Delaware Payroll Tax and Registration Guide

Employers in The First State, here’s what you need to know about payroll taxes and business registration in Delaware.

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Employers in The First State, here’s what you need to know about payroll taxes and business registration in Delaware. Business registration and payroll taxes can be complicated. In order to get the best advice you can, enlist the help of a lawyer or a Certified Public Accountant in the State of Delaware to guide you through the process.

Whether you’re a brand-new small business or branching out into Delaware for the first time, here’s how to stay compliant with payroll tax and business registration laws in the state.

Delaware tax account registration information

Before you can operate in Delaware, the first thing you need to do is register your business. This is the first step to being able to pay the necessary unemployment taxes in Delaware.

Delaware is a popular state for business registrations in the United States. The Delaware Division of Corporations offers a step by step process for registering a business entity in Delaware.

Once you’re a registered business in the state, you’ll register with the Delaware Taxpayer Portal in order to pay taxes online. Once you sign up, you’ll get an email with sign in instructions to complete the process. You’ll need your FEIN or SSN number in order to complete the registration process.

Required payroll documentation for Delaware

Delaware’s Division of Revenue outlines what employers need to do to meet withholding requirements in the state.

Withholding information

Employers required to deduct and withhold taxes on a monthly basis have to do so on or before the 15th of the following calendar month. This is done through Form W-1 and is paid to the Division of Revenue or a designated depository.

Employers who are required to deduct and withhold taxes on a quarterly basis have to do so on or before the last day of the month of each calendar quarter. This is done with Form W-1Q and is also paid to the Division of Revenue or a designated depository.

Employers who are required to deduct and withhold taxes on an eighth monthly basis within three days (excluding state holidays and weekends) of the end of the tax period. This is done with Form W-1A and is also paid to the Division of Revenue or a designated depository.

Power of Attorney rules for Delaware Payroll Tax and Registration

Delaware has power of attorney laws that allow payroll providers to deposit state taxes and file returns. To declare power of attorney for this purpose, use Form 2848 and follow these guidelines.

Local income taxes imposed for Delaware

Delaware imposes personal income taxes. The state uses a graduated tax rate that ranges from 2.2% to 5.55% for income under $60,000 and 6.6% for income that’s over $60,000.

Delaware resources for Payroll Tax and Registration Laws

The Delaware Division of Revenue and the state’s Division of Corporations are the resources you’ll need for payroll tax and business registration regulations in the State of Delaware. These entities are responsible for listing specific tax rate and wage regulation details. If you have questions about payroll taxes or business registrations in Delaware, connect with these departments to get the guidance you need.

This website provides general information related to TriNet Zenefits services and related laws and best practices. This content and TriNet Zenefits employees do not provide legal advice. While we strive to provide useful general information applicable to the majority of our readers, we do not — and cannot — provide legal advice specific to your company and your situation. Already a TriNet Zenefits customer? Enjoy on-demand HR Advisory Services for all your HR and compliance questions. If not, learn more here.

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