Maryland recently released the 2024 Maryland Employer Reporting of 1099 Instructions and Specifications. There are significant changes to the 1099 filing process, which can be attributed to the transition to ‘Maryland Tax Connect’ (MTC). MTC has replaced SFTP for filing most 1099 forms. Forms 1099-K and 1099-S must still be filed through SFTP. Filers of 1099-K and 1099-S must contact efileW21099help@marylandtaxes.gov by December 13, 2025 to prevent the department from disabling their SFTP user ID. Certain third-party vendors should also contact the above email address to prevent the department from disabling their SFTP user ID, see pg. 7 of the guide for more information.
Payroll providers and third parties filing 1099 on employers’ behalf may now need to register to file as a ‘Transmitter User’. Maryland will release additional information about ‘Transmitter User’ requirements by mid-November 2024.The transition to MTC also resulted in a robust new set of error rejection codes, making testing especially important this year. Additional information about testing will also be released in mid-November.
The guide has also been updated to clarify that the FEIN / Central Registration Number in certain fields must actually be registered and used to pay the reported withholding with the state of Maryland, or the file will be rejected. Filers should also note that MTC includes many new features to enhance taxpayer the taxpayer experience, like electronic corrections for 1099 forms. Questions about filing 1099 through MTC should be sent to the new email address, efileW21099help@marylandtaxes.gov.
Maryland’s 2024 1099 Specifications can be found here.
