Delaware employer tax information
About Delaware employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Delaware, you must be registered with the Delaware Division of Revenue and the Delaware Department of Labor so we can pay and file your state taxes.
For the Delaware Division of Revenue, you need your Delaware Withholding Tax Account Number (13 digits).
For the Delaware Department of Labor you need your Delaware UI Account Number (6 digits) and your Delaware unemployment insurance tax rate.
Delaware payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
Withholding Tax Payment: filed after every pay run
Wage and Tax Statement (W-2): filed annually
Employer's Contribution and Wage Report: filed quarterly
Delaware State Directory of New Hire Reporting
New Hire Report: filed as needed
Make Delaware state payroll tax payments
To make Delaware withholding tax payments, you must be registered through the One Stop Business Licensing and Registration System or fax/mail a completed Form CRA to the State of Delaware to obtain a withholding account number. There are two options for paying withholding taxes.
To pay online, you can pay by ACH debit through the One Stop Business Licensing and Registration System.
To pay by mail, mail a check along with a completed copy of your withholding tax form downloaded from the Delaware Division of Revenue.
For questions about withholding tax payments, visit the Delaware Division of Revenue or call 302-577-8779.
To make Delaware Unemployment Insurance tax payments, you must be registered with the Department of Labor Division of Unemployment Insurance. To register for an account with the DOL, you can request Form UC-1 by calling the Unemployment Insurance Employer Contributions Unit at (302) 761-8484 or download the Form UC-1 from the Delaware Division of Unemployment Insurance. There are two options for paying unemployment insurance taxes:
To pay online, you can pay by ACH through the Department of Labor - Online Employer Services portal at the end of your filing.
To pay by mail, mail a check along with completed copies of Form UC-8 and UC-8A to the address indicated on the form.
For more information on state unemployment taxes, contact the Delaware Department of Labor Division of Unemployment Insurance at 302-761-8484 or email them at [email protected].
Make Delaware payroll withholding tax filings
Look for filing deadlines for Eighth-Monthly, Monthly, and Quarterly Withholding filers under Withholding Tax - Withholding Due Dates. Returns should be received by the due date of each return indicated on the table.
To file by mail:
- Download the form from the Division of Revenue - Delaware Website for the respective month you are filing for.
- Enter your email address, telephone number, and date.
- Sign the return and send with payment in full (if applicable) to:
State of Delaware, Division of Revenue
PO Box 830
Wilmington, DE 19899-083
Any employer who was required under the Internal Revenue Code to deposit Federal employment taxes by Electronic Funds Transfer this past year, must file electronically for Delaware this upcoming year as well. If you meet this requirement, you must continue filing electronically or face up to a $500 penalty.
If you meet this requirement, complete the enclosed Electronic Funds Transfer Authorization Agreement and mail it to:
PO Box 8911
Wilmington,DE 19899-8911.
You may contact the EFT Department at 302-577-8231 for further information and to obtain an Electronic Funds Transfer Authorization Agreement. Learn more about EFT enrollment. The EFT program is also available on a voluntary basis.
If you have questions, call the Division of Revenue - Delaware at 302-577-8779.
Delaware W-2s are due by January 31 for the preceding calendar year. If you are an employer who is required by the federal government to electronically file Form W-2, Wage and Tax Statements, during the year, you must electronically transmit these informational returns for your Delaware employees and withholding. All other employers may electronically transmit these informational returns; however, you are not required to do so.
To file online, use the State of Delaware website.
To file by mail, mail your paper forms (W-2, 1099, and reconciliation) to:
State of Delaware
Division of Revenue
P.O. Box 830
Wilmington, DE 19899
If you have questions regarding the W-2 filings requirements, contact the State of Delaware at 302-577-8200.
Delaware payroll tax account numbers
If you are a new business, register online with the DE Division of Revenue.
If you already have a DE Withholding Tax Account Number, you can find it on previous correspondence from the DE Division of Revenue. The last three digits of the account number correspond to your location number. You can find this on previous correspondence from the DE Division of Revenue.
If you are unsure, you can contact the DE Division of Revenue at 302-577-8779 or from the State of Delaware live chat.
If you are a new business, register online with the DE Department of Labor to retrieve your number and tax rate.
If you already have a UI Account Number and Tax Rate, you can find this on the Notice of Unemployment Insurance Assessment Rate mailed by the DE Department of Labor. If you’re unsure, you can contact the agency at 302-761-8001 or by visiting the Delaware Department of Labor website.
Make unemployment insurance tax filings in Delaware
Unemployment insurance tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file online, use the Department of Labor - Online Employer Services portal.
To file by mail, Obtain UC-8 and UC-8A from the Employer’s Tax Package or call the Division of Unemployment Insurance at 302-761-8482 to obtain the necessary forms. Mail completed form along with any payments due to the address indicated on the form.
Once your business registers with the Delaware Department of Labor Division of Unemployment Insurance and is found liable for unemployment insurance taxes, you must continue to file quarterly returns even if you have no employees or no taxes are due. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact the Delaware Department of Labor Division of Unemployment Insurance at 302-761-8484 or email them at [email protected].
City of Wilmington tax information
If your business is located in Wilmington, or if you employ anyone who lives in Wilmington, you must also be registered with the City of Wilmington so we can pay and file your city taxes.
Your Wilmington Account Number is an eight-digit number that serves as a unique account number for businesses located in Wilmington and is used to file the city’s Earned Income Tax and Head Tax.
If you are a new business, you can fill out the Application for New Business Earned Income Taxpayer Account form and mail it to the address on the form or register in person. You should receive your number within 5-10 business days when registering by mail or on the same day when registering in person.
If you already have a Wilmington City Account Number, you can find this on previous correspondence from the City of Wilmington Earned Income Tax. If your number is fewer than eight digits, add zeros to the beginning of the number.
If you are unsure, contact the City of Wilmington at 302-576-2418 or email them at [email protected].
Square Payroll processes the following per the frequency for the listed local agency.
Wilmington Earned Income Tax Department
- Wilmington Quarterly Return of Tax Withheld: filed monthly
- Wage and Tax Statement (W-2): filed annually
Delaware Paid Family and Medical Leave Program
The Delaware Department of Labor is implementing a new program starting 2025 that allows eligible workers to take up to 12 weeks of paid time off for medical leave, family caregiver leave, qualified exigency leave, and/or parental leave. Contributions begin on January 1, 2025 and the program will start accepting claim applications on January 1, 2026.
Wages subject to PFML are the same as FICA wages, which includes regular salary, tips, commissions, bonuses, severance pay, and taxable fringe benefits. Contractor wages are not subject to the tax. The tax has a taxable wage limit that matches the Social Security wage limit.
Employers are responsible for all contributions made to the program but employers may pass up to 50% of the cost to their employees through payroll deductions.
Learn more about the Delaware Paid Family and Medical Leave program.
In order for Square Payroll to accurately file and pay your Paid Family and Medical Leave taxes, you must provide the following information:
Step 1. Confirm employee count and PFML coverage
Log in to your Square Dashboard, go to Payroll > Tax Info, then select one of the three options to either provide no coverage, parental leave only, or full PFML coverage. This selection must match what is registered in your Delaware LaborFirst account.
Step 2. Decide on cost sharing with employees
Determine whether you want to pass 50% of the contributions to employees or cover 100% of the cost.
Step 3. Collect your PFML Account Number
- Register for a Delaware LaborFirst account. In the portal, you will need to register for Paid Family and Medical Leave to obtain your PFML account number.
- Input your 7 or 8 digit PFML number in the Tax Info section of Square Payroll.
Step 4. Verify employee participation
If an employee has agreed to be waived from the PFML program, you may indicate they are exempt by going to the team member’s profile and checking the box for Delaware Paid Family and Medical Leave Exemption.
Step 5. Prepare for Square Payroll to submit your quarterly filings and payments
PFML contributions must be reported and paid quarterly. Verify that employee and employer contributions are correctly recorded in your payroll account.
Step 6. Communicate with employees
Inform your employees about their contributions and how they may use PFML benefits.