The “First State” of Delaware is not unique when it comes to paying taxes. Each person that earns a wage in the state of Delaware, regardless of where they live, must pay state income taxes, in addition to federal income taxes. The next logical step is to ask: “so, how much should be withheld from each person’s income for state income taxes?” Good question – I’m glad you asked. There is a simple form to help determine this.
In addition to the federal income tax withholding form, W4, each employee needs to fill out a W4 form for their Delaware State income tax withholding. Yes, this is the same form, but a duplicate copy for state-level income tax withholding needs to be kept on file should you need to produce it. This form is available online here.
And, please take note! If no income tax withholding form is filled out, taxes must be withheld at the highest level possible – single, no deduction allowances – even if the employee is known to be married. To prevent things like this from happening, I cannot stress enough the importance of having each employee file a W4 form for both state withholding as well as federal, so please make their completion a priority.
