Q. What are the due dates for tax year 2020?
A. Delaware due dates are the same as Federal.
Form type Paper Electronic W-2 2/1/2021 2/1/2021 1099-NEC 1099-MISC 3/1/2021 3/31/2021 1099-R
Q. Are there any changes for tax year 2020 data reported in 2021?
A. There are two changes:
- IRS form 1099-NEC is supported
(see “What 1099 forms must be reported to the Delaware Division of Revenue?”, below)
- Delaware form W-3 must be filed if Delaware withholding is reported
(see “Reconciliation/Transmittal Forms” below)
Also, please note:
- 1099 “State/Payer’s state no.” data should be entered in the Pub 1220 “B” record “Special Data Entries” area, as described below.
- EFW2 “RW” records should be included in W-2 submissions, as described below.
- Do not truncate the employee SSN on W-2 “Copy 1—For State, City, or Local Tax Department” or in the EFW2 “RS” record. All nine digits must be present.
Q. Does Delaware accept consolidated withholding tax payments for more than one employer/payer?
A. No. Withholding must be paid under the Federal Employer Identification Number of the entity that owes the tax, as shown on the printed W-2 or 1099-R form issued to the employee/payee. However, multiple employers can be reported in a single W-2 submission file, and multiple payers can be reported in a single 1099 submission file.
If forms W-2/1099 will be issued under multiple identification numbers, then Delaware withholding payments must be made under multiple identification numbers as well.
Q. What options are available for W-2 and 1099 submission?
A. Currently, there are two:
- online – Any employer/payer or bulk submitter may use online submission through our website.
- paper – Paper is accepted only for those employers/payers which are permitted to submit corresponding Federal information on paper. If you are not required to submit Federal data electronically, but choose to do so, you are permitted to submit to Delaware on paper.
Submissions on magnetic media are no longer accepted.
Q. What special provisions or requirements are there for bulk submitters of W-2 and/or 1099 information to the Delaware Division of Revenue?
A. None. Reporting requirements, data formats, and procedures are the same whether the data is submitted directly by the employer, or by a third party.
Q. What 1099 forms must be reported to the Delaware Division of Revenue?
A. The duty to report 1099-MISC and 1099-NEC information to the Division of Revenue applies in the case of forms issued to Delaware residents (regardless of where services were performed) or to non-residents for work performed within Delaware. Forms 1099-R are required to be reported to Delaware in the case of any person issued a Form 1099-R on which Delaware taxes are reported as withheld.
Q. Does Delaware participate in the combined Federal/State 1099 filing program?
A. Yes, but 1099-MISC, 1099-NEC, and 1099-R information is required to be submitted directly to the Delaware Division of Revenue.
Q. How do I prepare and file Form W-2c and Form W-3c with the Division of Revenue?
A. Form W-2c (Corrected Wage & Tax Statement) is used to make corrections on W-2 forms already issued. The form is used to make any and all corrections on previously issued W-2s from current or past years.
Form W-2c is prepared by entering both the previously incorrect information and also the corrected information. Only data you want corrected should be included on the W-2c form.
The Delaware Division of Revenue only accepts W-2c and W-3c forms in paper format. At the present time, these forms cannot be electronically filed. Once completed, W-2c forms should be sent to the Division of Revenue at the post office box address listed below and also issued to employee(s) as soon as possible so that they can file their tax returns.
Q. What are the specifications for W-2 data files?
A. Delaware follows the SSA EFW2 specifications (formerly MMREF-1).
- Each data file should include RA, RE, RW, RS, and RF records. RT records are optional. (RV, RO, RT, and RU records will be ignored if present.)
- RS records are required for all employees with Delaware withholding, and must include the following:
Social Security Number
Name and address
City, state and zip code
Delaware wages and withholding
Numeric state code (“10” for Delaware)
Other fields in the state record may be left blank or zero-filled.
- RW records should include, at a minimum, SSN and the “Wages, Tips and Other Compensation” value.
- Employees without Delaware wages or withholding need not be reported.
- The RF record serves only as an end-of-file marker; the data fields in the RF record are ignored.
- An employer’s Delaware ID number is its 9-digit Federal employer ID.
- Corrections via the SSA EFW2C specifications are not supported at this time. A replacement file can be submitted; please contact firstname.lastname@example.org for more information.
- Multiple employers may be reported in one file.
- Multiple files may be submitted for the same employer.
Q. I have a PDF file from the SSA’s W-2/W-3 Online program. Can I submit this file to Delaware?
A. No, we do not currently accept PDF files. If you are permitted to file with SSA on paper, you can also file with Delaware on paper. Print the W-2 forms and mail them to us with Form W-3.
Q. Can I send Delaware the same EFW2 file I sent to SSA?
A. Only if it includes Delaware wage and withholding information. State information (in “RS” records) is optional in your submission to SSA, but required in your submission to Delaware.
Q. What are the specifications for 1099 data files?
A. Delaware follows the IRS Pub 1220 specifications.
- For 1099-R, MISC, or NEC forms using “State/Payer’s state no.” please enter the two letter state abbreviation at position 663-664 in the B record, and the state payer ID number at 665-684. The payer ID can be formatted as on the paper form, with or without hyphens. If less than 20 characters long, right-fill with spaces. If “State/Payer’s state no.” is not used, these fields can be left blank.
- Corrections via the Pub 1220 specifications are supported.
Q. Can data files contain delimiters?
A. Yes, either carriage returns or CR/LF pairs. Files of fixed length records with no delimiters are also accepted.
Q. Are compressed or encrypted files accepted?
A. Encrypted files are not accepted. Compressed (ZIP) files are accepted for online submissions only.
Q. Is a utility provided to check the file format?
A. A file can be submitted to the online test system (see below.) If processed successfully, e-mail will be sent to the address entered when the file was submitted, with a summary of the data found.
Q. What are the reconciliation forms?
A. Delaware Form W-3 must be filed for each EIN under which Delaware withholding was reported on W-2 or 1099 forms. Please do not submit Federal form W-3 to Delaware! Only one Form W-3 should be filed for each EIN, even if multiple W-2 and/or 1099 submissions were made.
For 1099 forms that don’t report Delaware withholding, IRS form 4804 should be submitted. Delaware does not use the Transmitter Control Code, it can be left blank. If multiple submissions of 1099 data are made for a payer, form 4804 should be submitted separately for each of them.
Q. Do the reconciliation forms allow for reporting multiple employers / payers?
A. No. A separate form must be used for each employer or payer.
Q. When are the reconciliation forms due?
A. Delaware form W-3 is due January 31 (or the next business day), if all withholding for the EIN was reported on W-2 forms. If any withholding was reported on 1099-R forms, the W-3 is due when the annual 1099 data submission is due (see table at top of page.)
Form 4804 is due when the 1099 forms it reconciles are due (see table at top of page.)
Information in this section applies to the online submission of annual reports of W-2 and 1099 data.
Online filing of Delaware form W-3 will be available in January at http://www.tax.delaware.gov/.
Q. Is registration required for online submission?
A. Registration is not required for online submission of annual reports of W-2/1099 data.
Q. If online submission is used, how are the reconciliation forms submitted?
A. The annual withholding reconciliation, form W-3, can be filed online (starting in January 2021) or on paper. Check the box indicating that W-2/1099 data was submitted electronically.
For 1099 submissions that do not report withholding, submit form 4804 on paper. Please write “1099 data submitted electronically” on the form and mail to the address in the contacts & addresses section of this document.
Q. Is there any requirement for the name of a file submitted online?
A. No, except that the combined name and extension (not including path) should be no more than 50 characters long.
Q. Is there a limit to the size of a file submitted online?
A. Yes, currently it’s about 200 Mb.
Q. What types of compressed files are accepted online?
A. Standard ZIP compression only.
Q. Is a test submission required?
Q. Is tech support available for online submission?
A. Yes, by e-mail to email@example.com.
Q. Where is the website for online submission?
Q. Can test data be submitted online?
Q. Is the online system always available?
A. There is no scheduled downtime; it should be available 24 x 7.
W-2 filing requirements: Public Service, 302-577-8200
1099 filing requirements: Kathy Revel.
File formats and the online submission process: firstname.lastname@example.org
Mail your paper forms (W-2, 1099, and reconciliation) to:
State of Delaware
Division of Revenue
P.O. Box 830
Wilmington, DE 19899
If you are unable to comply with any of the requirements stated here, please contact email@example.com to request a variance.