§ 10-905. Definitions

   (a) In general. -- In this Part II of this subtitle the following words have the meanings indicated.

(a-1) Annuity, sick pay, or retirement distribution. -- "Annuity, sick pay, or retirement distribution" means:

   (1) an annuity or sick pay payment described in § 3402(o) of the Internal Revenue Code; or

   (2) a designated distribution as defined in § 3405(e) of the Internal Revenue Code other than an eligible rollover distribution within the meaning of § 3405(c) of the Internal Revenue Code.

(b) Employer. --

   (1) "Employer" has the meaning stated in § 3401 of the Internal Revenue Code.

   (2) "Employer" includes:

      (i) the federal government;

      (ii) the State;

      (iii) a county, municipal corporation, political subdivision, or instrumentality of the State;

      (iv) another state to the extent that functions of its government are carried on or performed in this State; and

      (v) if the employer is a corporation:

         1. any officer of the corporation who exercises direct control over its fiscal management; and

         2. any agent of the corporation who has a duty to withhold income tax from wages.

(c) Payment subject to withholding. -- "Payment subject to withholding" means:

   (1) an annuity, sick pay, or retirement distribution;

   (2) income that is subject to the income tax and is distributed by a fiduciary to a nonresident alien;

   (3) a payment of winnings derived from wagering in the State if the payment is subject to withholding under § 3402 of the Internal Revenue Code; and

   (4) a payment of a death benefit by the Board of Trustees of the State Retirement and Pension System.

(d) Payor. --

   (1) "Payor" means a person responsible to make a payment subject to withholding.

   (2) "Payor" includes:

      (i) the federal government;

      (ii) the State;

      (iii) a county, municipal corporation, political subdivision, or instrumentality of the State;

      (iv) another state to the extent that functions of its government are carried on or performed in this State; and

      (v) if the payor is a corporation:

         1. any officer of the corporation who exercises direct control over its fiscal management; and

         2. any agent of the corporation who has a duty to withhold income tax from payments subject to withholding.

(e) Wagering. -- "Wagering" includes:

   (1) any lottery, including the State lottery; and

   (2) any pari-mutuel wagering, including any pari-mutuel wagering conducted under Title 11 of the Business Regulation Article.

(f) Wages. --

   (1) Except as provided in paragraph (2) of this subsection, "wages" means salary, wages, or compensation for personal services of any kind as defined in § 3401 and 3402(o)(2)(A) of the Internal Revenue Code.

   (2) "Wages" includes remuneration paid for services described in § 3401(a)(5) and (6) of the Internal Revenue Code.

(g) Withhold. -- "Withhold" includes deducting income tax.

HISTORY: An. Code 1957, art. 81, § 279, 312; 1988, ch. 2, § 1; ch. 110, § 1; 1989, ch. 590, § 3; 1991, ch. 86; ch. 487, § 3; 1993, ch. 243; 1994, chs. 137, 468; 2003, ch. 203, § 24; 2004, ch. 25, § 6; 2007, ch. 433; 2011, ch. 352.