Delaware Payroll Instructions

Delaware has state income tax withholding, with payroll deductions that are calculated from a 'step' table similar to the federal payroll tax tables. Rates did not change in 2023 (withholding rates have changed in 6 of the last 33 years).

We provide free withholding tax table updates for Delaware taxes and federal taxes each year.

NOTE: Delaware is the second smallest state. It is also the state with the second lowest highest point (a mere 448 ft)! Only Florida has a lower highest point.

Delaware State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Open the Payroll tab on the left, and choose Employees.
  2. Locate the employee's record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Delaware dependents into the State Exemptions field.
  7. Enter a Delaware Tax Package into the Tax Package field, based on the employee's residence and work location, and the W4 they use. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. HINT: If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

Delaware State Unemployment Tax Instructions

In 2022, Delaware calculates state unemployment tax on the first $14,500 of wages for each employee (unchanged for many years). The tax rate is different for each company, based on its past employment history (range .3% to 8.2%). For most new businesses, the starting rate is 2.3%, though it is higher for construction businesses.

To enter your state SUTA tax rate into Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open the Delaware SUTA item HINT: If you don't see Delaware SUTA in the list, you'll need to import payroll info first.
  3. Enter that you pay into the percentage field next to Calculation method.
  4. If the tax cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Maryland Residents who work in Delaware

If you have employees who live in Maryland but work in Delaware, use one of the special tax packages for Maryland residents. Ditto for Delaware residents who work in Maryland. Otherwise, enter a standard state tax package into the Tax Package field of the Employee account.

Delaware Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

State Tax Contacts

Website

Official State Lawn Ornament

Pink plastic Canada goose.