Guide to Delaware Pay Stub Requirements and Paycheck Laws
If your business operates in Delaware, it's crucial to understand key aspects before issuing pay stubs to employees and contractors.
This guide outlines relevant laws and regulations governing employers in Delaware regarding payroll management and the provision of pay stubs.
Pay stub regulations in Delaware
1. Are pay stubs required by law in Delaware?
Employers in Delaware must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in Delaware?
You will need to pay your employees at least monthly once. As pay stubs are mandatory in Delaware, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in Delaware?
The following information must be included in employee pay stubs:
- Amount of wages due
- Pay period covered by the payment
- Amounts of deductions (separately specified) that have been made from the wages
- Total number of hours worked in the pay period (for employees who are paid at an hourly rate)
4. Does Delaware have a state income tax?
Yes, state income taxes are applicable to employees in the state of Delaware.
5. Are there any other taxes applicable to Delaware?
Yes, there are local taxes in Delaware. Employer and employee taxes are applicable to the city of Wilmington.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee’s total allowances
- Employee’s exemption status from state withholding
- Filing status and additional state withholding amount
Delaware wage and hour laws
Delaware mandates that employers comply with wage and hour regulations, ensuring that non-exempt employees receive fair compensation, including at least minimum wage, proper payment for overtime hours, adequate meal and rest breaks, and accrual of suitable paid time-off benefits.
In Delaware, these regulations encompass various aspects of employment law matters.
Delaware Minimum wage
In Delaware, businesses are legally obligated to ensure that their employees are paid at least the minimum hourly wage as mandated by statutory regulations. As of 2024, the basic minimum rate per hour stands at $13.25. Additionally, if the federal minimum wage rate exceeds the state rate, Delaware adopts the federal rate as per reference.
Overtime pay
The Fair Labor Standards Act (FLSA) mandates that most covered employees receive overtime pay at a rate of time and one-half their regular pay for all hours worked beyond 40 per week. However, employees in executive, administrative, and professional positions are exempt from these overtime pay requirements.
Delaware meal break
Employers are mandated by law to provide employees with a meal break lasting a minimum of thirty (30) consecutive minutes if they are scheduled to work seven and one-half (7 1/2) consecutive hours. This break must occur sometime after the first two hours of work and before the last two hours. While the break does not have to be paid, employees must be entirely relieved from their duties during this time, and it should be uninterrupted and free time.
Delaware rest break
Employers are not legally required to provide rest breaks to their employees.
Paid time off and leave
Delaware mandates that employers offer employees a range of leave benefits, including both obligatory and optional types.
| Required Leave | Non-Required leave |
|---|---|
| Unpaid | Paid or Unpaid |
| Delaware lacks specific legislation regarding medical or family leave; however, employers may be obligated to grant employees unpaid leave in compliance with the federal Family and Medical Leave Act. | Vacation leave |
| Jury duty leave | Bereavement leave |
| Military leave | Holiday leave |
| Sick leave | |
| Voting leave |
Delaware State payroll taxes 2024
In Delaware, payroll taxes are classified into the following categories:
- Delaware Personal Income Tax(PIT)
- Delaware State Unemployment Insurance (UI)
Delaware Personal Income Tax(PIT)
In Delaware, state personal income tax rates fluctuate based on an individual's filing status and income level. Filing statuses encompass Single, Married Filing Separately, Married Filing Jointly, and Head of Household.
Delaware implements a graduated tax rate system, ranging from 2.2% to 5.55% for income below $60,000 and a flat rate of 6.60% for income of $60,000 or more. Consequently, there's no necessity to withhold more than 6.6% of all taxable distributions and taxable income for the State of Delaware. Here are the tax rates and brackets for single filers and married filers:
| If the Delaware taxable income | The tax is |
|---|---|
| Over $0 but not over $2,000 | $0 |
| Over $2,000 but not over $5,000 | 2.20% of the excess over $2,000 |
| Over $5,000 but not over $10,000 | 3.90% of the excess over $5,000 |
| Over $10,000 but not over $20,000 | 4.80% of the excess over $10,000 |
| Over $20,000 but not over $25,000 | 5.20% of the excess over $20,000 |
| Over $25,000 but not over $60,000 | 5.55% of the excess over $25,000 |
| Over $60,000 | 6.60% of the excess over $60,000 |
The standard deduction for single filers in Delaware is $3,250, while for couples filing jointly, it is $6,500.
Delaware State Unemployment Insurance (UI)
Delaware enacted the State Unemployment Tax Act (SUTA) to provide assistance to individuals facing unemployment by providing unemployment benefits. This legislation enables the state to collect the funds required to administer unemployment insurance benefits to eligible individuals during periods of job loss.
In 2024, Delaware's tax rates vary, ranging from the lowest rate of 0.1% to the highest rate of 5.4%.
New employers are subject to a steady rate of 1.2%.
The taxable wage base remains consistent at $10,500
while the new construction rate is also 1.2%.
Delaware payroll tax filing
- Report of New hire Employees
- Report of Independent Contractors
- Personal income tax filing(Form PIT-RES, Form PIT-NON)
- Quarterly tax reports(Form UC-A8)
Report of New hire Employees
Employers in Delaware must report new hires within 20 days from the hire date or rehire.
Report of Independent Contractors
Governmental agencies are obligated to report independent contractors they hire. Other employers have the option to provide the same information on their independent contractors if they so decide.
How to report employees and independent contractors new hire in Delaware?
Submitting new hire information in Delaware offers various options, allowing flexibility in the reporting process.
| Online | Fax | |
|---|---|---|
| Employees and independent contractors New Hire Report | Delaware State Directory of New Hires Address Information: P.O. Box 90370 Atlanta, GA 30364 Public Phone: 855-481-0018 | Fax 1: 855-481-0047 |
Personal income tax filing(Form PIT-RES, Form PIT-NON)
Taxpayers are advised to file their taxes electronically, as paper returns typically require more time for processing. Filing online is available for free at tax.delaware.gov or through other electronic filing programs. Opting for direct deposit when requesting refunds can accelerate the refund delivery process. The deadline for filing Delaware Personal Income Tax for the current year is Tuesday, April 30, 2024.
When filing Delaware Personal Income Tax, residents can utilize the Individual Resident Tax Form (PIT-RES), while non-residents have the option of using the Individual Non-Resident Tax Form ( PIT-NON).
Delaware imposes various penalties and interest rates for different scenarios related to income tax:
- Interest Rate for Underpayment or Late Payment: ½% per month from the due date to the payment date.
- Penalty for Late-Filing of Balance Due Return: 5% per month of the balance due for late-filed returns.
- Penalty for Negligence/Fraud/Substantial Understatement: Severe penalties for filing false or fraudulent returns, regardless of information source.
- Penalty for Failure to Pay: 1% per month (up to 25% maximum) of the net tax liabilities for late payment.
- Penalty for Failure to File/Pay Estimated Taxes: 1½% per month of the computed tax payment for late filing or payment of estimated taxes.
Quarterly tax reports(Form UC-8A,Form UC-8)
Employers are required to submit quarterly tax reports and promptly pay their unemployment insurance taxes, regardless of whether wages were paid out during the quarter. The designated form for these reports is UC-8A, the Quarterly Payroll Report. Additionally, employers must also file Form UC-8, the Quarterly Tax Report.This form should be completed and submitted (postmarked) by the last day of the month following the respective calendar quarter.
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Failure to comply will result in penalties and interest charges. Depending on the situation, delinquent tax rates may be applied instead of the standard experience-based tax rate. If the report is submitted more than five days after the due date, a fine of $17.25 will be imposed. Additionally, interest accrues at a rate of 1.5% per month or a fraction thereof on assessments not paid by the due date.
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and Delaware state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
With SecurePayStubs' paystub generator, you can swiftly create pay stubs for your employees and independent contractors, complete with precise calculations for federal and Delaware state taxes, all in under 2 minutes. Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.
Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 8, 2024.