Delaware registration and tax info

You can add Business Compliance if all of these are true:

• You run payroll with Gusto. Business Compliance is not sold on its own.

• You're on the Solo, Simple, Plus, or Premium plan. It's included with Premium at no extra cost.

• Your business is a corporation or an LLC. Corporations include S corporations and nonprofit corporations. An LLC qualifies however it's taxed.

New sign-ups are not available for professional entities, including professional corporations and professional limited liability companies (PLLCs). If you already have a Business Compliance subscription as a professional entity, your coverage continues as it is.

Business Compliance is not available yet for sole proprietors, general partnerships, limited partnerships, or limited liability partnerships (LLPs). It's also not available for cannabis-related businesses, on any plan.

Not sure if you qualify? Chat with us before you sign up.

Business Compliance works state by state. Each state you add includes:

• Registered agent — we accept legal and government mail for your business in that state.

• Change of registered agent — we file the change so your mail comes to us.

• Foreign qualification — we register your business with the Secretary of State so you can legally work there.

• State tax registration — we register you with the state's tax agencies when you hire or start working there, including local tax agencies and Paid Family and Medical Leave (PFML) agencies wherever Gusto is able to register with them.

• Annual report filing — we file the yearly report that keeps your business in good standing.

• Government mail monitoring — we scan mail from state agencies into Gusto. Each notice comes with a plain-language summary of what it means and what to do next.

• Proactive alerts — we tell you about deadlines before they're due.

You also get a compliance concierge team, no matter how many states you cover.

Cost: $85 per state, per month, billed monthly. Adding a state commits you to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, vary by state and business type, and show on your invoice.

Local tax and PFML coverage follows what Gusto's state tax registration supports, and not every agency can be registered through Gusto. Delaware and Maine do not allow a third party to register for Paid Family and Medical Leave, so you'll register with those agencies yourself. If we cannot register one of your agencies, we'll show it on your registration page under what you'll complete on your own. See Let Gusto help you with state tax registration.

1. Sign in to Gusto.

2. Go to Taxes & Compliance.

3. Select Business compliance.

4. Answer the questions about your business and the states where you work.

5. Review the price and what's included, then confirm.

After your first state is set up, you'll see its registrations and anything left to do.

Add a state when your business expands

When you add an employee or work location in a new state, that state shows up under Your states as Setup in progress, with your next step. Steps often include telling us more about your business there and moving your registered agent to us.

Select Start on a task to finish it, or View state details to see everything for that state. When every step is done, the state changes to Active.

To be your registered agent in a state, we file a change of registered agent with that state.

When a state needs this, you'll see a task on that state's card under Your states. Select Start to begin.

Keep your current registered agent until we confirm the transfer is done. A gap in coverage can put your business out of good standing in that state.

Once a state is active, we take over the ongoing work. We review your government mail, track your deadlines, and give you a concierge team to ask about any of it.

Your Business compliance page also shows your Compliance documents and Tax account details for each state.

Go to Taxes & Compliance → Business compliance → Manage subscription.

• To stop coverage in one state, select Remove next to that state.

• To cancel Business Compliance, select Leave Business Compliance.

Each state you add runs for a 12-month term, and you're billed monthly over that term. If you want to remove a state or leave Business Compliance before that term is up, email your compliance concierge team at [email protected] first. They'll tell you what happens to the rest of the term.

If Business Compliance is included with your Premium plan, you'll see a note on this page.

• Legal and tax advice. We do not give legal or tax advice. For advice about your business, talk to a lawyer or an accountant.

• Payroll taxes. Gusto payroll already handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business.

• Forming a new business. We register an existing business in a new state. We do not form new businesses.

• Sales tax. We do not register you for sales tax or file sales tax returns.

• Professional and industry licenses. We do not get or renew licenses for your profession or industry, or handle their reporting.

• Reinstatements and reopened accounts. We do not reinstate a business with the Secretary of State or reopen closed payroll tax accounts.

• General mail. We monitor payroll and compliance notices from government agencies, not your other mail.

Q: Why does my business need to register in a state?

A: Once you have an employee, a location, or other business in a state, that state's rules apply to you. This includes registration, filings, taxes, and renewals. It's separate from registering to run payroll there.

Q: How is this different from the payroll taxes Gusto already handles?

A: Gusto payroll handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business, like Secretary of State registration, annual reports, and registered agent service.

Q: I'm already registered in my state. Do I still need this?

A: Registering is just the first step. Staying in good standing is ongoing. We keep you there by acting as your registered agent, watching your mail, filing your annual reports, and alerting you before deadlines.

Q: How much does Business Compliance cost?

A: $85 per state, per month, billed monthly. When you add a state, you are committing to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, and they vary by state and business type. One-time services are charged separately from your subscription. You'll see the price before you confirm.

Q: How do Business Compliance charges show up on my bill?

A: They appear on your regular Gusto invoice, not a separate bill. Your subscription, each one-time service you order, and state filing fees show up as their own charges, with the state named, so you can see what each one is for.

Q: I already paid for a one-time registration. What happens if I add Business Compliance?

A: Email your compliance concierge team at [email protected]. They'll review your account and share your options.

After registering, you'll receive your:

• Withholding account number

• UC Employer account number

• Unemployment tax rate

To register with the Delaware Division of Revenue:

1. Register with the Delaware Division of Revenue.

   • Most companies can register online, except construction companies — see the Special registration requirements section below.

2. Scroll down the page to the Registration icon and click Get Started.

   • For more information about the registration process, see Opening a Business in Delaware.

   • If you have questions about the application, call the agency at (302) 577-8779.

If you do not receive an account number or do not know your agency-assigned unemployment tax rate, call the Unemployment Insurance Employer Contributions Unit at (302) 761-8484.

If you do not have your assigned rate yet, enter the new employer rate for Delaware in Gusto in the meantime. Update the rate once you receive it.

Special registration requirements for construction companies

1. Construction companies must register by paper and supply proof of Workmen's Compensation insurance. See the Registration Information Fact Sheet for more information.

2. Complete Part A and Part B, which is required for all companies that must pay income tax withholding on behalf of their employees.

3. Complete Page 9.

4. Supply the additional information listed on Page 10.

5. Send the completed Form CRA (Combined Registration Application for State of Delaware Business License and/or Withholding Agent) by:

   • Fax: (302) 577-8203

   • Mail: Delaware Division of Revenue, c/o Withholding Tax Unit, 820 N. French St., Wilmington, DE 19801

Businesses operating in Wilmington, or that have an employee who lives or works in Wilmington, need a Wilmington Account Number to file the City's Earned Income Tax and Head Tax.

New employers in the City of Wilmington must register with the city by completing the Application for Earned Income Taxpayer Account and mailing it to the address on the form. You'll receive your account number:

• Within 5–10 business days when registering by mail

• On the same day if registering in person

If you already have a Wilmington Account Number, call the agency at (302) 576-2415 to confirm it.

If your business has an older six-digit number, add two zeros at the beginning when entering the number in Gusto.

Once you complete registration, take these steps:

• Give Gusto third-party access (TPA) so we can help manage your taxes with the agency.

• Enter your tax account information in Gusto once you add a valid Delaware work address for one or more employees.

Where to find your withholding account number

• Notices from the Delaware Division of Revenue, such as the Withholding Tax Return (Form W1)

If you cannot find your account number, contact the agency at (302) 577-8779.

Where to find your unemployment account number

• Notices from the Delaware Department of Labor, such as the Quarterly Tax Report or Notice of Assessment Rate

If you cannot find your account number, contact the agency at (302) 761-8482.

Where to find your unemployment tax rate

• Form UC-12 from the Delaware Department of Labor

If you cannot find your rate, contact the agency at (302) 761-8484.

If you do not have your assigned rate yet, enter the new employer rate for Delaware in Gusto in the meantime. Update the rate once you receive it.

See the Delaware paid family and medical leave (PFML) section for steps to find your account number.

Businesses operating in Wilmington, or that have an employee who lives or works in Wilmington, need a Wilmington Account Number to file the City's Earned Income Tax and Head Tax.

If you already have a Wilmington Account Number, call the agency at (302) 576-2415 to confirm it.

If your business has an older six-digit number, add two zeros at the beginning when entering the number in Gusto.

New employers in the City of Wilmington must register with the city by completing the Application for Earned Income Taxpayer Account and mailing it to the address on the form. You'll receive your account number:

• Within 5–10 business days when registering by mail

• On the same day if registering in person

Your responsibility depends on the number of employees you have:

• 0–9 employees: Employers do not need to provide parental leave, medical leave, or family caregiving leave.

• 10–24 employees:

  • Parental Leave is required. Employers pay 0.32% of employee wages.

  • Medical Leave and Family Caregiving Leave are optional.

  • Employers cannot cover 100% of employee PFML taxes. Consult a tax advisor.

• 25 or more employees:

  • Employers must provide:

    • Parental Leave: 0.32%

    • Medical Leave: 0.4%

    • Family Caregiving Leave: 0.08%

  • Employers cannot cover 100% of employee PFML taxes. Consult a tax advisor.

Gusto calculates which lines of PFML coverage your company needs to provide based on the number of employees you have working in Delaware, according to Gusto's records (employees you've added and paid through Gusto).

• Check the Register for Delaware PFML email Gusto sent to see which coverage applies to your company.

• Throughout each year, Gusto will calculate which lines of PFML coverage your company is required to provide based on employees working in Delaware:

  • If you reach 10 or more employees, Gusto will ask you to register for PFML and set up an account for Parental Leave.

  • If you reach 25 or more employees, Gusto will update your withholdings, payments, and filings to include Parental, Medical, and Family Caregiver Leaves, and will let you know your taxes will go up.

1. If you have not yet done so, register with Delaware One Stop.

2. Sign in to or create your myDelaware account.

3. Select the DOL LaborFirst Employer tile.

4. Complete the registration questionnaire for LaborFirst, providing your owner/operator details, qualifications, address, and similar information.

5. In the Paid Leave Enrollment section, select Register for Paid Leave.

   • Once registered, your PFML account number will be on your Employer Portal Home Screen.

6. Complete the registration questionnaire for PFML, providing information about private plans, enrollment in DE PFML, and similar details.

   • Only select the lines of coverage you're required to provide. Gusto does not yet support optional additional lines of coverage.

7. Review your registration summary, then select Next to submit your registration.

   • Save a copy of your account info, including your PFML Employer Account Number (listed as Name under Account Divisions).

8. Give Gusto access to your PFML and unemployment accounts by following the instructions in the Authorize Gusto with Delaware agencies section.

The full contribution amount is ultimately an employer's responsibility, but you can choose to have your employees help pay up to 50% of the tax.

You cannot start deductions in the middle of a quarter. Set it up before you submit your first payroll in a quarter for it to take effect ongoing.

1. Go to Taxes & compliance, then select Tax setup.

2. Find Delaware Tax Setup and select Manage taxes.

3. Next to Percent of PFML paid by employees, click Edit.

4. Make your selections and click Save.

Gusto will ask companies to either enter their PFML tax account info or set up an exemption.

1. If you're exempt from PFML or have an approved private plan, confirm with the state to avoid back taxes or penalties.

2. Once confirmed, set up the company-level exemption in Gusto.

Employers can file a waiver to let the Division of Paid Leave know which employees are:

• Temporary (working less than 12 months a year)

• Limited (working fewer than 25 hours per week)

Temporary and limited employees are not eligible for Delaware's PFML Program.

To file a waiver:

1. Submit a waiver through the LaborFirst portal. To get started:

   • Open the LaborFirst User Manual.

   • Scroll to page 48 of the downloaded PDF (or page 45 of the document itself).

   • Find the Waiver Form header and follow the instructions.

2. Once approved, no employer or employee contributions are required. Set up an employee-level exemption in Gusto (for both employee and employer Paid Leave taxes) to account for this in payroll.

3. On the add exemption page in Gusto, select My employee is exempt from paying this tax.

4. Choose the employee and tell us why they're exempt with a brief description.

5. For the question "Which tax is this employee exempt from paying?" choose both:

   • Delaware Paid Leave - Employee

   • Delaware Paid Leave - Employer

6. Enter the start date of the exemption, click the checkbox to acknowledge the statement, and click Save exemption.

Only the Account Administrator of your tax account can give Gusto access. If you have not yet done so, you'll need to register for a PFML account in myDelaware.

1. Sign in to your myDelaware account.

2. Select the DOL LaborFirst Employer tile.

3. In the hamburger menu on the top left, select Account Services, then select Add/Manage TPA Access.

4. On the Third-Party Administrators screen, select New to create a New Entity Relationship.

5. Enter the following info:

   • Third Party Administrator: Gusto

   • Access start date: Jan 1, 2025

   • Authorization type: Administrator

6. Select Save.

   • If the system does not let you add Gusto, the agency will need to add it for you. Email [email protected] with:

     • Your company name

     • TPA name: Gusto

     • Authorization type: Administrator

7. Once Gusto has access, let us know in your Gusto account:

   • On your Home page, click the to-do titled Give Gusto access to Delaware Paid Family and Medical Leave account.

   • Click the checkbox to let us know we have access.

   • Click Submit.