District of Columbia Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

Click here for more about US Federal withholding in the Goldenseal payroll accounting software.
Click here to download free updates for DC and federal payroll tax tables.

HINT-- Turtle Creek Software provides free annual updates for DC and federal tax withholding rates.

The District of Columbia has income tax withholding. It calculates payroll withholding amounts with a step table similar to the federal withholding tax tables, though with fewer steps. Withholding tax formulas did not change for 2021. The tax formulas have changed in 11 of the last 30 years, most recently in 2018.

DC State Withholding Instructions

To enter withholding information for an employee who lives in DC, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of DC dependents into the State Exemptions field.
  7. Enter the DC Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

DC State Unemployment Tax Instructions

The District of Columbia SUTA tax is charged on the first $9,000 of wages for each employee (2021 rate, unchanged for many years). New companies pay a 2.7% starting tax rate (or the average rate paid by all employers, if that is higher). After the first year, the DC SUTA tax rate is different for each company, based on its hiring experience and the current fund balance.

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

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the DC SUTA tax in the list, and double-click on it. HINT: If you don't see DC SUTA in the list, you'll first need to import the latest payroll tax tables.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

DC Marital Status

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

  • Single- single employee with one personal exemption
  • Married- married employee with two+ personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- single employee claims Head of Family status
  • Other- not used

Employees in Multiple States

If you have employees that are residents of Maryland and/or Virginia, you'll also need to import tax tables for those states. Assign the appropriate tax package to each employee, depending on where they live.

DC Tax Contacts

Tax agency website

Payroll Tax Office-- 202 727-4829
SUTA info-- 202 724-7273

District of Columbia Office of Tax & Revenue (withholding)
Customer Service Center
941 N Capitol St NE, 1st floor
Washington DC 20002

District of Columbia Employment Services Tax Division (SUTA)
609 H Street NE Room 367A
Washington DC 20002

Contact info updated 1/5/10

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