Delaware Payroll Tax Registration

A Complete 2025 Employer Guide

Presented by US TAX BAY – Simplifying Payroll Tax Compliance Nationwide

If your business is planning to hire employees in Delaware or already has Delaware-based workers, you're legally required to register for payroll taxes. This includes obtaining proper licenses for withholding income tax and unemployment insurance.

Navigating these requirements can be challenging—but US TAX BAY is here to handle the setup for you, ensuring fast registration, full compliance, and peace of mind.

Payroll Tax Requirements in Delaware

Employers in Delaware are generally responsible for two types of payroll taxes:

• Withholding Tax – Deducted from employee wages

  
  

• Unemployment Insurance Tax – Paid by the employer

Delaware requires registration with two separate state agencies for these taxes. Let’s break it down:

1. Delaware Employer Withholding Tax Registration

Agency:

Delaware Department of Finance – Division of Revenue

Form:

CRA – Combined Registration Application

Who Must Register:

Any person or business operating in Delaware or employing individuals who are Delaware residents or perform work in the state must register and withhold Delaware state income tax.

How to Register:

✅ Option 1: File Online via the Delaware One Stop portal

✅ Option 2: Download and submit Form CRA (Combined Registration Application) manually

Before registering, make sure your business has a Federal Employer Identification Number (EIN) issued by the IRS.

Filing Method:

• Online (preferred for speed and convenience)

• By mail (for paper forms)

Fees & Licensing Requirements:

Delaware law requires all businesses operating in the state to:

• Obtain a business license

• Pay monthly or quarterly gross receipts tax, based on the company’s total revenue

• Pay a license fee as part of the application

Penalties for Non-Compliance:

Failing to obtain a business license will result in a $200 penalty, unless self-disclosed by the business owner.

2. Delaware Unemployment Insurance Tax Registration

Agency:

Delaware Department of Labor – Division of Unemployment Insurance

Form Required:

Form UC-1 – Report to Determine Liability

Who Must Register:

Businesses that employ one or more individuals in Delaware must register for unemployment insurance tax and report wages on a regular basis.

How to Register:

• By submitting Form UC-1 to the Division of Unemployment Insurance

• Online registration options may also be available through Delaware One Stop

Filing Method:

• Mail (traditional submission of Form UC-1)

• Contact the Division for up-to-date electronic filing options

Delaware Payroll Tax Summary Table

Tax Type	Agency	Registration Form	Filing Method
Withholding Tax	DE Dept. of Finance – Division of Revenue	CRA	Online or Mail
Unemployment Tax	DE Dept. of Labor – Division of UI	UC-1	Mail

US TAX BAY Makes It Easy to Register in Delaware

You don’t need to navigate multiple state departments or tax codes alone. At US TAX BAY, we offer:

✅ Complete employer payroll tax registration

✅ EIN acquisition assistance

✅ Withholding and UI account setup

✅ Business license application filing

✅ Ongoing payroll compliance guidance

Ready to Hire Employees in Delaware?

Let US TAX BAY handle your payroll licensing needs with speed, accuracy, and zero stress. We register your business so you can focus on growth.

Contact us today

Delaware payroll tax registration, Delaware employer withholding tax, Delaware unemployment insurance tax, Form CRA Delaware, Form UC-1 Delaware, register for payroll tax Delaware, business license Delaware, US TAX BAY payroll services