Delaware has implemented a paid family and medical leave benefit plan effective January 1, 2025. Delaware manages a state plan as the default option for all employers. However, an employer can adopt a private plan given it has benefits greater than or equal to the state plan, subject to the state’s approval.
As of January 1, 2025, the plan is funded by a payroll tax paid by both employees and employers and assessed on wages earned at a primary work location in Delaware. The total tax amount, both employee and employer contributions combined, is 0.8% of U.S. Social Security taxable wages.
What should you do as a Delaware Employer?
- Please reach out to the HCM Service Team with the plan your company plans to adopt, state or private. Payroll tax deductions will begin on 01/01/2025 with the defaulted state plan leave tax codes, if not adjusted for employees with a primary work location in Delaware.
- DEFMLEE – DE State Fam & Med Leave EE
- DEFMLER – DE State Fam & Med Leave ER
- Delaware Paid Leave is not included in the HCM Tax Team’s reporting on your behalf for the state – please prepare to report any withholdings to the state.
- DEFMLEE and DEPFMLEE have a system default rate of 50% (0.5) which makes the employees pay 50% of the total tax. (The total tax is the 0.8% of Social Security taxable wages as explained above.)
- The system default rate can be overridden for employees, but only with a rate less than 50% because the employee is not allowed to pay more than 50% of the total tax. If your company plans to pay a larger percentage on behalf of employees, please reach out to the HCM Service Team to adjust the rate.
For additional information, please see the linked Delaware Department of Labor website – here.
