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District of Columbia New Employer Information

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 EIN View Details

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”.

Enroll in EFTPS View Details

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 learn more, read our article, “What Is EFTPS?”

District of Columbia Tax Accounts:

Register With the Office of Tax and Revenue View Details

District of Columbia new employers need to complete Form FR-500 online to register your business with the Office of Tax and Revenue.
You can then register for the Electronic Taxpayer Service Center, which supports electronic payments for your employer withholding.

Register with the Department of Employment Services (DOES) View Details

Register online with the DOES Employer Registration Portal for your unemployment insurance (UI) and paid family leave (PFL) tax account.

Get Your SUTA Rate View Details

New employers are assigned a standard tax rate equal to the average rate of contributions paid by all employers during the preceding year, or 2.7%, whichever is higher. The rate includes a 0.2% administrative assessment fee. 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 experience and type of business.
To learn more about SUTA tax, please read our article, “What Is SUTA Tax?”

Setting Up Your New Employee:

Fill Out Form I-9 View Details

Federal law requires you and your employee fill out Form I-9 for work verfication in the USA. For more information, read, “Form I-9 In a Nutshell”.
Note: You must keep each employee’s completed Form I-9 as long as the individual works for you. For more information, read, “What Should Be in an Employee File?”

Have Employee Fill Out Federal Form W-4 View Details

Have your new employee fill out Form W-4, Employee’s Withholding Certificate for federal income taxes.
For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know”

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 Hires View Details

Report all new hires online within 20 days from the date of hire or rehire.
For more information, visit the District of Columbia Directory of New Hires.

Meet Minimum Wage Requirements View Details

The Washington D.C. minimum wage is $16.50 for 2023 until July 1, 2023 when it increases to $17.00.
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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