What tax forms are required for new hires?

Tax Forms Required for New Hires in Delaware

When hiring employees in Delaware, it is essential to collect and file specific tax forms to ensure compliance with federal and state regulations. Proper handling of these forms supports accurate payroll processing, tax withholding, and reporting.

Federal Tax Forms

• Form W-4 (Employee's Withholding Certificate): Every new employee must complete a W-4 form to determine federal income tax withholding. Employers use this information to calculate the correct amount of tax to withhold from wages.
• Form I-9 (Employment Eligibility Verification): Required to verify the employee’s identity and authorization to work in the United States. Employers must retain this form and make it available for inspection.

Delaware State Tax Forms

• Delaware W-4 (Employee's Withholding Allowance Certificate): Delaware requires a state-specific withholding form to calculate state income tax withholding accurately. New hires should complete this form unless they opt to have no state tax withheld.
• New Hire Reporting: Employers must report newly hired employees to the Delaware New Hire Reporting Program within 20 days of their hire date. This supports child support enforcement and other state programs.

Operational Considerations

• Recordkeeping: Maintain copies of all tax forms securely for at least four years to comply with IRS and Delaware state requirements.
• Payroll Setup: Use the information from W-4 and Delaware W-4 forms to configure payroll systems for accurate withholding of federal and state taxes.
• Automation: Consider using electronic onboarding tools to collect and store tax forms efficiently and reduce errors.
• Compliance: Regularly review federal and Delaware tax withholding tables and update payroll settings accordingly.

As of 2026, these forms and reporting requirements are standard for Delaware employers hiring new employees. Staying current with any updates from the Delaware Division of Revenue or the IRS is important for ongoing compliance.