Ch. 2                                   LAWS OF MARYLAND

(A)  REQUIRED.

EXCEPT AS PROVIDED IN § 10-907 OF THIS SUBTITLE, EACH
EMPLOYER OR PAYOR SHALL:

(1)  WITHHOLD THE INCOME TAX REQUIRED TO BE WITHHELD
UNDER § 10-908 OF THIS SUBTITLE; AND

(2)  PAY TO THE COMPTROLLER THE INCOME TAX WITHHELD
FOR A PERIOD WITH THE WITHHOLDING RETURN THAT COVERS THE PERIOD.

(B)  TAX WITHHELD DEEMED HELD IN TRUST.

ANY INCOME TAX WITHHELD IS DEEMED TO BE HELD IN TRUST FOR
THE STATE BY THE PERSON WHO WITHHOLDS THE TAX.

(C)  SEPARATE ACCOUNT REQUIRED.

A PERSON WHO WITHHOLDS INCOME TAX SHALL KEEP A SEPARATE
LEDGER ACCOUNT FOR WITHHOLDINGS THAT INDICATES CLEARLY:

(1)  THE AMOUNT OF INCOME TAX WITHHELD; AND

(2)  THAT THE INCOME TAX WITHHELD IS THE PROPERTY OF
THE STATE.

(D)  LIABILITY FOR WITHHOLDINGS.

IF AN EMPLOYER OR S CORPORATION NEGLIGENTLY FAILS TO
WITHHOLD OR TO PAY INCOME TAX IN ACCORDANCE WITH SUBSECTION (A)
OF THIS SECTION, PERSONAL LIABILITY FOR THAT INCOME TAX EXTENDS:

(1)  TO THE EMPLOYER OR S CORPORATION; AND

(2)  IF THE EMPLOYER IS A CORPORATION, TO:

(I)  ANY OFFICER OF THE CORPORATION WHO
EXERCISES DIRECT CONTROL OVER ITS FISCAL MANAGEMENT; OR

(II)  ANY AGENT OF THE CORPORATION WHO IS
REQUIRED TO WITHHOLD AND PAY THE INCOME TAX.

REVISOR'S NOTE: Subsection (a) of this section is new
language derived without substantive change from
former Art. 81, § 312(a), (a-2)(l), the second clause
of (a-l)(l), the second clause of (h)(1), the first
sentence of (m), and, as they related to payment,
(a-2)(3) and (h)(2) and the second sentence of §
283(a-l).

Subsections (b) through (d) of this section are new
language derived without substantive change from
former Art. 81, § 312(h)(4).

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