Where to pay Delaware unemployment tax online

Delaware employers pay unemployment tax through the Delaware Division of Unemployment Insurance (DUI) online portal, which is separate from federal unemployment tax (FUTA). The state portal is called the Employer Tax Account System (ETAS), and it is the only place where you remit Delaware state unemployment insurance tax.

You access ETAS by going to the Division of Unemployment Insurance website and logging in with your Delaware employer account number and password. If you do not yet have login credentials, you must first register your business with the Delaware Division of Revenue and obtain a Delaware employer account number. This number is issued when you register to do business in Delaware, not when you register for unemployment insurance specifically.

Federal unemployment tax (FUTA) is paid separately through the IRS, using Form 940 filed annually with your federal tax return. This article covers Delaware state unemployment tax only.

Key Takeaways

  • Delaware state unemployment tax is paid through ETAS, the state's online employer portal, using your Delaware employer account number and password.
  • Payments are due quarterly, with deadlines tied to your payroll periods: January 31, April 30, July 31, and October 31 for most employers.
  • You must report both the total wages paid and the amount of tax owed each quarter, even if you owe zero tax.
  • If you miss a payment deadline, penalties and interest accrue immediately, so setting a calendar reminder is essential.
  • Federal unemployment tax (FUTA) is filed separately with the IRS on Form 940 and is not paid through the Delaware portal.

Quarterly payment deadlines and how they work

Delaware unemployment tax is due quarterly, not monthly or annually. The four payment deadlines are January 31, April 30, July 31, and October 31 each year. These dates apply to most employers; some employers on different payroll cycles may have different reporting periods, but the state will specify this when you register.

Each quarter, you log into ETAS, enter the total wages you paid to all employees during that quarter, and the system calculates the tax owed based on your current tax rate. Your tax rate depends on your industry, your history of employee claims, and your account balance. New employers typically start at a standard rate set by the state.

You must file and pay even if you owe zero tax — skipping a quarter because you had no payroll or no tax liability does not exempt you from filing. The state uses these reports to track your account status and maintain your employer record.

What information you need to provide in ETAS

When you log into ETAS to file a quarterly return, you will enter the following information: your Delaware employer account number (pre-filled), the quarter and year, total gross wages paid to all employees, and the number of employees on your payroll during that quarter. The system then calculates the tax amount owed based on your assigned tax rate.

You do not need to list individual employee names or Social Security numbers in ETAS — that information is reported separately on quarterly wage reports (Form DE 9). ETAS is for the employer-level tax calculation only. If you have multiple locations or separate business entities, each must have its own Delaware employer account number and file separately.

Keep payroll records and wage documentation on file for at least three years. The Division of Unemployment Insurance may request these records to verify the accuracy of your quarterly filings.

Payment methods and processing time

ETAS accepts payment by electronic funds withdrawal (EFW), which is the most common method for online payment. You provide your bank account information (routing number and account number) and authorize the state to debit the amount owed on or before the deadline. Processing typically takes one to two business days, so submit your payment at least two business days before the deadline to ensure it posts on time.

Some employers may also pay by check or money order mailed to the Division of Unemployment Insurance, but this method is slower and carries higher risk of late payment. If you choose to mail a check, it must be postmarked by the deadline date, not received by the deadline. Online payment through ETAS is faster and provides immediate confirmation.

Do not send payment to the IRS or to your federal tax account — Delaware state unemployment tax and federal unemployment tax are two separate obligations paid to two separate agencies.

What happens if you miss a payment deadline

If your payment is not received by the deadline, the Division of Unemployment Insurance assesses a penalty and interest on the unpaid balance. The penalty is typically a percentage of the unpaid tax, and interest accrues daily from the due date forward. Both penalties and interest are added to your account and must be paid along with the original tax.

Repeated late payments or non-payment can result in the state taking collection action, including wage garnishment, bank levies, or referral to a collection agency. Your business may also lose the ability to renew licenses or permits in Delaware until the debt is resolved.

If you know you will not be able to pay by the deadline, contact the Division of Unemployment Insurance before the due date to discuss payment arrangements or a deferment. Proactive communication is better than ignoring the bill.

Logging in and troubleshooting access issues

To log into ETAS, visit the Delaware Division of Unemployment Insurance website and select the employer login option. You will need your Delaware employer account number (a nine-digit number issued when you registered your business) and your password. If you have never logged in before, you may need to set up your password using a registration code sent to your business address on file.

If you forget your password, use the "Forgot Password" link on the login page to reset it. You will be asked to verify your identity using your account number and other business information. If you cannot remember your account number, contact the Division of Unemployment Insurance directly — they can look it up using your business name and federal Employer Identification Number (EIN).

If you are unable to access ETAS or encounter an error message, the Division of Unemployment Insurance offers phone support during business hours. Have your account number and EIN ready when you call.

Reconciling your account and reviewing payment history

ETAS maintains a running record of all quarterly filings and payments you have submitted. After each payment posts, log back into your account to confirm the payment was received and applied to the correct quarter. The system shows the date received, the amount, and the current balance owed or credit balance on your account.

At the end of each year, the Division of Unemployment Insurance sends employers a Employer Contribution Statement (also called a tax rate notice) showing the total wages reported, total tax paid, and your tax rate for the coming year. Review this statement carefully and compare it to your payroll records. If you find a discrepancy, contact the Division of Unemployment Insurance with documentation of the correct wages.

If you have overpaid or have a credit balance, you can request a refund or apply the credit to future quarters. Credits do not automatically roll forward, so you must request the adjustment in writing if you want it applied.

Frequently Asked Questions

Can I pay Delaware unemployment tax through my payroll service or accountant?

Yes. Many payroll services and accounting firms are authorized to file and pay on behalf of employers through ETAS. You will need to grant them power of attorney or authorization to access your account. Verify with your service provider that they handle Delaware unemployment tax and confirm the fees they charge for this service.

What is the difference between Delaware unemployment tax and federal unemployment tax?

Delaware unemployment tax (state) is paid through ETAS to the Division of Unemployment Insurance and funds the state unemployment insurance program. Federal unemployment tax (FUTA) is paid to the IRS on Form 940 and funds the federal unemployment system. Both are required, and both are calculated based on your payroll, but they are filed and paid separately to different agencies.

Do I have to file a quarterly return if I had no employees that quarter?

Yes. Even if you had no payroll or no employees during a quarter, you must still file a return showing zero wages and zero tax owed. Failing to file is treated as a missed deadline and can result in penalties. Filing takes only a few minutes and keeps your account in good standing.

What if my business closes or I stop paying employees?

Contact the Division of Unemployment Insurance to notify them that your business is closing or that you no longer have employees. They will provide instructions for filing a final return and closing your account. You must still file returns for any quarter in which you had payroll, even if the business has since closed.

Can I pay multiple quarters at once through ETAS?

ETAS is designed for quarterly filing and payment. You file and pay one quarter at a time using the deadline dates specified. If you owe back taxes from previous quarters, contact the Division of Unemployment Insurance to arrange payment or a payment plan for the arrears.