How do I hire my first employee?

How to Hire Your First Employee in Delaware

Hiring your first employee in Delaware involves several operational steps to ensure compliance and smooth onboarding. Follow this practical guide to get started efficiently.

Step 1: Register Your Business for Employer Purposes

• Obtain an Employer Identification Number (EIN): Apply through the IRS website to use for tax reporting and payroll.
• Register with Delaware Division of Revenue: Set up your business for state tax withholding and unemployment insurance.
• Register with Delaware Department of Labor: This is necessary for unemployment insurance and new hire reporting.

Step 2: Understand Delaware Employment Laws and Requirements

• Employee Classification: Correctly classify workers as employees or independent contractors to avoid compliance issues.
• Minimum Wage Compliance: Delaware’s minimum wage may change annually; confirm the current rate as of 2026.
• Workplace Posters and Notices: Display required labor law posters in the workplace or provide them electronically if remote.

Step 3: Set Up Payroll and Tax Withholding

• Implement Payroll Systems: Use payroll software or services that handle federal and Delaware state tax withholding.
• Withhold and Remit Taxes: Deduct federal income tax, Social Security, Medicare, and Delaware state income tax from employee wages.
• Unemployment Insurance Contributions: Pay Delaware state unemployment insurance taxes as required.

Step 4: Complete New Hire Reporting and Recordkeeping

• Report New Hires: Submit new hire information to the Delaware New Hire Reporting Program within 20 days of hire.
• Maintain Employment Records: Keep records of wages, hours worked, and other employment details to comply with Delaware and federal laws.

Step 5: Provide Required Employee Documentation

• Form I-9 Verification: Verify employment eligibility using Form I-9 and retain it for the required period.
• W-4 Form: Collect the federal W-4 form for tax withholding purposes.
• Employee Handbook and Policies: Share workplace policies, safety procedures, and any benefit information.

Additional Operational Considerations

• Insurance: Obtain workers’ compensation insurance as required in Delaware.
• Benefits Setup: Consider setting up employee benefits such as health insurance or retirement plans.
• Automation: Use HR and payroll automation tools to streamline hiring, onboarding, and compliance tasks.

Following these steps will help you hire your first employee in Delaware while maintaining compliance and operational efficiency.