District of Columbia New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- 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, “Your Step-by-step Guide on How to Apply for EIN”.
- 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 online with the DOES Employer Registration Portal for your state unemployment insurance (SUI) tax account.
- 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:
- 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 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 your new employee fill out Form D-4 District of Columbia Employee Withholding Allowance Certificate for D.C. income tax withholding.
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!