It depends.

Yes, wages on W-2 Forms are subject to withholdings.  Withholdings can also be made for an annuity, sick pay, or retirement distributions.  

Withholding is not required for domestic services in a private home, services by a minister or nonresident individuals in certain cases.

I have attached a link to the Maryland withholding guide for more detailed information. 

Maryland withholding guide

If you have a more specific question in regards to what type of return you are currently preparing and which input section you have this question on, please comment so we can assist you as it pertains to your specific situation.

I have the same question as the original poster and the answer given is not clear.  The TurboTax question that is being asked, is it referring to the withholding tax for our employees, or is it referring to people OTHER THAN employees?  The term "personal services" is making it a bit confusing.  I am not sure how to answer this question and I really don't want to get it wrong.

The Maryland instructions refer to an "employer" when it mentions withholding taxes. You would only be an employer with regard to individuals who perform services for you as employees, so you would not need to withhold taxes for subcontracted individuals.

So, if you issue a W-2 form properly for individuals who perform services for you, then they would be the only ones that you need to withhold taxes for. Individuals "other than employees" refers to people you subcontract work to, and you would not need to withhold taxes for them.