Do I need a permit to hire employees?

Delaware Employee Hiring Permits and Requirements

In Delaware, you generally do not need a specific permit solely to hire employees. However, there are important operational steps and registrations required to legally employ workers in the state.

Key Operational Steps When Hiring Employees in Delaware

• Register Your Business: Ensure your business is properly registered with the Delaware Division of Revenue and the Division of Corporations if applicable.
• Obtain an Employer Identification Number (EIN): This federal number from the IRS is required for payroll tax purposes and employee reporting.
• Register for Delaware State Taxes: Register with the Delaware Division of Revenue for withholding tax and unemployment insurance tax accounts.
• Comply with New Hire Reporting: Delaware requires employers to report newly hired employees to the state within 20 days of hire to support child support enforcement programs.
• Verify Employee Eligibility: Complete Form I-9 and use E-Verify if your business participates, to confirm legal work authorization.
• Obtain Required Workers’ Compensation Insurance: Delaware mandates workers’ compensation coverage for most employers with employees.

Additional Operational Considerations

• Employee Classification: Correctly classify workers as employees or independent contractors to avoid compliance issues.
• Payroll Setup: Establish payroll processes that comply with federal and Delaware withholding, unemployment, and reporting requirements.
• Recordkeeping: Maintain accurate employee records, including hiring documents, tax forms, and wage information, as required by Delaware and federal law.

As of 2026, always verify current requirements with the Delaware Division of Revenue and the Department of Labor, as operational rules and reporting obligations may update.