Every employer maintaining an office or conducting business in Delaware who makes a payment of wages or other remuneration to a resident or non-resident (of Delaware) must pay Withholding Tax. Withholding Tax requires that a business withhold an estimated amount of tax from its employees. New employees must file Federal Form W-4 or Form W-4A regarding exemptions. Based on that information, the employer is to withhold an appropriate tax from the employee’s compensation.
Every year, employers must supply each employee with a statement showing their total wages earned and the amount of taxes withheld on a W-2 form. Employers must mail W-2 forms to all employees by January 31st. Employers must additionally file a Reconciliation of Monthly/Quarterly/Eighth-Monthly Returns on a W-3 form with a duplicate of all W-2 forms to the Division of Revenue before February 28th.
Additional information: Withholding of Delaware Income Tax, Regulations, Employer’s Duties, and Withholding Tables.