District of Columbia New Employer Information
Congratulations on your decision to become a new employer in Washington D.C.! You will need a few things in place before you run your first payroll.
For help registering your business in D.C., check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
- To learn more, read our article, “What Is EFTPS?”
District of Columbia Tax Accounts:
- Register online with the DOES Employer Registration Portal for your unemployment insurance (UI) and paid family leave (PFL) tax account.
- New employers are assigned a standard tax rate equal to the average rate of contributions paid by all employers during the preceding year, or 2.7%, whichever is higher. For more information, visit the Department of Employment Services.
- It will be a 4-5 year period before your business is assigned a new contribution rate based on experience and type of business.
- To learn more about SUTA tax, please read our article, “What Is SUTA Tax?”
Mandated Insurance:
- You must have workers’ comp insurance if you have at least 1 employee in Washington D.C. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Washington D.C. here.
- Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.
Setting Up Your New Employee:
- Have your new employee fill out Form D-4 District of Columbia Employee Withholding Allowance Certificate for D.C. income tax withholding.
Once you have all the necessary information, you will be able to set up your payroll for your business.
Federal law requires you to keep employee payroll records for a minimum of three years. To learn more, read our help article, “What Employers Should Know About Employee Payroll Records”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.
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