Maryland FAMLI penalties and interest: 30 days to cure, 1.5 percent per month, and an assessment of up to two times the contributions
Published Sep 19, 2026
Page updated Oct 10, 2026
Short answer, as of October 8, 2026: Maryland has written penalties for FAMLI. If you do not pay contributions, COMAR 09.42.02.09A gives you 30 days to cure, and you "may be required to pay interest, in the amount of 1.5 percent per month or part of a month". If you do not cure, § 8.3-903 applies: an assessment of the contributions and interest, an additional assessment, and an audit. The statute words the additional assessment as "not to exceed two times the contributions withheld". The regulation words it as "not to exceed two times the contributions delinquent to the Division". A separate civil penalty of up to $1,000 for each employee is in § 8.3-905.
The two wordings, side by side
| Text | Where | The words |
|---|---|---|
| Statute | Md. Code, Labor and Employment § 8.3-903(2) | "make an additional assessment in an amount not to exceed two times the contributions withheld, as a penalty for failure to pay the contributions due" |
| Regulation | COMAR 09.42.02.09B(2) | "Make an additional assessment in an amount not to exceed two times the contributions delinquent to the Division, as a penalty for failure to pay the contributions due" |
The two texts do not use the same word. We print each one with its own citation. We do not replace them with a third word. If the difference matters for your case, ask an attorney.
What happens after a missed payment
- The due date passes. The first due date is Apr 30, 2027.
- The Division gives you 30 days to cure the deficiency (COMAR 09.42.02.09A).
- Interest can run at 1.5 percent per month or part of a month.
- If you do not cure, the Division can assess the contributions and the interest (§ 8.3-903).
- The Division can add the additional assessment in the table above.
- The Division can audit you "for the immediately following fiscal year" (§ 8.3-903(3)).
The State's reports page says it in one line: "Contributions must be paid on or before the quarterly due date to avoid penalties and interest."
Late or missing quarterly reports
COMAR 09.42.02.09C covers reports. The Division may estimate your wages. It may assess contributions on the estimate. It may subpoena your records and order an audit.
The next-business-day rule covers the payment only (COMAR 09.42.02.08E). In 2027 the payment for Jul 31 is timely on Aug 2, 2027, and the payment for Oct 31 is timely on Nov 1, 2027. The rule does not excuse a late report. The dates are in the first quarterly report guide and on the to-do list.
The civil penalty of up to $1,000 for each employee
Section 8.3-905(b)(2)(ii)4 allows a civil penalty "of up to $1,000 for each employee for whom the employer is not in compliance". The penalty is discretionary. It follows a complaint, a 90-day investigation and mediation. It is issued by order. If an employee then sues to enforce an order, § 8.3-905(c)(3) lets the court award three times the lost wages, punitive damages and counsel fees.
Registration: no date in COMAR 09.42.02.02, and one 20-day rule
| Employer | Rule | Source |
|---|---|---|
| Existing employer | COMAR 09.42.02.02 sets no registration date for existing employers (read Oct 8, 2026). The Governor's release of Sep 1, 2026 says employers are "strongly encouraged to register as soon as possible". | Release; COMAR 09.42.02.02 |
| New employer that starts after contributions begin | Register "within 20 days of their first payment of wages" | COMAR 09.42.02.03 |
Registration opened to all employers on September 1, 2026. Start with Do I have to register for Maryland FAMLI?.
Costs that are not called penalties
- Missed deduction. If you do not deduct the employee share, COMAR 09.42.02.07 says you are "considered to have elected to pay the employee's portion". You "may not recoup" it later. The one exception covers the next 6 pay cycles when other mandatory withholdings left too little pay.
- Lost small-employer treatment. If your quarterly report leaves the "Total employee headcount" field blank (every employee, in Maryland and elsewhere), the State's file guide says the EIN is not eligible for small-employer status, and under COMAR 09.42.02.08 you "will be deemed to not be a small employer". You then owe the employer half too. See the under-15 guide.
- Private plan that ends. If a private plan is terminated in 2028, by the employer or by the State, the employer owes contributions back to January 1, 2027, plus interest. In 2029 it owes half, plus interest. The plan page adds: "There may be additional financial penalties." An employer that filed a Declaration of Intent and does not apply by Oct 1, 2027 "may face penalties and fees". See the Declaration of Intent guide.
Employment attorneys are listed at /find/employment-attorneys. The order of that list does not depend on payment.
This is a private website, not a government site. General information, not legal, tax or insurance advice. Official site: paidleave.maryland.gov.
Sources
- COMAR 09.42.02.09 — failure to pay contributions or file reports — checked Oct 8, 2026
- Md. Code, Labor and Employment § 8.3-903 — checked Oct 8, 2026
- COMAR 09.42.02.03 — registration of new employers — checked Oct 8, 2026
- Maryland FAMLI Division — Submit quarterly reports — checked Oct 8, 2026
- Maryland FAMLI Division — Understand your plan (private plan termination) — checked Oct 8, 2026
- COMAR 09.42.03.10 — Declaration of Intent — checked Oct 8, 2026
Frequently asked questions
›What is the penalty for a late Maryland FAMLI payment?
COMAR 09.42.02.09 gives the employer 30 days to cure, and the employer may be required to pay interest of 1.5 percent per month or part of a month. If the employer does not cure, the penalties in § 8.3-903 apply.
›How large can the FAMLI penalty be?
The statute, § 8.3-903(2), allows an additional assessment 'not to exceed two times the contributions withheld'. The regulation, COMAR 09.42.02.09B(2), says 'not to exceed two times the contributions delinquent to the Division'. The State can also audit the employer for the next fiscal year.
›Is there a penalty if I do not register for Maryland FAMLI?
No penalty that names a failure to register was found in the statute or the regulations on September 18, 2026. COMAR 09.42.02.02 (read October 8, 2026) sets no registration date for existing employers. But penalties for missed payments and reports exist, so this site never says that there is no penalty.
›What happens if I do not file the quarterly report?
COMAR 09.42.02.09C lets the Division estimate your wages and assess contributions on that estimate. It can also subpoena records and order an audit.
Private website. Not affiliated with the State of Maryland, the Maryland Department of Labor or the FAMLI Division. Official site: paidleave.maryland.gov. General information with sources and check dates — not legal, tax or insurance advice. We are not a licensed insurance producer; we do not recommend any agent, insurer or plan, and we receive no commission or fee based on any insurance sale.