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District of Columbia New Employer Information

January 19, 2018

Congratulations on your decision to become a new employer in Washington D.C.! You will need a few things in place before you run your first payroll:

Federal and State Tax Accounts

Federal Tax Accounts:

Apply for an Employer Identification Number view details
  • Obtain an Employer Identification Number, (also known as an EIN or FEIN) for your business if you do not already have one.
  • The EIN is a unique nine digit number assigned by the IRS to identify your business.
  • You can 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, “How to Apply for an EIN”.
Enroll in EFTPS (Electronic Federal Tax Payment System) view details
  • For your convenience, it is recommended that you enroll online for the EFTPS (Electronic Federal Tax Payment System). You will need to have this account to make tax payments yourself online or view any tax deposits made on your behalf by Patriot Software if you are a Full Service Payroll customer.
  • To learn more, read our article, “What Is EFTPS?”
District of Columbia Tax Accounts:

Register with the Office of Tax and Revenue view details

Register with the Department of Employment Services (DOES) view details
  • Register online with the DOES Employer Registration Portal for your state unemployment insurance (SUI) tax account.

Get Your SUTA Rate view details
  • Your new employer SUTA rate for the District of Columbia is 2.7% plus a 0.2% Administrative Assessment Fee for a total rate of 2.9% for 2018 and 2017. For more information, visit the Department of Employment Services.
  • It will be a 4-5 year period before your business is assigned a new contribution rate based on exerience and type of business.

Setting Up Your New Employee:

Fill Out Form I-9 view details
Have Employee Fill Out Federal Form W-4 view details
Have Employee Fill Out State Form D-4 view details
  • Have your new employee fill out Form D-4 District of Columbia Employee Withholding Allowance Certificate for D.C. income tax withholding.
Report New Hire view details
Meet Minimum Wage Requirements view details
  • Starting July 1, 2017, the minimum wage is $12.50 per hour. Starting July 1, 2018, the minimum wage is $13.25 per hour.
  • You need to display the District of Columbia minimum wage poster where your employees can read it.

Once you have all the necessary information, you will be able to set up your payroll for your business.

Federal law requires you to keep employee payroll records for a minimum of three years. To learn more, 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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