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In late December 2019, the Delaware Division of Revenue published to its website a new Form DE W-4 that Delaware employees must use, starting in 2020, for state income tax withholding purposes. Previously, the state used the federal Form W-4. (Delaware Employer Guide, Section 16.)

There is no guidance available yet concerning the new Form DE W-4; however, a Division representative confirmed the following:

• Form DE W-4 is required of any employee who began work for the employer on or after January 1, 2020 and from any employee who, after January 1, 2020, wishes to change his or her Delaware withholding elections.
• Employers may continue to rely on federal Forms W-4 for Delaware income tax withholding purposes if they were submitted prior to January 1, 2020.
• Effective January 1, 2020, employees may no longer claim exemption from Delaware income tax withholding. (Telephone conversation, Delaware Division of Revenue, February 3, 2020.)

Employers continue to be required to submit copies of Form W-4 or Form DE W-4 within five working days, providing that either of the following is claimed by an employee:

1. The total of allowances claimed for Delaware Personal Income Tax purposes on the certificate is fourteen (14) or more allowances.
2. The certificate received prior to January 1, 2020 indicated that the employee claimed to be exempt from withholding of Delaware Income Tax and the employer reasonably expected the employee's wages to exceed $168.50 per week.

Copies of these exemption certificates must be mailed to: Assistant Director, Office of Personal Income Taxes, Division of Revenue, P.O. Box 2044, Wilmington, DE 19899–2044. (Delaware Employer Guide, Section 16; Del. Code Ann. 30 Section 1151.)

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