Withholding Regulations and Employer's Duties


Important Note: The following pages are an electronic reproduction of the Withholding Rules and Regulations Booklet - some changes that appear on the electronic version may not be the same as the written version, if you have any questions please contact Revenue's Withholding Department at (302) 577-8778 or bustax@state.de.us for clarification.

    1. General

    2. Definition of Employers

    3. Duties of Employers

            (a) Registering to Withhold Income Taxes
            (b) Request for Forms
            (c) Hiring New Employees – Form W-4,W-4A, or SD/W4A
            (d) Reporting New Hires
            (e) Payment Compensation to an Employee
            (f) Statement of Compensation Earned – Form W-2
            (g) Annual Reconciliation of Withholding Tax Returns
            (h) Reporting of Employees’ Annual Wage Data

Important Note: Please see our W-2 and 1099 reporting FAQs for revised filing requirements.

            (i) Common Paymaster
            (j) Reporting of 1099 data

    4. Employer Identification Number

    5. Depositing Taxes
            (a) Monthly
            (b) Quarterly
            (c) Eighth Monthly
            (d) Lockbox Processing

    6. Electronic Filing Programs
            (a) Mandatory Electronic Funds Transfer Program
            (b) Business Internet Filing Program

    7. Employer’s Liability for Withheld Taxes

    8. Definition of Employees
            (a) General
            (b) Household Employees
            (c) Employers of Farmworkers
            (d) Crew Leaders

    9. Employee’s Social Security Number

    10. What are Taxable Wages
            (a) General
            (b) Withholding Requirements for Farmworkers

    11. Compensation of Residents and Non-Residents

    12. Deferred Compensation

    13. Payroll Period

    14. Supplemental Wage Payments Including Tips

    15. Withholding Exemption and Allowances
            (a) General
            (b) Employees claiming 14 or More Allowances

    16. Withholding of Personal Income Tax for Non-Residents

    17. Computing Withholding Taxes

    18. Employer’s Failure to Withhold

    19. Amended Monthly, Quarterly and Reconciliation returns
            (a) Amended Monthly or Quarterly Returns
            (b) Employee Under and Over Collections
            (c) Amended Annual Reconciliation

    20. Withholding Statements - Form W-2

    21. Annual Report of Withholding – Form W-3

    22. Records to be Kept

    23. Wage Attachments

    24. Withholding Tax Tables: Wage – Bracket Table Method of Withholding