What do I need to know about state withholding tax?
Income earned within Delaware is subject to withholding tax for both residents and non-residents.
Income earned by Delaware residents outside of Delaware is subject to that jurisdiction’s withholding tax (if applicable); if no withholding tax exists in that jurisdiction the income is subject to Delaware withholding.
Employers engaged in business outside of Delaware, who employ Delaware residents who work in another state, are not required to withhold Delaware income tax on such employees but may do so according to the approved methods if both the employer and the employee elect to withhold Delaware Income Tax. You must first withhold the tax for the State in which the employee works, then you may withhold taxes for the State of Delaware at the option of the employee.
New employers are required to register for a withholding account. Click hereto register.
What forms do employees need to set up state withholding?