This has to do with the question of domicile. Your domicile is your permanent home. The general rule when you move to a new state is that, for state tax purposes, you maintain your old domicile until you establish a new domicile in the new state. A temporary residence, such as a hotel, does not constitute a change in domicile. So paychex is correct that you were still an MD resident for tax purposes during your time living in the hotel.
**Answers are correct to the best of my ability but do not constitute tax or legal advice.
