Payroll Delaware, Unique Aspects of Delaware Payroll Law and Practice

The Delaware State Agency that oversees theEmployer's name
collection and reporting of State income taxesEmployers address
deducted from payroll checks is:Employer's Federal Employer Identification
Number (EIN) This information must be reported
Division of Revenue Withholding Divisionwithin 20 days of the hiring or rehiring.
820 N. French St.The information can be sent as a W4 or
Wilmington, DE 19801equivalent by mail, fax or electronically.
302-577-8200There is a $25.00 penalty for a late report in
allows you to use the Federal W-4 form toDelaware.The Delaware new hire reporting agency
calculate state income tax withholding.Not allcan be reached at 302-577-7171 or on the web
states allow salary reductions made under Sectionsite at .Delaware does not allow compulsory direct
125 cafeteria plans or 401(k) to be treated in thedeposit.Delaware requires the following information
same manner as the IRS code allows. Inon an employee's pay stub:Wages due
Delaware cafeteria plans are: not taxable forpay period dates
income tax calculation; taxable for unemploymenthours worked for hourly workers
insurance purposes. 401(k) plan deferrals are: notitemized deductionsDelaware requires that
taxable for income taxes; taxable foremployee be paid no less often than
unemployment purposes.In Delaware supplementalmonthly.Delaware requires that employees must
wages are required to be aggregated for thebe paid within 7 days after the end of the pay
withholding calculation..You must file your Delawareperiod.Delaware payroll law requires that
State W-2s by magnetic media if you areinvoluntarily or voluntarily terminated employees
required to file your federal W-2s by magneticmust be paid their final pay by the next regular
media.The Delaware State Unemploymentpayday or by mail upon request.Deceased
Insurance Agency is:The Department of Laboremployee's wages up to $300.00 must be paid to
Division of Unemployment Insurancethe surviving children under 21 custodian, surviving
4425 N. Market St.spouse, children 21 and over or the deceased's
Wilmington, DE 19802parents (in that order) when a "Proper Demand"
302-761-8446has been made.Escheat laws in Delaware require
State of Delaware taxable wage base forthat unclaimed wages be paid over to the state
unemployment purposes is wages up toafter five years.There is no provision in Delaware
$8,500.00.Delaware has optional reporting oflaw concerning record retention of abandoned
quarterly wages on magneticwage records.Delaware payroll laws allow for a tip
media.Unemployment records must be retained incredit against Delaware State minimum wage of
Delaware for a minimum period of four years.$3.92 per hour.In Delaware the payroll laws
This information generally includes: name; socialcovering mandatory rest or meal breaks are: a
security number; dates of hire, rehire and30-minute meal period during a 7 and one
termination; wages by period; payroll pay periodshalf-hour shift. Taking place after the first two
and pay dates; date and circumstances ofhours and before the last two hours o the
termination.The Delaware State Agency chargedshift.The Delaware law requires that wage and
with enforcing the state wage and hour lawshour records be retained for a period of at least
is:The Department Laborthree years.The Delaware agency charged with
Division of Industrial Affairsenforcing Child Support Orders and laws is:Division
Labor Law Enforcement Sectionof Child Support Enforcement
4425 N. Market St.P.O. Box 904
Wilmington, DE 19802New Castle, DE 19720
302-761-8200302-577-7171
minimum wage in Delaware is $6.15 perhas the following provisions for child support
hour.There is also no general provision in Delawaredeductions:When to start Withholding? 7 days
State Law covering paying overtime in aafter first payday after receipt of order.
non-FLSA covered employer.Delaware State newWhen to send Payment? Payday.
hire reporting requirements are that everyWhen to send Termination Notice? "Promptly"
employer must report every new hire and rehires.Maximum Administrative Fee? No Provision
The employer must report the federally requiredWithholding Limits? Federal Rules under CCPA.
elements of:Employee's nameCharles J. Read, CPA has been in the payroll,
Employee's addressaccounting and tax business for 30 years, the last
Employee's social security numberfifteen in private practice. Mr.