Employers will have to register with the Delaware Department of Labor and Division of unemployment. A lot of businesses will try to be exempt and hire “sub contractors” or “independent contractors” A big thing needed in an audit is that your “independent contractor” has a FEIN number from the IRS, has its own insurance, has a business office, has its own equipment and assets, and does other jobs that aren’t hired by you.
The department of Unemployment has offices at:
4425 North Market St.
Wilmington, DE 19802
1114 South Dupont Hwy STE 103
Dover, DE 19901
You register for a new account with form UC-1 to determine if you have a liability to pay. You’ll get an account number after filing the application in about 20 days.
There are a couple different tax rates once you’re registered with the Delaware Division of Unemployment Insurance:
New employer: This rate may not be the best. It is the average rate paid of all businesses in Delaware for the last 5 years.
Earned rate: This is YOUR two year average of how much unemployment your employees have collected. If they have not had much, you’ll get a better rate. If they have had a lot, your unemployment rate will go up. This is often referred to as a MOD rate, or experience rate, the same as your general liability insurance looks and figures out your exposure rate according to how much money they’ve spent on you.
Delinquent Rate: Employers that file their payments late get docked and bumped into a higher rate.