Title 8.5. Health Care Payroll Assessment — Subtitle 1
Statutes in effect as of October 1, 2026.
Md. Code Ann., Lab. & Empl. § 8.5-101 (2026)
Title 8.5. Health Care Payroll Assessment
Subtitle 1
§ 8.5-101LinkCopy Citation
(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 § 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 § 213(d) of the Internal Revenue Code.
(e)
“Secretary” means the Secretary of Labor.
(f)
“Wages” has the meaning stated in § 10–905 of the Tax – General Article.
Md. Code Ann., Lab. & Empl. § 8.5-102 (2026)
Title 8.5. Health Care Payroll Assessment
Subtitle 1
§ 8.5-102LinkCopy Citation
This title applies to an employer with 10,000 or more employees in the State.
Md. Code Ann., Lab. & Empl. § 8.5-103 (2026)
Title 8.5. Health Care Payroll Assessment
Subtitle 1
§ 8.5-103LinkCopy Citation
(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.
Md. Code Ann., Lab. & Empl. § 8.5-104 (2026)
Title 8.5. Health Care Payroll Assessment
Subtitle 1
§ 8.5-104LinkCopy Citation
(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.
Md. Code Ann., Lab. & Empl. § 8.5-105 (2026)
Title 8.5. Health Care Payroll Assessment
Subtitle 1
§ 8.5-105LinkCopy Citation
(a)
Failure to report in accordance with § 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 § 8.5-104 of this title shall result in the imposition by the Secretary of a civil penalty of $250,000.
Md. Code Ann., Lab. & Empl. § 8.5-106 (2026)
Title 8.5. Health Care Payroll Assessment
Subtitle 1
§ 8.5-106LinkCopy Citation
(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 § 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 § 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 § 8.5-103(a)(1)(i) of this title.
Md. Code Ann., Lab. & Empl. § 8.5-107 (2026)
Title 8.5. Health Care Payroll Assessment
Subtitle 1
§ 8.5-107LinkCopy Citation
The Secretary shall:
(1)
on an annual basis, based on the information reported under § 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 § 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 § 15-142 of the Health - General Article.