Supporters say Maryland should stop treating payroll processors as money transmitters SB 261 would amend Maryland’s Money Transmission Act to exclude payroll processors from being classified as money transmitters, sponsors said, arguing compliance costs and multi‑state bonding make the current categorization impractical for small payroll firms and that most states do not treat payroll processors as money transmitters.

Maryland is poised to change the game for small payroll firms by potentially exempting them from costly money transmitter regulations—could this be the relief they’ve been waiting for?

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Committee considers HB 118 to exclude payroll processors from automatic money‑transmitter status HB 118 would take payroll processors out of the presumption that they are money transmitters under Maryland law; OFR clarified companies that perform money transmission would still need to be licensed.

Maryland's House Bill 118 is poised to redefine the role of payroll processors, setting them apart from money transmitters and potentially easing the financial burden on employers.

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