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Free Delaware payroll tax
calculator (and DE tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

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We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: May 6, 2024

At the top of this page is a handy calculator you can use to figure out your Delaware payroll and federal payroll taxes. All you need to do is enter wage and W-4 allowances for each employee, and it will calculate gross pay, take out deductions, and come up with the net pay you’ll need for writing your employees’ paychecks. In addition, below is more information to help Delaware understand their obligations related to payroll taxes.

Federal payroll taxes for Delaware employers

First of all, let’s give Uncle Sam his due. Below is a quick overview of what you need to know when it comes to federal payroll tax withholdings. If you would like to get into each tax withholding in detail, check out our comprehensive step-by-step guide.

  • Calculate Gross Wages:
    • For all your hourly employees, multiply their hours worked by their pay rate (and don’t forget to pay the higher rate for any overtime hours worked).
    • For all your salaried employees, divide each employee’s annual salary by the number of pay periods your business has.
    • Remember to add in bonuses, commissions, and tips as well.
  • Subtract Any Pre-Tax Deductions:
    • If your employees contribute to 401(k), FSA, HSA, or any other pre-tax withholding accounts, subtract the amount from their gross pay prior to applying payroll taxes.
  • Deduct Federal Income Tax:
    • This is the big enchilada, the biggest tax that you have to withhold from your employees. Federal income tax brackets go all the way up to 37%. We won’t get into the nitty-gritty details here, but you can find more information through the IRS Publication 15-T.
  • Deduct (and Match) FICA Taxes:
    • Social Security Tax: Withhold 6.2% of each employee’s taxable wages up until they reach total earnings of $168,600 for the year. Earnings above $168,600 are not taxed. As an employer, you will need to match what your employees pay dollar-for-dollar.
    • Medicare Tax: Withhold 1.45% of each employee’s taxable wages up until they have reached total earnings of $200,000 for the year. There is no wage cap for Medicare. In fact, for salaries above $200,000, employees need to pay what’s called an Additional Medicare Tax of 0.9%. Only the employee is responsible for paying the Additional Medicare Tax. You as the employer will need to match the 1.45% Medicare Tax dollar-for-dollar, but you will not be responsible for matching the Additional Medicare Tax of 0.9%.
  • Pay FUTA Unemployment Tax:
    • You will need to pay 6% of the first $7,000 of taxable income for each employee per year, maxing out at $420 per employee per year. This one is all on you. FUTA tax is the sole responsibility of the employer. Your employees are not responsible for paying this tax. Here’s a huge caveat, though. If you pay state unemployment taxes, you are eligible for a tax credit of up to 5.4%, making your FUTA tax rate effectively 0.6%.
  • Subtract Any Post-Tax Deductions:
    • Some of your employees could be responsible for post-tax deductions such as court-ordered wage garnishments, child support, etc. If so, you will need to withhold these deductions from their paychecks.

Workers’ compensation is mandated across most states, and Delaware has requirements employers should keep in mind. Learn how policies work, how this type of coverage protects employees from workplace injuries and illnesses, and what employers should know in our guide to Delaware workers’ compensation insurance.

2024 Delaware state payroll taxes

Now that we’re done with federal income taxes, let’s tackle Delaware state taxes. The State of Delaware has a progressive income tax, similar to how the federal income tax works. The more money your employees make, the higher the income tax. Tax rates range from 2.2% to 6.6%. Employees who make more than $60,000 will hit the highest tax bracket.

Wilmington city tax

On top of paying Delaware state taxes, employees who live or work in Wilmington have to pay a local city tax. You will need to withhold 1.25% from their paychecks.

Delaware state unemployment insurance (SUI)

As an employer, you’re responsible for paying state unemployment insurance, which covers those unemployed through no fault of their own. The wage base in Delaware is $10,500 for 2024, and rates range from 0.3% to 6.5%. If you’re a new employer, rates vary from 1.8% to 2.3%.

 

Remember, paying your SUI in full and on time qualifies you to get a whopping 90% off of your FUTA tax bill, so make sure you pay attention to the due dates.

 

What about reporting new hires?

In the state of Delaware, employers are required to report new employees to the Division of Child Support Services (DCSS) within 20 days of their hire (or rehire) date. Businesses have a couple of options.

 

Electronic reporting
The Delaware State of New Hires has a portal to that employers can use. To register, you will need to have your FEIN, address, and email address available. Learn more and register

 

Non-electric new hire reporting 
Employers may also share a printed list of new hires. This can be mailed or faxed. Learn more and where to send

Did you know in the state of Delaware?

  • When an employee is fired, final wages are due the next payday.
  • When an employee is laid off, final wages are due the next payday.

 

See all the final paycheck laws by state

Now write those paychecks

That’s it! You’ve done it! You’ve checked “payroll taxes” off your to-do list so you can move onto important things like growing your small business. Once each employee’s net pay is calculated, you’re in the clear. All you have to worry about is getting your employees paid on time as well as setting aside whatever you owe in FICA and unemployment taxes. Those numbers can add up quickly!

 

You will need to use Form 941 to file federal taxes quarterly, and Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. More information about employment tax due dates can be found here.

Additional Delaware payroll tax resources

Our calculator is here to help, but of course, you can never learn enough, especially when it comes to payroll taxes. Here are some additional resources and contact information to help you run Delaware payroll:

 

The Official Website of The First State | Contact the Division of Small Business | Business Resource Connection | Withholding Tax FAQs | Withholding Tax Due Dates

 

These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.

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More helpful payroll calculators

Delaware employers can use the calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions (and feel confident when cutting paychecks). That said, there are times when companies need to do some extra number crunching. As an example, do you reward your top performers with bonuses? Keep in mind that Uncle Sam considers these payments to be supplemental wages and requires taxes to be withheld. In addition, sometimes an employee will leave to work somewhere else, and you will need to figure out how much their final paycheck will be. So, if you can use a little more help managing the math, check out some of the calculators listed below.

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