# Labor and Employment (GLE)

## Title 8.5. Health Care Payroll Assessment

### Subtitle 1

#### Section 8.5-101

(a) In this title the following words have the meanings indicated.

(b) "Employee" means all individuals employed full time or part time directly by an employer.

(c)

  (1) Except as provided in paragraph (2) of this subsection, "employer" has the meaning stated in Sec. 10-905 of the Tax - General Article.

  (2) "Employer" does not include the federal government, the State, another state, or a political subdivision of the State or another state.

(d)

  (1) "Health insurance costs" means the amount paid by an employer to provide health care or health insurance to employees in the State to the extent the costs may be deductible by an employer under federal tax law.

  (2) "Health insurance costs" includes payments for medical care, prescription drugs, vision care, medical savings accounts, and any other costs to provide health benefits as defined in Sec. 213(d) of the Internal Revenue Code.

(e) "Secretary" means the Secretary of Labor.

(f) "Wages" has the meaning stated in Sec. 10-905 of the Tax - General Article.

#### Section 8.5-102

This title applies to an employer with 10,000 or more employees in the State.

#### Section 8.5-103

(a)

  (1) On January 1, 2007, and annually thereafter, an employer shall submit on a form and in a manner approved by the Secretary:

    (i) the number of employees of the employer in the State as of 1 day in the year immediately preceding the previous calendar year as determined by the employer on an annual basis;

    (ii) the amount spent by the employer in the year immediately preceding the previous calendar year on health insurance costs in the State; and

    (iii) the percentage of payroll that was spent by the employer in the year immediately preceding the previous calendar year on health insurance costs in the State.

  (2) The Secretary shall adopt regulations that specify the information that an employer shall submit under paragraph (1) of this subsection.

  (3) The information required shall:

    (i) be designated in a report signed by the principal executive officer or an individual performing a similar function; and

    (ii) include an affidavit under penalty of perjury that the information required under paragraph (1) of this subsection:

      (1) was reviewed by the signing officer; and

      (2) is true to the best of the signing officer's knowledge, information, and belief.

(b) When calculating the percentage of payroll under subsection (a)(1)(iii) of this section, an employer may exempt:

  (1) wages paid to any employee in excess of the median household income in the State as published by the United States Census Bureau; and

  (2) wages paid to an employee who is enrolled in or eligible for Medicare.

#### Section 8.5-104

(a) An employer that is organized as a nonprofit organization that does not spend up to 6% of the total wages paid to employees in the State on health insurance costs shall pay to the Secretary an amount equal to the difference between what the employer spends for health insurance costs and an amount equal to 6% of the total wages paid to employees in the State.

(b) An employer that is not organized as a nonprofit organization and does not spend up to 8% of the total wages paid to employees in the State on health insurance costs shall pay to the Secretary an amount equal to the difference between what the employer spends for health insurance costs and an amount equal to 8% of the total wages paid to employees in the State.

(c) An employer may not deduct any payment made under subsection (a) or (b) of this section from the wages of an employee.

(d) An employer shall make the payment required under this section to the Secretary on a periodic basis as determined by the Secretary.

#### Section 8.5-105

(a) Failure to report in accordance with Sec. 8.5-103 of this title shall result in the imposition by the Secretary of a civil penalty of $250 for each day that the report is not timely filed.

(b) Failure to make the payment required under Sec. 8.5-104 of this title shall result in the imposition by the Secretary of a civil penalty of $250,000.

#### Section 8.5-106

(a) In this section, "health insurance benefits" includes payments for medical care, prescription drugs, vision care, medical savings accounts, and any other costs to provide health benefits, as defined in Sec. 213(d) of the Internal Revenue Code.

(b) On or before March 15 of each year, the Secretary shall report to the Governor and, in accordance with Sec. 2-1257 of the State Government Article, to the General Assembly on:

  (1) the name of each nonprofit and for profit employer with 10,000 or more employees in the State;

  (2) the employer's definition of full-time employee and part-time employee;

  (3) the number of full-time employees;

  (4) the number of full-time employees eligible to receive health insurance benefits;

  (5) the number of full-time employees receiving health insurance benefits from the employer;

  (6) the source of health insurance benefits for those eligible full-time employees not receiving health insurance benefits through an employer subject to reporting under this title;

  (7) the number of part-time employees;

  (8) the number of part-time employees eligible to receive health insurance benefits;

  (9) the number of part-time employees receiving health insurance benefits from the employer; and

  (10) the source of health insurance benefits for those eligible part-time employees not receiving health insurance benefits through an employer subject to reporting under this title.

(c) The information required under subsection (b) of this section shall be reported as of the information reporting date determined by the employer under Sec. 8.5-103(a)(1)(i) of this title.

#### Section 8.5-107

The Secretary shall:

(1) on an annual basis, based on the information reported under Sec. 8.5-103(a)(1)(i) of this title:

  (i) verify which employers have 10,000 or more employees in the State; and

  (ii) ensure that all employers with 10,000 or more employees in the State have made the report required under Sec. 8.5-103 of this title;

(2) adopt regulations to implement this title; and

(3) pay the revenue from the payroll assessment into the Fund created under Sec. 15-142 of the Health - General Article.

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Md. Code Ann., Lab. & Empl. (as displayed at mgaleg.maryland.gov, October 16, 2026)