I have been asking my employer why my state of residence taxes haven't been filed. Upon taking the job, I filled out all of the paperwork and even asked about Md taxes. They told me they would take care of it. I have just found out that they have not been paying Md. taxes nor are the taxes taken out of my check. Instead I have been paying VA taxes, even though I have never lived there. They said I would need to file for a VA non resident and owe MD taxes. Is this my responsibility or is it on them to file the taxes correctly?
When you live in one state and work in another state, you need to prepare the return for non-resident state first, then prepare the return for the state you live in. The state you live in will give you credit for the taxes paid to the state you worked in.
If you're an MD resident who works in VA, file VA Form VA-4 with your employer ASAP to claim exemption from VA withholding. Here's a link to that form:
MD residents are not subject to VA income tax on W-2 salaries or wages.
Unfortunately, the responsibility for correcting your employer's errors rests with you.
Your income is 100% taxable by your resident state of MD.