Maryland Code, Labor and Employment § 8.3-704

(1) the Internal Revenue Service has determined that the benefits are subject to federal income tax;

(2) there are requirements regarding estimated tax payments;

(3) the covered individual may elect to have federal income tax deducted and withheld from the benefits that the covered individual receives under this title at the rate specified in the Internal Revenue Code; and

(4) the covered individual is allowed to change a previously elected withholding status.

(b)(1) If a covered individual elects to have federal income tax deducted and withheld under subsection (a)(3) of this section, the Department shall deduct and withhold an amount at the rate specified in the Internal Revenue Code in a manner required by the Internal Revenue Service.

(2) If the Department deducts and withholds federal income tax under paragraph (1) of this subsection, the amount deducted and withheld shall remain in the Fund until it is transferred to the Internal Revenue Service as a payment of income tax.