Delaware New Employer Information
Congratulations on your decision to become a new employer in Delaware! You will need a few things in place before you run your first payroll:
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we recommend 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 find out more about EFTPS, please read our article, “What Is EFTPS?”
State of Delaware Tax Accounts:
Delaware new employers can easily apply online using Delaware’s One Stop Business Registration and Licensing System. This portal will allow you to register with the:
- Department of Revenue for state income taxes (SIT)
- Division of Unemployment Insurance for state unemployment insurance (SUI)
- Office of Workers’ Compensation for Workers’ Compensation (WC).
- The Delaware new employer SUTA rate is 1.8% for 2021 for all non-construction industries. New construction employer rates are 2.3% for 2021.
- The Delaware Department of Labor will assign your business an unemployment tax rate every year based on your business and your experience rating.
- To learn more about SUTA please read our article, “What Is SUTA Tax?”
Setting Up Your New Employee:
- You must meet minimum wage requirements for both the federal government and the state of Delaware. Delaware’s minimum wage exceeds the federal minimum wage, so you must comply with the greater wage. The minimum wage is $10.50 per hour in 2022.
- You need to display the Delaware minimum wage poster for your employees where they can read it.
Once you have all the necessary information, you will be able to set up your payroll for your business.
To stay compliant with federal law, you need to keep employee payroll records for a minimum of three years. To learn more, please 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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