Delaware New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Your business will need to have an Employer Identification Number (also known as an EIN or FEIN), if you do not already have one.
- The simplest way is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
- To read more about applying for EINs, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
- To find out more about EFTPS, please read our article, “What Is EFTPS?”
State of Delaware Tax Accounts:
Delaware new employers can easily apply online using Delaware’s One Stop Business Registration and Licensing System. This portal will allow you to register with the:
- Department of Revenue for state income taxes (SIT)
- Division of Unemployment Insurance for state unemployment insurance (SUI)
- Office of Workers’ Compensation for Workers’ Compensation (WC).
- The Delaware new employer SUTA rate is 1.0% for 2023 for all non-construction industries. New construction employer rates are 1.0% for 2023.
- The Delaware Department of Labor will assign your business an unemployment tax rate every year based on your business and your experience rating.
- To learn more about SUTA please read our article, “What Is SUTA Tax?”
- If your business is within the City of Wilmington, you will need to apply for the Earned Income Taxpayer Account.
Setting Up Your New Employee:
- Federal law requires you and your employee fill out Form I-9 to verify that they are able to work in the United States. For more information please read, “Form I-9 In a Nutshell”.
- You will need to retain each employee’s completed Form I-9 as long as they work for you. For more information, please read “What Should Be in an Employee File?”
- Have your new employee fill out Form W-4, Employee’s Withholding Certificate. This will be used for both federal and Delaware income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”
- Delaware employers are to report new hires online with the Delaware State Directory of New Hire Reporting within 20 days of the date of hire or rehire.
- To learn more, read “What Is New Hire Reporting?”
- You must meet minimum wage requirements for both the federal government and the state of Delaware. Delaware’s minimum wage exceeds the federal minimum wage, so you must comply with the greater wage. The minimum wage is $11.75 per hour in 2023.
- You need to display the Delaware minimum wage poster for your employees where they can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
To stay compliant with federal law, you need to keep employee payroll records for a minimum of three years. To learn more, please read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
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