Make employment in Delaware easy. Let us handle payroll, benefits, taxes, compliance, and even stock options for your team in Delaware, all in one easy-to-use platform.
Despite its relatively small size, Delaware is a significant state for many US-based and global organisations.
Famous for its business-friendly tax and administration policies, the First State is the corporate home of many major players, providing a unique landscape for entrepreneurs and professionals. With its coastal charm, storied history, and close proximity to some of the US’s biggest cities, it's a highly sought-after destination for employees and employers alike.
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In Delaware, workers’ rights are protected by numerous employment and labour laws, at both the state and federal level. As a result, employees enjoy protection from discrimination based on age, religion, sexual orientation, gender, and race.
Here are the key things you need to know about hiring in Delaware.
Work and overtime laws in Delaware are laid out in the state’s labour and administrative codes.
Under state law, full-time employment is between 35 and 40 hours per week.
Under the federal Fair Labour Standards Act, non-exempt employees are entitled to overtime pay of 1.5x their regular pay rate if they work more than 40 hours in a week.
Employees are generally (but not always) exempt from overtime if they:
Earn more than the specified state or federal exemption threshold
Perform a role with duties that are
Work in a certified or licensed profession, such as law, accounting, architecture, or engineering
In Delaware, the salary threshold for exemption is currently $684 per week, which is the federal minimum.
Note that the federal salary threshold for exemption is currently being reviewed in the US.
The minimum state wage for private sector employees is currently $13.25 per hour, although this will rise to $15 in January 2025.
We can help you get your new employee started in Delaware fast. Note that our minimum onboarding time (MOT) is dependent upon registration with the local authorities, and begins after the employee has submitted all the required information on the Remote platform.
For non-citizens of the US, a work eligibility assessment may be required, and can add three extra days to the onboarding time. If a follow-up is needed, there may be additional delays.
Please note that payroll cut-off dates can impact the actual first day of employment. Remote’s payroll cut-off date is the 10th of the month, unless otherwise specified.
Under state law, employees must be paid at least once per month.
For Remote customers, employee payments are made twice per month in equal installments, payable in arrears. The first payment is made on the 15th of the month and the second payment is made on the final day of the month. If relevant, bonus payments, commissions, and expense reimbursements are included in the second payment of the cycle.
Remote can help you craft a competitive benefits package to attract and retain the best global talent. Our benefits experts understand the trends, requirements, and expectations of the Delaware labour market, allowing your employees to feel appreciated and thrive.
Our benefits packages in Delaware usually include some or all of the following:
Under the federal Affordable Care Act, organisations with a headcount of 50 or more must offer statutory health insurance to their full-time employees.
Many employers also offer some level of supplemental health insurance. While this can lead to a relative rise in employment costs, it’s an essential benefit that ensures your people have access to routine care and are covered in the event of an emergency.
Because Remote is the employer of record (EOR), it’s important for us to offer the same core benefits to all employees to ensure fair and non-discriminatory hiring practices. This protects both your business and ours.
Note that we do not add a markup on any benefits premiums or administration costs.
The state is currently in the process of mandating qualified savings plans for private sector employees.
Under this legislation, you will need to enrol your employees into the state-sponsored Delaware EARNS Program (or another recognized retirement plan).
Note that this will only apply if your business:
This legislation is set to become active in 2025.
Delaware, like many other countries, treats self-employed individuals or contractors and full-time employees differently. Misclassification of contractors in Delaware may lead to fines and penalties for the offending company.
Employment taxes and statutory fees affect both your payroll and your employees' paychecks in Delaware. Note that your employees may be liable for additional local taxes.
Employer taxes
0%
Federal unemployment insurance tax (FUTA) (charged on the first $7,000 an employee earns per year)
0.0% to 5%
State unemployment insurance tax (SUTA)
0.0%
FICA (Social security)
0.00%
FICA (Medicare)
Employee taxes
0% to 37%
Federal income tax
0.0% to 6.6%
State income tax
0.0%
FICA (Social security)
0.00%
FICA (Medicare)
In Delaware, there is no state or federal law that requires employers to provide paid or unpaid vacation leave to their employees. However, many employers offer 10 days of paid leave after the first year of employment.
In Delaware, there is currently no state or federal law that requires employers to provide paid sick leave to their employees, although some organisations do. However, the state’s Healthy Delaware Families Act (HDFA) was passed in 2022 and will be implemented in 2025. Under this law, employees will be entitled to up to 12 weeks’ paid leave for medical and family reasons. Can an employer deny sick time in Delaware? Under the federal Family and Medical Leave Act (FMLA), eligible employees are entitled to up to 12 weeks of unpaid sick leave per year, provided they: Have worked for the same employer for at least 12 months Work in a location where at least 50 people are employed by the company within a 75-mile radius
Under the FMLA, employees are entitled to up to 12 weeks of unpaid maternity or paternity leave. Some organisations opt to pay a reduced salary during this period. Note that, from January 2025, employees will be entitled to paid parental leave under the HDFA.
Employers are not legally required to provide bereavement leave to their employees, although most organisations offer unpaid leave.
Employees must report for jury duty if summoned (unless exempt). Jurors are typically “on call” for two weeks. Do employers have to pay for jury duty in Delaware? No. Private sector employers are not required to pay employees on jury service, but they must provide unpaid leave, and cannot penalize or terminate an employee on jury duty. Some employers provide paid leave.
Like nearly all US states, Delaware is an “at-will” state. This means both employers and employees can end the employment relationship without reason, provided it is legal.
Remote’s legal experts can help you navigate terminations to ensure employees are only let go fairly, negating any potential legal complications.
Employers and employees are not required to provide notice of termination, unless otherwise stated in the employment contract.
Despite this, it's usually customary for employees to provide two weeks' notice when leaving an organisation.
Employers are not legally required to provide severance pay (unless it is stipulated in the employee's contract or in the company policy).
Employers are also not required to pay any accrued but unused vacation time, unless stipulated in the employment agreement.
There is no requirement to provide a probation period for employees, although many companies implement internal probation policies. These policies typically involve a formal performance evaluation after a specified period, such as three or six months.
Delaware has a business-friendly environment with a strong presence in finance, healthcare, and manufacturing industries. With no state sales tax and a favorable corporate tax structure, the state attracts many businesses. However, employers must navigate payroll regulations, including minimum wage laws, tax requirements, and unemployment insurance contributions.
Employers in Delaware must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:
Minimum Wage: As of 2024, Delaware’s minimum wage is $13.25 per hour, with scheduled increases reaching $15.00 per hour by 2025.
Overtime Rules:
Delaware has a progressive income tax system, with rates ranging from 2.2% to 6.6%, depending on income levels.
Employers must withhold state income tax and remit it to the Delaware Division of Revenue.
Employers must contribute to Delaware’s Unemployment Insurance (UI) program, managed by the Delaware Department of Labour.
The wage base for UI tax in Delaware is $14,500.
Hiring contractors in Delaware can be a strategic and cost-effective way for businesses to complete projects without the obligations of hiring full-time employees. Whether you are engaging independent contractors for specialized services or bringing in subcontractors for labour-intensive projects, understanding Delaware’s laws and federal regulations is essential.
Remote helps businesses stay compliant when hiring contractors globally with these key features:
Global compliance support : Ensures adherence to labour laws in 200+ countries with localized contracts and proper documentation.
Misclassification protection : Includes built-in compliance checks and seamless contractor-to-employee conversion.
Centralized documentation : Maintains essential records for audits and automates tax filings (e.g., 1099s for U.S. contractors).
Legal expertise : Provides guidance on complex local labour laws, simplifying international hiring.
Remote’s streamlined approach minimizes compliance risks and simplifies contractor management for businesses.
Remote simplifies contractor payments with:
Our employer of record (EOR) service enables you to hire, manage, and pay top talent in Delaware with speed and simplicity.
Remote’s EOR allows your company to legally hire employees in any country or US state — including Delaware — wherever your business is based, without having to set up a local legal entity.
On paper, Remote is the official employer, and we handle compliance, payroll, benefits (including equity), and other HR processes — but you maintain full control over the hire’s day-to-day management and work responsibilities. Learn more.
An EOR may be ideal if your company:
Needs to hire employees in Delaware but doesn’t want to establish a legal entity there
Is testing local markets before committing to a full business expansion
Wants to ensure full compliance with federal, state, and local employment laws and tax requirements
Needs a fast, cost-effective way to onboard employees in the state
Needs a temporary hiring solution before establishing a legal entity
Delaware is known for its business-friendly legal framework, favorable corporate tax climate, and proximity to major east coast markets, making it a prime location for growth. Whether you’re a startup expanding across the mid-Atlantic or an SMB ready to build a distributed team, managing HR, payroll, and compliance across state lines can quickly become overwhelming. That’s where a professional employer organisation (PEO) can help.
A professional employer organisation (PEO) is a third-party provider that helps businesses handle key HR functions. These typically include payroll, benefits administration, tax filings, and employment law compliance. With a PEO, your business enters into a co-employment relationship, meaning the PEO takes on the administrative and legal tasks related to employment — while you retain full control over day-to-day management of your team.
For small to midsize companies, a PEO can provide enterprise-grade HR services without the cost or complexity of building an in-house department.
As mentioned, a PEO operates through a co-employment model, which requires your company to be registered and operating in Delaware.
In contrast, an employer of record (EOR) acts as the legal employer on your behalf. EORs are typically used for hiring in states (or countries) where your business doesn’t yet have a legal presence. If you’re hiring your first employee in Delaware and don’t yet have an entity or tax setup, an EOR may be a better fit initially.
Working with a PEO in Delaware offers several advantages, such as:
NZ$47
Per employee/month
Robust, transparent global payroll
Straightforward self-service platform
Personalised assistance from a team of dedicated specialists
Comply with local payroll regulations in every country
Integrated management of employee benefits
Comes with HR Core as standard
NZ$48
Per contractor, per month
Pay only for contractors you actively engage with
Work with contractors based overseas
Draft, revise, and sign customised, localised contracts
Approve contractor invoices in a single click or set them to auto-pay
Clear payments with full visibility
HR Core included as standard
NZ$1,155
Per employee/month
Hire staff overseas without establishing a local entity in 90+ countries
Onboard new hires with a dedicated specialist
Local payroll processed and paid on time, every time
Built-in compliance protections
Localised, flexible and competitive benefits
In-house experts dedicated to local support
HR Essentials included as standard
Under federal law, employers must grant unpaid leave to employees who are members of the military or the National Guard for military duty or training. These employees have the right to take time off for their military obligations, and employers are prohibited from discriminating against them based on their military service.
UI tax rates vary based on an employer’s experience rating and range from 0.3% to 8.2%.
Delaware law requires all employers to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
Employers must register for a Delaware Withholding Tax Account Number with the Delaware Division of Revenue.
State withholding tax returns must be filed monthly, quarterly, or annually, depending on employer classification.
UI tax reports must be submitted quarterly to the Delaware Department of Labour.
Payroll tax payments can be made electronically through Delaware’s Revenue Online Portal.
State Minimum Wage Adjustments: Delaware has scheduled minimum wage increases through 2025.
Final Paycheck Rules:
New Hire Reporting: Employers must report new hires to the Delaware State Directory of New Hires within 20 days.
Paid Sick Leave: Delaware does not have a statewide paid sick leave law, but employers may provide benefits voluntarily.
Payroll Recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
Right-to-Work Status: Delaware is not a right-to-work state, meaning employees can be required to join or pay fees to a union if applicable.
Managing payroll in Delaware requires careful attention to state-specific regulations, including minimum wage laws, paid family leave, and payroll tax requirements. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.
To see just how easy global payroll can be, book a demo today.
Global coverage : Payments in 200+ countries, multiple payment methods, and currency flexibility.
Cost and compliance : Fair price guarantee (pay only for active contractors), built-in compliance with regional regulations, and localized contracts.
Learn more about how Remote simplifies contractor management in Delaware — get started for free today.
Key benefits of hiring through our EOR in Delaware include:
Faster market entry . You can hire talent quickly, without having to wait months to establish a local entity.
Full compliance with local employment laws . Avoid the legal risks associated with non-compliance and misclassification.
Simplified payroll management . We automate payroll tax calculations and ensure you are fully compliant with all federal, state, and local withholding obligations, even when laws change.
Lower costs. Setting up a legal entity in Delaware can be costly and time-consuming. An EOR eliminates the need for entity registration, reducing overhead expenses.
Fewer resources required. With HR, payroll, and compliance managed by the EOR, your company can concentrate on scaling operations and assigning your resources elsewhere.
It’s also crucial to note that, at Remote, we own all our own legal entities. As a result, we don’t need to rely on third parties, which can incur delays and extra costs, and result in a negative employee experience. All our EOR services — including the dedicated support of our local specialists — are provided in-house.
To learn more — and to see our EOR platform in action — book a demo with one of our friendly experts today.
Compliance with state employment laws and tax regulations
Access to affordable, competitive employee benefits packages
Reduced administrative burden around payroll and HR documentation
Simplified onboarding, performance tracking, and employee offboarding
Minimized risk around misclassification, workplace policies, and employee relations
Delaware employers must also navigate unique state laws, including workers’ compensation requirements and specific tax obligations. Remote’s PEO helps you stay compliant while keeping your HR operations lean and efficient.
To partner with a PEO in Delaware, your business must have a registered legal entity in the state. Once that’s in place, our PEO service takes on your HR administration tasks such as running payroll, administering benefits, and filing local and federal taxes.
Remote’s PEO services integrate seamlessly into your operations, whether you're hiring your fifth employee or your 50th. You maintain full control over how your team works while we handle the operational complexities behind the scenes.
If your company is legally established in Delaware and you're looking for a scalable way to manage HR, a PEO is an ideal solution. You’ll gain access to expert support, reduce your compliance risk, and free up time to focus on growth.
If you're just entering Delaware and don’t yet have a legal entity, consider starting with an EOR and transitioning to a PEO as you scale.
Remote makes it easy to manage HR, payroll, and compliance across all 50 states. Learn more about our PEO services and how we can support your team’s growth in Delaware.