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. You can also apply by phone at 1-800-829-4933. 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”.
- 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.
- 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 2016 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:
- Federal law requires you and your employee fill out Form I-9 for work verfication in the USA. For more information, read, “What Is Form I-9?”
- 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 Kept in an Employee File?”
- Have your new employee fill out Form W-4, Employee’s Withholding Allowance Certificate for federal income taxes.
- For more information, read our help article, “What Is Federal Income Tax?”
- If your employees need assistance in determining their W-4 allowances, refer them to our help article, “Personal Allowances Worksheet |How-to Determine Form W-4 Allowances”.
- Have your new employee fill out Form D-4 District of Columbia Employee Withholding Allowance Certificate for D.C. income tax withholding.
- Currently, the minimum wage in the District of Columbia is $11.50 per hour for all workers, regardless of the size of the employer. Beginning July 1, 2017, the minimum wage will increase in proportion to the Consumer Price Index for All Urban Consumers in the Washington Metropolitan Statistical Area. Starting July 1, 2017, the minimum wage is $12.50 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 Should I Include in My Employee Payroll Records?”
Let us know if you have any questions. We are here to help!