USOPTE- Maryland taxes reduced after going to the new tax engine

Summary:

After going live with USOPTE (US Oracle Payroll Tax Engine), we are seeing a reduction in Maryland (MD) State Income Tax (SIT) withheld for several employees. The payroll report flags these employees with the message "Missing the State level tax form - defaults to 1 vs 0", indicating the system is now defaulting to 1 allowance instead of 0 when no state tax withholding form (MD MW507) is present on the employee's Tax Withholding card.

Content (please ensure you mask any confidential information):

We recently went live with USOPTE and are comparing payroll results before and after. We have identified multiple Maryland (MD) resident employees whose SIT Withheld has decreased. All affected employees work at a Pennsylvania (PA) work location but are Maryland residents, so MD SIT applies to them.