How to Do Payroll in Delaware

Last reviewed: July 2026

Delaware keeps its employer registration process fairly lean compared to neighboring states, but the order still matters. You need a state tax account before withholding a dollar, and an SUI account before that first quarterly report comes due. Here's the sequence that keeps a new Delaware employer out of trouble.

Step 1: Get a Federal EIN

Start with your Employer Identification Number, free from the IRS at irs.gov/ein. Online applicants typically get the number the same session. You'll reuse it on every Delaware registration that follows.

Step 2: Register With the Division of Revenue

Delaware has a graduated state income tax, so register for a withholding account with the Division of Revenue before running your first payroll. The account number issued here goes on every withholding deposit and return afterward.

Step 3: Register for SUI

Unemployment insurance is handled by the Delaware Department of Labor's Division of Unemployment Insurance, separate from the Division of Revenue. Registration assigns you an account number and a rate.

• New employer rate: 1.0% for 2026, per the state's current Merit Rate Table.
• Taxable wage base: $14,500 per employee for 2026.
• Filing frequency: quarterly, even in quarters with no wages paid.

From the Payroll Desk

Delaware's merit rate table changes from year to year, so confirm your assigned rate directly with the Division of Unemployment Insurance rather than reusing a figure from an old rate notice.

Step 4: Set Up Withholding

Delaware asks new hires to complete Form W-4DE, the state's own Employee's Withholding Allowance Certificate. Delaware kept an allowance-based system after the federal W-4 removed allowances, because the state still allows a personal credit tied to exemptions claimed.

Our W-4 Helper covers both the federal form and Delaware's allowance worksheet, and the paycheck calculator can show an employee how their withholding choices affect net pay.

Step 5: Choose a Pay Frequency

Delaware's Wage Payment and Collection Act requires paydays at least once per calendar month, with earned wages due within 7 days after the pay period closes. Most employers pay biweekly or semimonthly rather than relying on the monthly minimum, since shorter periods generally keep employees happier and reduce the size of any single payroll run.

Step 6: Deposits and Filing Calendar

Federal deposits follow a monthly or semiweekly schedule based on your lookback-period liability, and Delaware withholding deposits generally follow a comparable rhythm. Every quarter you'll reconcile federal withholding on Form 941; our Form 941 guide covers the filing in detail.

On the state side, plan for quarterly withholding filings with the Division of Revenue and quarterly wage reports with the Division of Unemployment Insurance. Set calendar reminders for both the week you register.

Step 7: Year-End: W-2s

W-2s are due to employees and the Social Security Administration by January 31. Delaware also requires an annual reconciliation of state withholding. Once your account numbers are correctly entered in your payroll system, this step is largely automatic.

Frequently Asked Questions

How often do I need to pay employees in Delaware?

At least once per calendar month on a regular payday you announce in advance. Earned wages are due within 7 days after the pay period ends, so most employers choose biweekly or semimonthly schedules rather than the monthly minimum.

What is the Delaware new employer SUI rate?

New employers pay 1.0% for 2026 under Delaware's Merit Rate Table, applied to the first $14,500 of each employee's wages.

Which form handles Delaware state withholding?

Form W-4DE, the Delaware Employee's Withholding Allowance Certificate. Delaware kept its own allowance-based form after the federal W-4 dropped allowances, since the state still allows a personal credit tied to exemptions claimed.

When do I need to report a new hire in Delaware?

Within 20 days of the hire date. Report to the Delaware Division of Child Support Services, which maintains the state's new hire directory.

Gusto automates the Division of Revenue and SUI filings covered above, including Delaware's Form W-4DE setup and quarterly wage reports. See Gusto if you'd rather not manage the Delaware filing calendar by hand.