Section 1: GENERAL


Section 1151 of Title 30 of the Delaware Code requires every employer who;

  • maintains an office or transacts business within Delaware, and
  • who makes payments of wages or other remuneration to residents or non-residents which are taxable in Delaware and which are subject to withholding under the Internal revenue Code;

must withhold from those wages or remuneration an amount substantially equivalent to the tax estimated to be due from the employee. The Delaware Code does not specifically define the terms "wages" or "other remuneration" which are subject to withholding. Delaware withholding is required provided such payments are subject to withholding under the Internal Revenue Code.

Every employer required to deduct and withhold tax shall file a withholding tax return as prescribed and pay over to the Division of Revenue or to its depository the tax required to be deducted and withheld. Returns and payments are due quarterly, monthly or eighth monthly based on the filing method defined by the statue. The filing method is determined by using a "lookback period" between July 1 and June 30 immediately preceding the calendar year for which the lookback period is determined. The lookback period for calendar year 2000 withholding will be the period July 1, 1998 through June 30, 1999. The Division of Revenue will determine annually the amount of tax reported during the respective lookback period and mail to withholding agents the appropriate vouchers to remit amounts withheld. The withholding methods and thresholds are listed below:


WITHHOLDING DURING FILING METHODS LOOKBACK PERIOD


QUARTERLY $3600 OR LESS

MONTHLY $3600.01 AND LESS THAN $20,000

EIGHTH MONTHLY $20,000.01 AND GREATER

Please note: All withholding agents having no prior record of withholding, will file on a monthly basis until the next "lookback period".

An employer may rely upon the number of Federal withholding exemptions claimed by the employee, or as provided by Section 15 of these regulations (Withholding Exemptions and Allowances).

Definition of Employers