Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
Paying employees in Delaware
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Delaware, you must be registered with the Delaware Division of Revenue (income tax withholding), Delaware Department of Labor (unemployment tax), and, if applicable, the City of Wilmington (local taxes).
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your Delaware Accounts and Rate Info
Delaware requires you to register online with the Delaware Division of Revenue! After registering online, you'll receive your Withholding account number, UC Employer account number, and Unemployment tax rate. Please note, construction companies must follow these steps instead.
If your business is operating in Wilmington, or with employees who live or work there, you must obtain a Wilmington Account Number to file the City's Earned Income Tax and Head Tax. You will need to register by completing this form and mailing it to the provided address.
Find This Information
Locate your Delaware Withholding Account Number:
- Reviewing notices from the Delaware Division of Revenue, such as the Withholding Tax Return (Form W1)
- Calling the agency at (302) 577-8779
Locate your Delaware Unemployment Insurance Number:
- Reviewing notices from the Department of Labor, such as the Quarterly Tax Report or Notice of Assessment Rate
- Calling the agency at (302) 761-8482
Locate your Delaware Unemployment Tax Rate (Earned Rate):
- Reviewing Form UC-12 received from the Delaware DOL
- Calling the agency at (302) 761-8484
Locate your Delaware Unemployment Tax Rate (Earned Rate):
- You will receive your account number within 5-10 business days if you register by mail, or on the same day if you register in person
- If you already have a Wilmington Account Number, you can call the agency at (302) 576-2415 to confirm the account number
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid DE address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Delaware” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your Delaware Withholding Account Number, Delaware Unemployment Insurance Number, Delaware Unemployment Tax Rate, and, if applicable, the City of Wilmington account number.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your DE tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your DE state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your DE state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.