This article covers the steps new employers in Washington D.C. need to complete before running their first payroll — including federal and D.C. tax account registration, mandated insurance requirements, and new employee setup.
For Washington D.C. employer registration help, check out our partner, CorpNet.
Federal Tax Accounts
Apply for an EIN
Apply for an Employer Identification Number (EIN, also called an FEIN) if you don't already have one. The simplest way is to apply for an EIN with the IRS online. There is no cost to apply.
For more details on the application process, read our help article, "Your Step-by-step Guide on How to Apply for EIN."
Enroll in EFTPS
Although not required, we recommend enrolling in the Electronic Federal Tax Payment System (EFTPS). EFTPS is an online portal where you can make federal tax payments and view any tax filings Patriot Software has made on your behalf.
To learn more, read our article, "What Is EFTPS?"
District of Columbia Tax Accounts
Register with the Office of Tax and Revenue
D.C. new employers must complete Form FR-500 online to register your business with the D.C. Office of Tax and Revenue.
Register with the Department of Employment Services (DOES)
Register online with the DOES Employer Registration Portal. This account is required for your unemployment insurance (UI) tax account and your D.C. Paid Family Leave (DCPFL) tax account (see below).
Get Your SUTA Rate
New D.C. employers are assigned a standard State Unemployment Tax Act (SUTA) rate equal to the average contribution rate paid by all employers during the preceding year, or 2.7%, whichever is higher.
After 4–5 years, your business will be assigned a new contribution rate based on your experience and type of business.
To learn more about SUTA, read our article, "What Is SUTA Tax?"
Pay D.C. Paid Family Leave (DCPFL) Contributions
D.C. requires all private-sector employers with at least one employee working in the District to pay DCPFL contributions. The DCPFL program provides eligible employees with paid leave for qualifying family, medical, and parental reasons.
DCPFL is 100% employer-funded — you do not withhold any amount from employee wages. The employer contribution rate is 0.75% of each covered employee's gross wages.
Contributions are due quarterly through the DOES Employer Self-Service Portal by the last day of the month following each quarter end.
For more information, visit the D.C. DOES Paid Family Leave page.
Mandated Insurance
Sign Up for Workers' Compensation Insurance
D.C. employers with at least one employee are required to carry workers' compensation insurance. Coverage can be purchased through a private insurance provider or a state-operated fund.
Patriot's payroll software offers a free pay-as-you-go (PAYG) workers' comp integration with our partner, ERGO NEXT Insurance. Get a free quote with ERGO NEXT here.
For more information on D.C. workers' comp requirements, visit the DOES Workers' Compensation page.
Setting Up Your New Employees
Fill Out Form I-9
Federal law requires both you and your employee to complete Form I-9 to verify authorization to work in the United States. Form I-9 has two parts: the employee completes the first section, and the employer completes the second section.
Retain each employee's completed Form I-9 for as long as the employee works for you. For more information, read "What Should Be in an Employee File?"
Have Employees Fill Out Federal Form W-4
Each new employee must complete Form W-4, Employee's Withholding Certificate, so you can withhold the correct amount of federal income tax (FIT) from their pay.
For more information, read our help article, "What Is a W-4 Form, and What Is it Used for?"
Have Employees Fill Out D.C. Form D-4
Each new D.C. employee must also complete Form D-4, the District of Columbia Employee Withholding Allowance Certificate, so you can withhold the correct amount of D.C. income tax from their pay.
Report New Hires
D.C. employers must report all new hires and rehires online within 20 days of the hire date through the District of Columbia Directory of New Hires.
For more information, visit the D.C. New Hire Reporting website.
Meet Minimum Wage Requirements
The D.C. minimum wage is $17.95 per hour through June 30, 2026, and will increase to $18.40 per hour effective July 1, 2026.
The base wage for tipped employees is $10.00 per hour. If an employee's tips combined with the base wage do not equal the full minimum wage, the employer must make up the difference.
You are required to display the D.C. Minimum Wage Poster where your employees can read it. For more information, visit the D.C. Office of Wage-Hour Compliance.
Obtain Labor Law Posters
Get annual posters and all federal, state, county, and city labor law updates through Patriot's labor law poster store, powered by PosterElite.
Once you have all the necessary information, you can set up payroll for your business. Federal law requires you to keep employee payroll records for a minimum of three years.
For more information, read our help article, "What Employers Should Know About Employee Payroll Records."
This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.