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. For Delaware employer registration help, check out our partner, CorpNet.
Federal and Delaware State Tax Accounts
Federal Tax Accounts
Apply for an EIN
Your business will need to have an Employer Identification Number (also known as an EIN or FEIN), if you do not already have one.
The simplest way is to apply for an EIN with the IRS online. There is no cost to apply for an EIN.
To read more about applying for EINs, read our help article, “Your Step-by-step Guide on How to Apply for EIN”.
Enroll in EFTPS
Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
To find out more about EFTPS, please read our article, “What Is EFTPS?”
Delaware State Tax Accounts
Register as a New Employer in Delaware
New Employers will register with Delaware One Stop where you can:
Register for a Delaware employer withholding account with the Delaware Dept of Revenue.
Register with the Delaware Department of Labor for unemployment insurance using the portal which will guide you through a digital Form UC-1.
Register with the Office of Workers’ Compensation for Workers’ Compensation (WC).
Next, create an account on my.delaware.gov: This is the state’s secure identity portal. This portal provides Delaware employers with a single point of entry to manage all divisional accounts under one set of login credentials.
During signup, choose “For My Business.”
Complete the required identity proofing steps (ID scan and selfie).
Finally, register for Delaware Paid Leave (PFML).
Access the LaborFirst employer account registration through your my.delaware.gov account. *You must create a “my.delaware” account first (see above) to access the Department of Labor’s newer systems, including LaborFirst.
Get Your SUTA Rate
The Delaware new employer SUTA rate is 1.0% for 2026 for all non-construction and construction industries.
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?”
Register Your Business for Any Local Taxes
If your business is within the City of Wilmington, you will need to apply for the Earned Income Taxpayer Account.
Patriot calculates the city of Wilmington local payroll taxes with automatic tax rate updates. Full Service customers who have completed their tax filing setup will also have these taxes collected, deposited, and filed.
State-mandated Requirements
Sign up for Workers’ Comp Insurance
You must have workers’ comp insurance if you have at least 1 employee in Delaware. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Delaware here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, ERGO NEXT Insurance. You can get a free quote with ERGO NEXT here.
Offer a Qualifying Retirement Plan
Delaware requires that employer with more than 5 employees who have been in business in the state for at least 6 months enroll in Delaware Expanding Access for Retirement and Necessary Savings (Earns), the state-mandated retirement program, or offer a qualifying retirement plan alternative.
Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.
Setting Up Your New Employee
Fill Out Form I-9
Federal law requires you and your employee fill out Form I-9 to verify that they are able to work in the United States. For more information please read, “Form I-9 In a Nutshell”.
You will need to retain each employee’s completed Form I-9 as long as they work for you. For more information, please read “What Should Be in an Employee File?”
Have Employee Fill Out Federal Form W-4
Have your new employee fill out Form W-4, Employee’s Withholding Certificate. This will be used for both federal and Delaware income taxes.
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?”
Report New Hires
Delaware employers are to report new hires online to the Delaware State Directory of New Hire Reporting. within 20 days of the date of hire or rehire.
To learn more, read “What Is New Hire Reporting?”
Meet Minimum Wage Requirements
Delaware’s minimum wage is $15.00 per hour in 2025.
You need to display the minimum wage poster for your employees where they can read it.
Obtain Labor Law Posters
Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!
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!
This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.