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Payroll and Benefits Guide United States – Delaware

Last updated: Mar 22, 2023

Currency
United States Dollar (USD)
Employer Taxes
9.85% – 23.15%
Payroll Frequency
Monthly
Employee Costs
0%
Capital
Dover
Date Format
mm/dd/yyyy
Fiscal Year
1 January- 31 December

Contributions

Employer

Employer Payroll Contributions

0.30% – 8.20% (Maximum taxable wages is 18,500 USD) (Includes 0.2% supplemental assessment rate) Unemployment Insurance (State)
1.30% (Maximum taxable wages is 18,500 USD) (Includes 0.2% supplemental assessment rate) Unemployment- New Employer (State)
6.20% (Maximum taxable wages is 160,200.00  USD) FICA Social Security (Federal)
1.45% FICA Medicare (Federal)
0.60% – 6.00% (Maximum taxable wages is 7,000 USD) FUTA (Federal Unemployment Tax Act) The FUTA tax rate is 6.0% with a taxable wage base of 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to 0.6%.
9.85% – 23.15% Total Employment Cost

Employee

Employee Payroll Contributions

6.20% (Maximum taxable wages is 160,200.00 USD) FICA Social Security (Federal)
1.45% FICA Medicare (Federal)
0.90% Additional tax on earnings over 200,000 USD (High-income earners also pay an additional 0.9 percent in Medicare taxes)
7.65%-8.55% Total Employee Cost

Employee

Employee Income Tax

State Employee Income Tax
State Tax – Single
0.00% 0 USD to 2,000 USD
2.20% 2,000 USD to 5,000 USD
3.90% 5,000 USD to 10,000 USD
4.80% 10,000 USD to 20,000 USD
5.20% 20,000 USD to 25,000 USD
5.55% 25,000 USD to 60,000 USD
6.60% over 60,000 USD
Married taxpayers filing jointly
0.00% 0 USD to 2,000 USD
2.20% 2,000 USD to 5,000 USD
3.90% 5,000 USD to 10,000 USD
4.80% 10,000 USD to 20,000 USD
5.20% 20,000 USD to 25,000 USD
5.55% 25,000 USD to 60,000 USD
6.60% over 60,000 USD
Standard Deduction and Personal Exemption
Single 3,250 USD
couple /Married Filing Jointly 6,500 USD
Personal exemption
Single 110 USD (credit)
Couple /Married Filing Jointly 220 USD (credit)
Dependent 110 USD (credit)
Federal Employee Income Tax  
Federal Tax – Singles
10.00% Up to 11,000 USD
12.00% 11,001 USD to 44,725 USD
22.00% 44,726 USD to 95,375 USD
24.00% 95,376 USD to 182,100 USD
32.00% 182,101 USD to 231.250 USD
35.00% 231,251 USD to 578,125 USD
37.00% 578,126 USD or more
Federal Tax – Married, filing jointly
10.00% Up to 22,000 USD
12.00% 22,001 USD to 89,450 USD
22.00% 89,451 USD to 190,750 USD
24.00% 190,751 USD to 364,200 USD
32.00% 364,201 USD to 462,500 USD
35.00% 462,501 USD to 693,750 USD
37.00% 693,751 USD or more
Federal Tax – Heads of Households
10.00% Up to 15,700 USD
12.00% 15,701 USD to 59,850 USD
22.00% 59,851 USD to 95,350 USD
24.00% 95,351 USD to 182,100 USD
32.00% 182,101 USD to 231,250 USD
35.00% 231,251 USD to 578,100 USD
37.00% 578,101 USD or more
Standard Deduction and Personal Exemption
13,850.00 USD Single
27,700.00 USD Married Filing Jointly
20,800.00 USD Head of Household

Minimum Wage

General

The Delaware State Minimum Wage Law sets its minimum wage at 11.75 USD.

Payroll

Payroll Cycle

In general, employees in Delaware are paid monthly, with the payment due within seven days of the end of the pay period.

13th Salary

There is no legislation for 13th-month payments in Delaware.

Working Hours

General

In Delaware, the working week is a maximum of 40 hours per week, 8 hours per day.

Overtime

Delaware adheres to the Fair Labour Standards Act (FLSA), and work in excess of 40 hours per week is considered overtime and paid at the rate of 150% of the regular pay. If employees are scheduled to work on weekends or rest days, no additional payment is required.

However, should an employer request an employee to work in exceptional circumstances on these days, then overtime is paid at the rate of 150% of the regular pay.

Working Week

Monday-Friday

Leave

Paid Time Off

Delaware does not have any state laws that govern paid time off. However, it is common for employers to decide whether to offer paid or unpaid vacation leave. This must comply with employment law and must be stipulated in the collective bargaining agreements.

Public Holidays

There are 12 public holidays in Delaware. Public holidays are not mandatory as paid days off, however, it is very common to allow workers to take federal holidays as paid days off.

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).

The Delaware Pregnancy Discrimination and Accommodation in the Workplace further enforces the protection of an employee and addresses the adaptations which should be made within the workplace. This act is applicable for employers with four or more employees.

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

FMLA eligible employees are entitled to:

  • 12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • Care for the employee’s spouse, child, or parent who has a severe health condition.
  • Leave in the event of a serious health condition that makes the employee unable to perform the essential functions of their job.
  • Any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

OR

  • Twenty-six working weeks of leave during a single one-year period to care for a covered service member with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

Maternity Leave

See Sick Leave above.

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

Paternity Leave

See Sick Leave above.

Parental Leave

See Sick Leave above.

Other Leave

Jury Duty – Delaware law states that all employers must provide their full-time employees job-protected but unpaid time off from work to perform jury duty or as a witness in a case, responding to a subpoena: or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.

In addition to the federal law USERRA, Delaware law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the Public Health Service, and any other category of persons designated by the president in a time of war or emergency.

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship, and employment is stipulated “at will.”

This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds. In such cases, the parties negotiate the foundations for a “just cause” termination case-by-case.

Notice Period

In Delaware, most employees are employed “at-will,” and either party can terminate the employment relationship without notice. In Delaware, pay out of unused vacation time is not required by law.

Still, generally, employers will pay an employee for unused vacation days, provided the employee gave some advanced notice of resignation; there is no official notice period. Still, in general practice, two weeks’ notice is a minimum requirement.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Severance Pay

Except as otherwise provided in an employment contract or collective bargaining agreement, employers need not make severance payments to terminated employees. Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed by both parties. Many employers choose to offer severance payment linked to the employee’s length of service.

Probation Period

No legal provision governs a formal “trial/probation period.” However, it is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/ United States Citizenship and Immigration Services (“USCIS”) for an employment visa on behalf of the prospective employee.

If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).  To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request; the types of visas include:

  • H-1B – for applicants with a college degree hired to do specialised work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialised knowledge.
  • 0 – for people with extraordinary ability in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1 – Highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
  • E-2 – for those with advanced degrees or exceptional ability.
  • E-3 – for skilled workers and professionals, as well as unskilled workers.
  • E-4 – Members of certain immigrant groups.
  • E-5 – Immigrant investors in US companies (substantial investment)

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States.

The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorised to work in the United States.

VAT

General

Delaware has a 0.00% standard GST Rate.

Stay up to date on payroll & employment law changes

Version History

February 16, 2022
Payroll contributions and personal income tax rates have been updated.
February 7, 2022
The minimum wage has increased to 10.50 USD per hour.
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Payroll and Benefits Guide in United States – Delaware

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Payroll and Benefits Guide
in United States – Delaware

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

United States – Delaware 2023
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ICS
Day Date Holiday Notes
Sunday Jan-1 New Year's Day
Monday Jan-16 Martin Luther King Day
Monday Feb-20 Presidents Day
Monday May-29 Memorial Day
Monday Jun-19 Juneteenth Independence Day
Tuesday Jul-4 Independence Day July
Monday Sep-4 Labor Day
Monday Oct-9 Columbus Day
Friday Nov-10 Veteran's Day
Thursday Nov-23 Thanksgiving Day
Monday Dec-25 Christmas Day