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 Washington D.C.
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Washington D.C., you must be registered with the Washington D.C. Office of Tax and Revenue (income tax withholding) and the Washington D.C. Department of Employment Services (unemployment tax).
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 Washington D.C. Accounts and Rate Info
Washington D.C. requires you to register with the DC Office of Tax and Revenue online for your D.C. Withholding Account Number. Receiving your account number and tax deposit schedule after registering online can take up to 10 business days.
For your D.C. Unemployment Insurance Account Number, you will need to register with the D.C. Department of Employment Services (DOES). You will need to submit an online application through the DC DOES Employer Registration portal. You should receive your unemployment account number and tax rate instantly after completing your registration.
Find This Information
Locate your Washington D.C. Withholding Account Number:
- You can locate your withholding tax account number and tax deposit schedule by:
- Checking notices from the DC Office of Tax and Revenue, or
- Contacting the agency at (202) 759-1946.
Locate your D.C. Unemployment Account Number and Tax Rate:
- You can find your D.C. UI Tax Rate by:
- Checking the annual Rate Notice from the DC Department of Employment Services, or
- Contacting the agency at (202) 698-7550.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid D.C. 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 “Washington D.C.” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your Washington D.C. Withholding Account Number and your D.C. Unemployment Insurance Account Number and Tax Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your D.C. 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 D.C. 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 D.C. 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.