District of Columbia New Employer Information

• 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 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 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?”

• 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.

• 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.

• The Washington D.C. minimum wage is $15.20 per hour starting July 1, 2021, regardless of employer size.
• You need to display the District of Columbia minimum wage poster where your employees can read it.