Delaware Provides Updates For Form W-2 and Form 1099

As of September 30th, Delaware has provided updates on its Frequently Asked Questions regarding Form W-2 and Form 1099. Among the FAQs listed, there are two specific changes employers should take note of:

• Delaware Form W-3 is now replaced by form WTH-REC. This form is required if Delaware withholding is reported; and
• Bulk submitters are required to submit form WTH-REC (W-3) electronically.

Forms may be submitted online or on paper, but note that magnetic media will no longer be accepted for Form W-2 and Form 1099. Form W-3 can be submitted online file upload, on paper, or portal manual entry. 

Delaware will also not be accepting consolidated withholding tax payments for more than one employer or payer. Now, withholding must be paid as shown on the Form W-2 or Form 1099-R issued to the employer or payer. Although multiple employers can be reported in one W-2 submission file, and various payers can be reported in one 1099.

Other information to note according to the FAQ:

• IRS Form 1099-NEC is supported;
• Form 4804 is no longer required for 1099 submissions;
• 1099 "State/Payer's state no." data should be entered in the Pub 1220 "B" record "Special Data Entries" area;
• EFW2 "RW" records should be included in W-2 submissions; and
• Employee SSNs should not be truncated on W-2 "Copy 1-For State, City, or Local Tax Department" or in the EFW2 "RS" record. All nine digits must be present.

Please visit the Delaware Frequently Asked Questions website page for more information regarding the updates to Form W-2 and Form 1099.