the prompts). Third-party agents may
also file appeals on behalf of their clients.
Maryland DUI Communications 27
Include the following on the appeal:
❏ Claimant’s name;
❏ Social Security number;
❏ Employer’s business name;
❏ Employer account number; and,
❏ Reason for appeal.
Submit the appeal by the filing deadline listed on the determination. If submitting
through mail, ensure that appeal is postmarked by the filing deadline.
★ It is helpful to attach a copy of the determination you are appealing with your
appeal letter.
★ Timely appeal requests at this level will result in an appeal hearing.
When an employer receives notice of the appeal hearing, the employer should make copies
of pertinent documentation, such as the notice of termination, letter of resignation, and
written warnings, etc. Additionally, an employer should ensure that the claimant’s
supervisor and any witnesses are available to attend the hearing. This hearing may be an
employer’s only opportunity to present evidence and testimony. If an employer does not
attend an appeal hearing, the determination may remain unchanged or a decision being
made only on the claimant’s testimony. Although hearsay testimony is admissible in
administrative hearings, hearsay testimony may not be given the same weight as sworn,
first-hand testimony. Postponements must be requested in writing at least three business
days before the hearing and can be followed up with a phone call to the Lower Appeals
Division at (410) 767-2421. However, requesting a postponement does not guarantee a
postponement will be granted.
If an employer disagrees with a Lower Appeals decision, the employer may request an
appeal to the Board of Appeals. The decision contains specific directions for requesting an
appeal. Questions concerning Lower Appeals should be directed to (410) 767-2421 or by
Appeals decisions and cases before the Board of Appeals should be directed to
FACT-FINDING INTERVIEWS
If the reason for separation given by the employer on the Request for Separation
Information notice is something other than layoff or lack of work, the employer may be
contacted by telephone to provide additional information when the claimant’s fact-finding
interview is held. It is important for an employer to respond to any telephone message
and/or request for information within 48 hours. If the employer does not respond within 48
hours, a determination will be made based on the information provided by the claimant.
Fact-finding interviews are held by telephone. These interviews are held to obtain a
statement from the claimant about the facts surrounding their separation from
employment and/or availability for work. The claimant gives a statement to the Division
claims specialist, is informed of the information provided by the employer, and is allowed
Maryland DUI Communications 28
to rebut the employer’s comments if the claimant disagrees with them. If the claimant
provides information in rebuttal that the employer has not addressed, the employer will be
contacted again and provided the opportunity to rebut the claimant information.
Frequently, additional information is needed when the separation is considered a
discharge. The employer may be contacted to discuss some of the issues raised below
during a telephone interview. The burden of proof in a discharge is on the employer.
1. Culminating Event - What event brought about the termination of an employee? This is
the most important information the Division will use to make the non-monetary
determination of eligibility. If the culminating event was not within the claimant’s
control, the claimant may be allowed benefits. While the details regarding the
culminating event are important, employers should be able to provide dates and types
of disciplinary action taken previously.
2. Absenteeism/Tardiness - An employer should provide the dates of warnings, specify
whether they were oral or written warnings, and should distinguish between excused
and unexcused absenteeism and lateness. Did the employer require a medical slip to
justify the claimant’s absences? Were there any patterns of absence or tardiness, such
as on Mondays and Fridays or before and after holidays? Failure to call in should be
noted in the employee’s attendance records and should be discussed with the employee
during counseling/warning sessions. The reason for separation should include rule
violations.
3. Rule Violation - Employers should state the rule violated and provide details. In
addition, employers should describe any warnings, the dates the warnings were given,
and note if the rule is in an employee handbook. Employers should also describe the
consequences of the rule violation and indicate how the employee was made aware of
the rule(s).
4. Insubordination - Explain exactly what was said and done in detail. When did the
incident occur? Were there witnesses? Were threats or abusive language used? Did the
employee refuse to perform duties which were part of their job description? What were
the consequences of their insubordination?
5. Conviction for Criminal Offense - If the employer pressed charges but the matter is
unresolved, the employer should include this information during the telephone
interview. A criminal offense that is not directly against the employer may not be
disqualifying. The Division will disqualify the claimant if the offense was in connection
with employment. To determine if the actions are in connection with employment, the
Division considers:
● Was there a breach of duty to the
employer?
● Did the act occur during work hours?
● Did the act occur on the employer’s
premises?
Maryland DUI Communications 29
● Did the act occur while the employee
was engaged in their work?
● Did the employee take advantage of
the employment relationship to
commit the act?
6. Discrepancy - If discrepancies exist and cannot be resolved, the claimant and the
employer will be scheduled at a specific date and time to participate in a conference
call with a Division representative to resolve the issue(s). This type of hearing is called
a predetermination or predetermination hearing. This hearing allows both parties the
opportunity to provide and offer rebuttals during the conference call. Both the claimant
and the employer have the right to appeal this determination within 30 days. The last
day to file an appeal and instructions about how to proceed are noted on the form.
Once a determination is made, either from a fact-finding interview or a hearing, a
Notice of Benefit Determination (DUI 222) is sent (via BEACON and the individual’s
preferred communication method) to the claimant and the employer. The Notice of
Benefit Determination will include the following:
❏ Issue(s) adjudicated;
❏ Applicable section(s) of the Maryland UI Law;
❏ Reason for decision to allow or deny benefits;
❏ If benefits are denied, it will indicate the penalty that must be served before
benefits may be paid;
❏ If benefits are denied and the claimant is already receiving benefits, the Notice
of Benefit Determination will show the overpayment amount due because of
improperly paid benefits.
NOTE: In a circumstance where the determination to pay a claimant benefits is reversed
and a claimant is overpaid benefits, an employer will be charged for any benefits paid if
the employer did not provide timely or adequate information during the fact-finding
interview and determination. If the employer did provide adequate and timely information,
the employer will be relieved of the charges for the overpaid benefits.
LAYOFF, MASS LAYOFF, OR LACK OF WORK
If a layoff affects 24 or fewer workers, the employer must complete a separate Request for
Separation Information form for each laid-off worker who files a claim for UI benefits. All
requested information must be entered on this form, including the return-to-work date, if
any. If a laid-off claimant fails to return to work, the Division should be notified (see the
New Return-to-Work Date and Job Refusal Application for Employers information under the
Quick Highlights for Employers section of this guide). An employer experiencing a mass
layoff (affecting 25 or more workers) that is permanent, indefinite, or for seven days or
more, is required to inform the Division at least 48 hours in advance. Employers can report
a mass layoff online in BEACON (select Benefit Services from your portal’s left menu, then
select Report Mass Layoff and follow the prompts). If an employer does not have advance
knowledge of the layoff, the list of affected workers must be submitted within 48 hours
Maryland DUI Communications 30
after the commencement of the layoff. The list must be ordered alphabetically or by Social
Security numbers and include the following:
Employees’ names and Social Security
numbers;
Each employee's last weekly or hourly
pay/rate;
Additional information concerning bonus
pay, vacation or holiday pay, and/or
severance pay;
Indicate every worker who receives pension
or retirement pay, the amount received, and
whether or not the worker contributed to it;
Expected date of recall, if known;
Last day of work and reason for layoff.
This information will prevent the generation of individual separation notices. It is to the
employer’s advantage to provide the information to the Division in advance. Upon
notification, the Secretary of Labor may adopt a plan modifying reporting requirements for
these employees. Under this plan, the Division may distribute applications or establish
dedicated call times for the laid off workers at claim centers or a designated job site. These
applications, upon completion and returned in accordance with the plan, will constitute
the employees’ registration for work and claim for benefits. UI benefits are not payable for
any weeks in which the individual is receiving wages in lieu of notice.
NOTE: The federal Worker Adjustment and Retraining Notification (WARN) Act requires
employers of 100 or more workers, in certain instances, to provide 60 days’ notice of any
mass layoff or plant closure. Employers are potentially liable for failure to provide notice.
The Dislocated Workers Unit is required to provide Rapid Response assistance to workers
impacted by a plant closure or mass layoff. These services, which may be provided on-site,
include assessment, testing, job search assistance, educational remediation and training.
Employers may fill out a Dislocation Event Form to notify the unit of impending layoffs or
business closures. When required, notice must be given to the workers, the state, and to
local elected officials. Failure to provide notice could result in full back pay to the workers
and a fine of $500 per day. We recommend employers contact legal counsel. For more ,
contact the Maryland Department of Labor Dislocated Workers Unit at (410) 767-2833.
REPORT NEW HIRES, REHIRES
1. The Maryland New Hire Registry - The Maryland New Hire Registry is a tool to protect
against UI overpayments and fraud, public assistance fraud, and to assist in the
enforcement of child support. Employers who are covered under the Maryland UI Law
are required to report all new employees, re-hires, or recalled employees to a central
registry.
Maryland DUI Communications 31
2. Within 20 days of an employee’s first day of work, employers must report:
● Employee’s name and Social Security
number;
● First day of work;
● Maryland UI 10-digit account number;
● Whether health insurance is available;
● Employee’s home address;
● Employer’s name and address;
● Federal Employer Identification
Number.
Several additional data elements are requested on a voluntary basis. For more information,
contact the Maryland New Hire Registry Help Desk by phone at (410) 281-6000 or 1-(888)
MDHIRES, by fax at (410) 281-6004, or see mdnewhire.com.
BANKRUPTCY
Employers with questions about bankruptcy can call the Employer Call Center at
410-949-0033. An employer should notify the Division if the employer’s business is in
bankruptcy. The notice should be sent by fax to 410-333-5059, by e-mail to
[email protected], or by mail to:
Maryland Division of Unemployment Insurance
Legal Services and Collection
1100 N. Eutaw Street, Room 401
Baltimore, MD 21201
The information concerning the bankruptcy should include the: date of bankruptcy filing;
state of bankruptcy filing; chapter number and case number, if known; attorney’s name and
telephone number, if represented by an attorney; and, if the business is closed, provide the
date that the business ceased operations.
FRAUD
It is considered fraud if a person files for UI benefits while employed without reporting
wages, or provides false or insufficient information to obtain or increase benefits.
Information regarding fraudulent claims should be reported to the Division for
investigation. Suspected UI fraud can be reported to the Division by submitting a Request
fax to 410-767-2610, or mail to:
Benefit Payment Control,
1100 North Eutaw Street, Room 206,
Baltimore, MD 21201
Maryland DUI Communications 32
METHODS TO ENSURE PROPER PAYMENTS
Effective claims management procedures by employers are essential to controlling the
number, and severity, of UI claims. Tips for effective management include:
Social Security Numbers
● Verify Social Security numbers at the time of hire;
● Ask to see employees’ Social Security cards. If they do not
have cards, they should be instructed to apply for them;
● Verify the claimant’s name and Social Security number.
Provide complete and accurate dates of employment,
wage information, and any other payments (severance
pay, pension, vacation pay).
Internal Processes
● Establish a central location for claims handling;
● Assign responsibility and control of claims processing to
one person (and a back-up) or department;
● Emphasize the consequences and impact on your account
of untimely, inaccurate, or incomplete responses.
● Require personnel to forward UI forms promptly to the
central location for claims processing;
Employer Practices
● Sign and date all correspondence, including any forms, for
proper documentation. Include contact information
(phone number and e-mail) on forms in case the Division
needs additional information.
● Failure to respond to Requests for Separation Information
or provide wage information by the due date can result in
a $15 penalty.
The Division uses numerous methods to prevent improper benefit payments, which are
costly to employers, including the techniques listed below.
1. Post Audit - The Post Audit is a computerized crossmatch that compares benefits paid
to claimants with employer wage reports. The purpose is to detect improper payments
to claimants who were employed while receiving UI benefits. When a match occurs, the
employer is sent an Audit Form (DUI 330-M). Employers must complete the form and
return it to the Division by the due date.
2. Benefit Accuracy Measurement (BAM) - The BAM program aims to ensure UI benefit
payment accuracy, reduce fraud and errors, and improve UI program efficiency. BAM
investigators audit randomly-selected claims to determine whether the claimant was
eligible to receive payment for that week. During an audit, employers are asked to
substantiate information, including wages, work search contacts reported by the
claimant and the reasons for a claimant’s separation or reduced hours.
Maryland DUI Communications 33
BAM investigations are conducted by phone, e-mail, postal mail, or fax, and certain
items may require an employer’s signature. If the audit uncovers an improper payment,
the Division determines if the improper payment resulted from an action by a claimant,
the Division, employer, or any combination of these.
3. Tax Performance Systems - The Tax Performance Systems program enables the Division
to determine the cause of tax-related errors. The Division continuously informs
employers about ways to reduce costly errors that result in improper experience rating
charges and improper UI benefit payments.
NOTE: Please cooperate in answering investigators’ inquiries. Eliminating fraud and errors
saves employers money and helps ensure the integrity of the UI program.
MARYLAND WORKFORCE EXCHANGE (MWE)
MWE provides reemployment services for individuals seeking work, as well as hiring and
business development opportunities for employers. Employers can use MWE to:
● administer the hiring process free online or
at an American Job Center;
● gain exposure for job openings;
● access economic and real-time local labor
force data;
● create/manage a recruitment strategy
online;
● maintain a database of job
candidates and rank them in
preferred order;
● enroll in workshops or business
seminars; and,
● find business and economic
development resources.
Employers can use MWE’s online job-matching tool to gain exposure for their job openings,
grow their talent pipeland monitor current economic trends or real-time labor market
information. To access these features, visit the MWE website.
UNEMPLOYMENT INSURANCE BENEFITS
All unemployed workers are entitled to file a claim for UI benefits, although the right to file
does not guarantee eligibility for benefits under Maryland’s UI law. When a claimant files
for benefits, all of the employers the claimant worked for during the claimant’s base period
are notified (for more about base periods, see the Covered Employment and Exemptions
section of this guide).
● An employer must provide information about the claimant’s separation from
employment (by completing and returning the Request for Separation Information
form). For details, see the Request for Separation Information section of this guide.
When an individual files a claim for benefits, the Division will determine if the claimant
meets monetary and non-monetary eligibility requirements to be eligible for UI benefits.
Maryland DUI Communications 34
Monetary Eligibility
The Division will determine whether a
claimant earned enough wages in covered
employment during the base period
(standard or alternate) to be eligible for UI
benefits.
A claimant must have wages in at least two,
not necessarily consecutive, calendar
quarters in the base period to be eligible.
Non-Monetary Eligibility
To determine if a claimant meets
non-monetary eligibility requirements, the
Division considers several factors, including
whether the claimant is:
● able to work, available for work, and
actively seeking work;
● receiving any deductible pay (vacation,
holiday, or special pay, severance,
retirement/pension payments, or back
pay/damages);
● the reason the claimant separated from
employment.
To be eligible for benefits each week, a claimant must also meet the requirements below:
● Be able to work, available for work, and
actively seek work (meet all work search
requirements);
● Not place any undue restriction on their
availability for work or the work they
will accept;
● File timely weekly claim certifications;
● Report all earnings;
● Accept suitable work, when offered.
● Be available and contact the Division
and/or the Maryland Division of
Workforce Development and Adult
Learning (DWDAL) when instructed.
A claimant’s previous job experience, training, wage level, and other factors are considered
in determining suitability of a job offer. If a claimant is determined to be ineligible for UI
benefits, the claimant has a right to file an appeal. If the issue involves an employer, the
employer also has the right to appeal (for more, see the Hearings and Appeals section of
this guide). A claimant’s weekly benefit amount is based on the claimant’s earnings during
a base period (these earnings are reported by all base period employers via a quarterly
contribution report). For details about the WBA, see page Benefit Charging section of this
guide). To request benefit payment for each week of unemployment, the claimant must file
a weekly claim certification. When filing each claim certification, the claimant answers
questions concerning eligibility. If an answer provided brings into question the claimant’s
eligibility for UI benefits, a telephone fact-finding interview is scheduled. If information is
Maryland DUI Communications 35
required from the employer, the employer is also contacted. For more about fact-finding
interviews, see the Fact-Finding Interviews section of this guide. The filing process
continues until the claimant becomes either re-employed, ineligible for benefits, exhausts
benefit entitlement, or stops filing for benefits.
PART-TIME WORKERS
A part-time worker is an individual whose availability for work is restricted to part-time
work and who works predominantly on a part-time basis throughout the year (at least 20
hours per week). A part-time worker meets the Maryland UI law requirements if:
● the worker is eligible for benefits based on wages that are predominantly earned from
part-time work;
● is actively seeking part-time work;
● is available for part-time work for at least the number of hours worked at the part-time
worker’s previous employment;
● does not impose any other restrictions on the part-time worker’s ability to work or
availability for work; and,
● is in a labor market in which a reasonable demand exists for part-time work.
NOTE: A part-time worker is not considered to be unemployed if the part-time worker is
working all hours according to the part-time worker’s specified availability, regardless of
the amount of money the part-time worker is earning. Therefore, the part-time worker will
not be eligible for partial benefits if working all available hours.
PARTIAL BENEFITS
A claimant who was laid off from a full-time job, but is working a part-time job while
collecting UI benefits (and earning gross wages that are less than their weekly benefit
amount), may receive partial UI benefits. The claimant may earn up to $50 without any
money being deducted from the weekly benefit amount (WBA). After $50, earnings are
deducted dollar for dollar. If a claimant’s earnings equal/exceed their WBA, benefits are not
payable. Employers must report employee wages to the Division (by filing quarterly
contribution reports). When the Division requests wages for an employee during a specific
week, an employer should ensure:
● The wages are reported when earned, not when paid;
● The gross amount of wages, before taxes and other deductions, is reported; and,
● The wages are reported for the week requested. For UI purposes, a week begins on
Sunday and ends on Saturday. The week may not correspond with an employer’s pay
period. An employer may need to calculate an employee’s daily earnings to submit the
requested information properly.
NOTE: For UI tax purposes, wages are reported when paid. However, for UI benefit
purposes, wages are reported when earned.
Maryland DUI Communications 36
Claimants who do not report earnings during the claim process are committing UI fraud. If
an employer suspects UI fraud, the employer should complete the Request for
Investigation of Unemployment Insurance Fraud form.
DISQUALIFICATIONS
Claimants may be disqualified for benefits if they cannot satisfy the requirement that the
job loss was through no fault of their own. Under certain circumstances, claimants may
qualify for UI benefits even if they voluntarily quit employment or are discharged for good
cause. The possible disqualifications are as follows:
1. Voluntary Resignation - When an individual voluntarily leaves their job, the burden of
proof is on the claimant to show that the quit was “with good cause or valid
circumstances.” The claimant must show that they made every reasonable effort to
remain employed. If a claimant quits for reasons that are directly attributable to the
employment (conditions of employment or actions of the employing unit), it may be
determined to be for good cause. In that circumstance, no penalty is assessed, and the
employer’s account is charged.
If a claimant quits for reasons not directly attributable to the claimant’s employer, but
has made reasonable efforts to remain employed and shows that the claimant quit for
valid circumstances, a five to 10 week penalty may be imposed (starting on the Sunday
prior to the last day of work). The claimant will not receive benefit payments during
that time period. When the penalty ends, benefits are payable, but the employer’s
account is not charged. If the individual quits without good cause or valid
circumstances, the claimant will not receive UI benefits until:
● the claimant becomes reemployed and earns 15 times their WBA; and,
● the claimant loses the new job through no fault of their own.
If it is determined that a claimant voluntarily quit employment without good cause and
subsequently receives benefits, the employer from whom the individual quit will be
relieved of benefit charges. An individual is not disqualified from receiving benefits if
the individual quit a part-time job before losing a full-time job. Voluntarily quitting
employment to attend school, follow a spouse to a new location (if the transfer is not
mandatory) or to become self-employed is held to be without good cause or valid
circumstances and the maximum penalty is imposed. However, a five to 10-week
penalty is imposed for a claimant who quits a job to: (a) follow a
military/military-related spouse due to the spouse’s mandatory transfer; or, (b) to follow
a spouse to a new location if the spouse’s employer mandates the transfer.
2. Discharges and Suspensions - Discharges and suspensions are separations initiated by
the employer. The employer is responsible for showing that the claimant’s behavior
constituted misconduct in connection with the work. The employee’s behavior must
clearly be a willful disregard for the employer’s interest, have a direct adverse effect on
the employer’s business, and must be reasonably related in time to the act causing the
Maryland DUI Communications 37
separation. Employers must outline the expected behavior of the employees either
verbally or in writing. Employers should document all warnings, including who gave
the warnings, why they were given, and the dates they were given. The Division
explores the following in imposing a disqualification:
● What happened on the last day of work that caused the separation?
● How soon after the alleged misconduct did the discharge or suspension occur?
There are three discharge disqualification categories under Maryland’s UI law: simple
misconduct, gross misconduct, and aggravated misconduct.
1. Simple Misconduct - Simple misconduct means a violation of some established rule or
policy of the employer, a disregard of the employer’s best interests, a dereliction of
duty, or a course of wrongful conduct. The penalty for simple misconduct is the delay of
receipt of benefits for 10 to 15 weeks from the Sunday prior to the last day of work.
When the penalty ends, benefits are payable and the employer’s account is charged for
any benefits paid after the penalty has been served. Simple negligence with no harmful
intent is not misconduct, nor is inefficiency, unsatisfactory conduct that is beyond the
claimant’s control, or good faith error of judgment or discretion. Under these situations,
no penalty is assessed, benefits are payable, and the employer’s account is charged.
2. Gross Misconduct - Gross misconduct means conduct that is either:
● a deliberate and willful disregard of standards of behavior that an employing unit
rightfully expects and which shows gross indifference to the employing unit’s
interests; or,
● repeated violations of employment rules that prove a regular and wanton disregard
of the employee’s obligations.
The penalty for gross misconduct is the denial of the claimant’s benefits until the
claimant becomes reemployed, earns 25 times their weekly benefit amount (WBA), and
thereafter becomes unemployed through no fault of their own. The employer is not
charged for any benefits paid after the penalty is satisfied.
3. Aggravated Misconduct - Aggravated misconduct is defined as behavior of the claimant
that consists of physical assault, property loss, or property damage so serious that
neither simple nor gross misconduct penalties would apply. The claimant’s act must
have been committed with actual malice and a deliberate disregard for the property,
safety, and lives of others, including the employer and those associated with the
employer as defined in the law. Malice is the intent to cause physical harm, property
loss, or property damage.
● If the action was accidental, aggravated misconduct does not exist.
● If the action was intentional but not meant to cause any harm, loss or damage,
aggravated misconduct does not exist. The penalty for aggravated misconduct is the
Maryland DUI Communications 38
denial of the claimant’s benefits until the claimant becomes re-employed, earns 30
times their WBA, and thereafter becomes unemployed through no fault of their own.
● If a claimant’s reason for separation from the employer is determined to be
aggravated misconduct, the claimant is disqualified and serves the penalty. Any
benefits eventually paid will not be charged to the employer’s account.
Benefits are denied until the individual becomes reemployed and earns 30 times their
weekly benefit amount in covered employment income. Any future benefits paid to the
employee (who committed the aggravated assault) will not be charged to the employer
against whom the aggravated assault was committed. For UI purposes, the wages the
claimant earned under this employer are deleted.
NOTE: A penalty is self-served when an individual satisfies all penalties of time and
earnings under the Maryland UI Law prior to filing a claim for UI benefits. A claimant may
be paid UI benefits and the claimant’s previous employer may be charged for benefits if the
claimant has self-served a penalty.
ABLE, AVAILABLE, AND ACTIVE SEARCH FOR WORK
To be eligible for UI benefits, a claimant must be able to work, available for work, and
actively seeking full-time work (unless designated as a part-time worker) without any
unreasonable restrictions on the hours/days that the claimant will work. For information
about work search requirements, see the Maryland Work Search Requirements webpage.
● The Division randomly audits claims, and all work search contacts are subject to
verification. It is important that employers keep records of who contacted them for
employment, how they were contacted, the date the contact was made, the type of
work applied for, and the result of the job contact.
There are some exemptions to the work search requirements:
1. Work Search Exemptions - If an employer shuts down operations for up to 10 weeks
and provides employees with a definite return-to-work date at the beginning of the
layoff, the claimants are exempt from actively seeking work. The employer must
provide the Division with the return to work date. If the layoff extends beyond 10
weeks, the individual will need to actively search for work. The exemption cannot be
extended beyond the allowed 10 weeks, except as noted below.
2. Extended Work Search Exemption - If an employer shuts down operations for up to 26
weeks, claimants are exempt from the active work search requirements if:
● The shutdown is for a certain and definable period not exceeding 26 weeks;
● The work search exemption is jointly requested by the employer and the affected
employees;
● The employer provides that all of the employees included in the exemption shall
return to work for the employer; and,
Maryland DUI Communications 39
● The Division determines that the work search exemption during the shutdown will
promote productivity and economic stability within the state.
For example, this type of shutdown could be used if an employer is shutting down its
operations to modernize. This exemption will not be granted for seasonal layoffs. For
more information, contact the Employer Call Center at 410-949-0033.
3. Approved Training - Claimants enrolled in a training program approved by the Division,
who are otherwise eligible to receive benefits, are exempt from actively seeking work.
RECEIPT OF PAYMENTS OTHER THAN WAGES
A claimant is required to report certain payments (listed below) on the initial claim.
Claimants who receive vacation, holiday, bonus, back pay or damages, and/or other special
payments after filing an initial claim must call a claims agent (667-207-6520) to report it.
Claimants who do not report these payments are committing UI fraud.
● Severance payments are deductible from UI benefits and are prorated based on the
individual’s last weekly pay rate.
● Vacation or holiday pay is deducted from UI benefits only if the employer provides a
definite return-to-work date on or before the last day of work.
● Bonus pay may reduce or prevent the receipt of UI benefits, depending on the week(s)
to which it is attributed.
● Pension or annuity payments from a base period employer are deductible from UI
benefits.
REFUSAL OF SUITABLE WORK
NOTE: When an employer offers a job to a claimant who is receiving UI benefits or recalls a
former employee in layoff status and the individual refuses the job/fails to return, the
employer must notify the Division within 15 days of refusal through BEACON. The Division
will determine whether the claimant should be paid or denied benefits. The Division may
request additional information from the employer regarding the job offer and, if known,
the reason for refusal. A claimant must accept offers of suitable work. The factors
considered in determining suitability include:
● training (occupation);
● work experience;
● prior wages;
● commuting distance;
● prospect of securing work in claimant’s
customary occupation; and,
● length of time claimant has been
unemployed.
A job is not considered suitable if: it is vacant as a direct result of a labor dispute; if the
wages, hours, or other conditions are less favorable than for other similar jobs in the local
area; if there is an unreasonable degree of risk to the individual; or if a claimant is required
to either join a company union, resign from a union, or be required to refrain from joining a
Maryland DUI Communications 40
labor union. If a claimant refuses suitable work without good cause, the individual will be
disqualified from receiving UI benefits for either:
● five to 10 weeks (from the Sunday prior to the date the job was refused); or,
● until the claimant becomes re-employed, earns 10 times the weekly benefit amount,
and thereafter becomes unemployed through no fault of their own.
If a labor dispute exists at an employer’s business and the striking employees file for UI
benefits, an offer by the employer to return to work under the same conditions that existed
prior to the labor dispute may constitute a suitable offer of work. The employees may be
ineligible for UI benefits if they refuse to return to work.
LABOR DISPUTES
Claims for benefits by individuals participating in a labor dispute are adjudicated by the
Board of Appeals, once it has assumed jurisdiction, or by a special examiner. Employers
must inform the Division via BEACON when a labor dispute begins. Employers may file a
labor dispute by going to the Benefit Services tab and selecting, “Report Labor Dispute.”
Notice of the labor dispute must be made within 48 hours and must include a list of the
names and Social Security numbers of the affected workers. The Division will then contact
the employer to obtain additional information. A claimant is denied benefits during the
stoppage of work due to a labor dispute, other than a lockout, if the claimant:
● is participating in, financing, or directly interested in the labor dispute; and,
● belongs to a grade or class of workers participating, financing, or directly interested in
the labor dispute.
WORK SHARING PROGRAM
Under the Work Sharing program, employers facing a temporary, non-cyclical decline in
business (due to lower economic activity) can temporarily reduce employees’ hours, as
opposed to laying off workers. Employers can reduce hours by at least 10 percent, and no
more than 60 percent, among all participating employees in a unit. Employees receive
partial UI benefits based on their reduction in work hours and pay. Work Sharing helps to:
● Prevent layoffs;
● Keep workforce in place;
● Maintain employees’ skills;
● Retain workforce;
● Maintain affirmative action goals;
● Improve employee morale.
When the economy stabilizes, the employer can immediately restore its workforce. Work
Sharing may be used across an entire business or for a portion of an employer’s operation,
(department, shift, individual plant, etc.). It must, however, equally affect all employees of
the designated employing unit. For more, see the Work Sharing web page, Employers’ FAQs
Maryland DUI Communications 41
SUPPLEMENTAL UNEMPLOYMENT BENEFITS (SUB)
Supplemental Unemployment Benefits (SUB) are private plans that provide additional,
non-governmental benefits to unemployed workers. Common SUB plan features include:
● A contractual agreement between an
employer and employees (usually a
union);
● Employer financing. Typically, an
employer pays an established amount,
such as 15 cents per hour worked, into a
separate fund. Employer contributions
continue until a predetermined funding
level is reached;
● An independent trustee administers the
fund; and,
● To qualify for SUB, an individual must
separate from a job and be eligible for
regular UI benefits. Under Maryland law,
SUB plans do not affect a claimant’s
weekly benefit amount.
TRADE ADJUSTMENT ASSISTANCE (TAA) PROGRAM
The federal TAA program provides benefits to workers who are unemployed or on reduced
work schedules due to the impact of foreign competition. TAA is funded by federal general
revenues. Benefits include:
● Trade Readjustment Allowances (TRA) which equal the claimant’s weekly benefit
amount. TRA benefits are paid after the claimant exhausts regular UI benefits and are
normally payable for 26 weeks. Additional TRA benefits may be paid if the affected
worker is in training; and,
● Relocation allowances, work search, job training, and a wage subsidy for up to two
years for reemployed workers ages 50 and over.
For more, see the TAA webpage on the Maryland Department of Labor website.
EXTENDED BENEFITS (EB) PROGRAM
During periods of high unemployment, eligible claimants may receive additional weeks of
UI benefits through the federal-state EB program. Claimants can receive EB only after their
regular UI benefits are exhausted. If Maryland meets the requirements to offer EB,
information will be posted on the Division website.
Maryland DUI Communications 42
POSTERS REQUIRED BY LAW
Employers are required to display two posters, Benefit Entitlement, and Health Insurance
Coverage, in a highly visible area of the workplace. Employers will receive these posters
upon registration as a Maryland employer. To receive additional copies of the posters, call
410-949-0033 or download the posters from the Division website.
Health Insurance Coverage Poster (DUI 6116)
Maryland DUI Communications 43
Benefit Entitlement Poster (DUI 328)
Maryland DUI Communications 44
GUIDELINES FOR JOB INTERVIEW AND PRE-EMPLOYMENT INQUIRIES
Employers wanting to conduct fair and lawful recruitment and selection processes are
sometimes confused about the legality or appropriateness of some pre-employment
inquiries. Listed below are guidelines for determining appropriate and nondiscriminatory
questions for job applications/pre-employment interviews found in state and federal
equal employment opportunity laws and guidelines (primarily Title VII of the Civil Rights
Act of 1964, as amended, the Equal Employment Opportunity Commission’s (EEOC) 1981
Pre-Employment Inquiries Guidelines, the Americans with Disabilities Act of 1990 (ADA)
and Article 49B of the Annotated Code of Maryland). For more guidance, see the
Maryland Human Relations Commission’s Guidelines on Employee Selection Procedures
and the EEOC’s Technical Assistance Guide on the Employment Provisions of Title I of
ADA. This information is Not A Substitute For Legal Advice.
Employers should:
● Standardize and structure the selection process;
● Determine essential requirements of the job before recruiting and interviewing;
● Develop written, job-related position descriptions which detail these essential
requirements;
● Prepare written questions;
● Ask only those questions necessary to determine qualifications and suitability, and
ask all questions of all applicants/candidates; and,
● Maintain job-related documentation.
General Questions Employers Should Ask Themselves:
● Will the answers to this question, if used in making a selection, have a disparate
effect in screening out minorities or members of one sex?
● Will the response to this question screen out qualified candidates because of their
disability before their actual ability to do the job is evaluated?
● Is this information necessary to judge an applicant’s competence/qualifications?
● Is this question permitted on the basis of a bona fide occupational qualification?
● Is the employer a federal contractor or a participant in a program subject to special
employment/selection guidelines?
SUBJECT: AGE
Lawful Inquiries/Requirements
● Whether applicant meets the minimum age requirement set by law, if required as a
Bona Fide Occupational Qualification (BFOQ), or after hire, if inquiry serves a
legitimate record-keeping purpose.
Unlawful Inquiries/Requirements
● That applicant states age or date of birth. That applicant provides proof of age (birth
certificate). Specifications such as: “young,” “college student,” “recent college
graduate,” or “retired.”
Maryland DUI Communications 45
SUBJECT: ARREST AND CONVICTIONS
Lawful Inquiries/Requirements
● Inquiries about convictions that bear a direct relationship to the job and have not
been expunged or sealed by the courts. Consideration should be given to the nature,
recentness, and rehabilitation.
Unlawful Inquiries/Requirements
● Inquiries about a candidate’s general arrest and conviction record.
SUBJECT: CITIZENSHIP, BIRTHPLACE
Lawful Inquiries/Requirements
● After employment, verification of legal right to work (all new hires).
Unlawful Inquiries/Requirements
● Whether applicant, parents or spouse are naturalized or native-born U.S. citizens.
Birthplace of applicant, parents, or spouse. Requirement that applicant produces
naturalization papers.
SUBJECT: DEPENDENTS
Lawful Inquiries/Requirements
● Non-applicable.
Unlawful Inquiries/Requirements
● Inquiries regarding: the number and ages of children; what child care arrangements
have been made; family planning.
SUBJECT: DISABILITY
Lawful Inquiries/Requirements
● Whether the applicant can perform the essential functions of the job with or without
reasonable accommodation. That applicant can demonstrate how they would perform
the job and with what accommodation(s). After a job offer, but before hire, require
medical examination for all similarly-situated entering employees.
Unlawful Inquiries/Requirements
● Requirement that applicant provide information about workers’ compensation
claim(s) before a job offer. General inquiries into the applicant’s state of health or the
nature and severity of a disability.
SUBJECT: DRIVER’S LICENSE
Lawful Inquiries/Requirements
● Inquiry if driving is necessary to the job.
Unlawful Inquiries/Requirements
● Inquiring if all applicants have a valid driver’s license, regardless of job.
SUBJECT: MARITAL STATUS
Lawful Inquiries/Requirements
● Non-applicable.
Maryland DUI Communications 46
Unlawful Inquiries/Requirements
● Whether applicant is: single, married, divorced, widowed, etc.; Mr., Mrs., Miss, Ms.
Inquiries regarding the names and ages of spouse or children.
SUBJECT: MILITARY SERVICE
Lawful Inquiries/Requirements
● Job related inquiries into military experience in the U.S. Armed Forces or state militia
(e.g. branch, occupational specialty).
Unlawful Inquiries/Requirements
● Inquiries regarding foreign military experience. Whether honorably discharged.
SUBJECT: NAME
Lawful Inquiries/Requirements
● Whether the applicant has used another name (to verify past work record).
Unlawful Inquiries/Requirements
● Inquiries or comments about the name which would reveal applicant’s lineage,
national origin, marital status, etc. (e.g., maiden name? Mr., Mrs., Miss, Ms.?).
SUBJECT: NATIONAL ORIGIN
Lawful Inquiries/Requirements
● What languages an applicant reads, speaks, or writes fluently, if relevant to the job or
if required as a Bona Fide Occupational Qualification.
Unlawful Inquiries/Requirements
● Inquiries regarding: applicant’s nationality; ancestry; lineage or parentage; nationality
of applicant’s parents or spouse; maiden name of applicant, wife, or mother.
SUBJECT: PHOTOGRAPH
Lawful Inquiries/Requirements
● May be requested after hire (for identification).
Unlawful Inquiries/Requirements
● Request before hire.
SUBJECT: POLYGRAPH, LIE DETECTOR
Lawful Inquiries/Requirements
● Non-applicable.
Unlawful Inquiries/Requirements
● Require test be taken as a condition of employment.
SUBJECT: PROFESSIONAL ASSOCIATIONS
Lawful Inquiries/Requirements
● Inquiries regarding memberships in job-related clubs and organizations. Applicants
may omit those which reveal the race, religion, age, sex, disability, etc., of applicant.
Unlawful Inquiries/Requirements
● Requesting the names of all organizations, clubs, associations, to which the applicant
belongs. Inquiries regarding how the applicant spends their spare time.
Maryland DUI Communications 47
SUBJECT: RACE, COLOR
Lawful Inquiries/Requirements
● Non-applicable.
Unlawful Inquiries/Requirements
● Inquiries regarding: applicant’s race; color of applicant’s skin, eyes, hair or other
questions directly or indirectly indicating race or color; applicant’s height (unless a
Bona Fide Occupational Qualification).
SUBJECT: REFERENCES
Lawful Inquiries/Requirements
● Inquiring by whom the applicant was referred. Requesting names of persons willing
to provide professional or character references. Making job-related inquiries of
references.
Unlawful Inquiries/Requirements
● Requiring the submission of religious references. Inquiries of references which would
elicit information on applicant’s race, color, national origin, age, marital status,
disability, or sexual orientation.
SUBJECT: RELIGION
Lawful Inquiries/Requirements
● Inquiries regarding the normal hours of work. After hire, inquiries regarding religious
accommodations.
Unlawful Inquiries/Requirements
● Inquiries regarding applicant’s religious denomination/affiliation or religious holidays
observed. Any inquiry which would indicate or identify religious customs or holidays
observed.
SUBJECT: SEX
Lawful Inquiries/Requirements
● Inquiry only if required as a Bona Fide Occupational Qualification.
Unlawful Inquiries/Requirements
● Inquiries regarding: applicant’s sex; Mr., Mrs., Miss, Ms.; if applicant is expecting,
planning a family, or uses birth control.
SUBJECT: SEXUAL ORIENTATION
Lawful Inquiries/Requirements
● Non-applicable.
Unlawful Inquiries/Requirements
● Any inquiry concerning an applicant’s heterosexuality, homosexuality or bisexuality.
Maryland DUI Communications 48
