Set up Delaware Paid Family and Medical Leave

provisions of the DE PFML Act. The state refers to this as the "threshold number" and is set for a lookback period of 12 months. 

• Since contributions begin on January 1, 2025, the initial 12-month lookback period to determine the employer’s employee threshold number will be January 1, 2024 - December 31, 2024.

DE-covered individuals are those employees subject to the DE PFML Act. They are those who work in the state of DE, or who have been reclassified as a DE worker for DE PFML, who work on a permanent basis meeting or are reasonably expected to be employed for 12 months of employment in the state and worked 1,250 hours during the previous 12-month period.

Within 30 days of reaching a threshold of 10 or 25, an employer must provide the required coverages.

• An employee must work primarily (60% of their time) in Delaware.
• Worked for their employer for at least 12 months.
• Clocked at least 1,250 hours (about 25 hours a week) in the most recent 12 months. 
• Part-time employees working in the state and/or that have been reclassified as DE employees for PFML may be a covered individual under the DE PFML Act if they have worked for the employer for 12 months and have worked 1,250 hours in the past 12 months. 
• Seasonal and/or temporary employees aren't expected to be covered until or unless they have met the 12-month/1,250 hour requirement. Then, they may be candidates for the DE PFML waiver.

This information and more can be found in the agency’s Program Overview FAQs.

Step 1: Add your policy 

1. Go to Settings ⚙, and select Payroll settings.
2. From Delaware Tax, select Edit ✎.
3. Under Delaware Paid Family and Medical Leave Tax (PFML) Leave select Start.
4. Select your Delaware full time employee count
5. Select Define Rates.
6. Enter your Policy Name.
7. Select the effective start date of the policy. 
8. Enter the percentages for you and your employees.
9. Select Save.
10. Select Save, then Done.

Step 2: Add the policy to your employees

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Tax withholding, select Edit.
4. From State withholding, select + Assign policy.
5. Select the policy name you set up in Step 1.
6. Select Save, then Done.
7. Repeat steps 2-6 for all other Delaware employees.

If you’ve run any payrolls before setting up this rate, don’t worry. We’ll automatically catch you up when you run your next payroll.

Step 1: Get the latest payroll update 

Download and install the latest payroll update. 

The Add Item Wizard for the new DE PFML pay items for Parental, Family, and Medical (Employer and Employee) will launch when you pay your employees or add any new Delaware employees.  

Note: Although new DE PFML items will appear on paychecks in 2024, no tax will be deducted until January 1, 2025.

Important: The Add Item Wizard will prompt you to enter the employer and employee tax rates. Potential scenarios to be aware of:

• If as the employer, you are funding the program entirely, enter 100% and 0% for your employees 
• If you are choosing to split the cost with your employees, you will need to enter 1-50% for their portion of the tax. 
• If exempt from any portion of the program (due to employee count or private plan), you can enter a 0%. 

You will need to go through all screens within the Add Item Wizard to ensure accurate tax calculations.

Step 2: If needed -  Edit the new DE PFML tax items to subject employees 

1. Go to Employees and select Employee Center.
2. Double-click your employee.
3. Select Payroll Info.
4. Click on Taxes, then the Other tab. Look for and review the new DE PFML pay items. 

Edit your policy

1. Go to Settings ⚙, and select Payroll settings.
2. From Delaware tax, select Edit ✎.
3. Under Delaware Paid Family and Medical Leave Tax (PFML), select Edit next to the policy you want to edit. 
4. Edit the rate, then select Save.
5. Select Save, then Done.

Please note: If updating a policy to a retroactive date, past employee withholding cannot be adjusted. 

Remove policy from your employee

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Tax withholding, select Edit.
4. From State withholding, look for the policy then select Unassign.
5. Select Unassign to confirm action.

Enter or change the tax rate for each employee

1. Go to Employees, and select Employee Center.
2. Double-click the employee's name to open the Edit Employee window.
3. Select the Payroll Info tab and select Taxes.
4. In the Taxes screen that pops up, select the Other tab.
5. Make sure the Delaware Paid Family Leave items are there.
6. Select the tax to change the rate.
7. Select OK, then Save & Close.
8. Repeat steps 2 - 7 for each covered employee.

Delete DE PFML item from your employee’s profile

1. Go to Employees, and select Employee Center.
2. Double-click your employee’s name.
3. Select Payroll Info, then Taxes.
4. Select the Other tab.
5. Select the DE Paid Family Leave items you want to delete (Family Caregiving, Medical, and Parental). You will need to delete both employee and employer portions to completely remove the tax.
6. Select OK, then Save & Close.

1. Go to Payroll, then Employees.
2. Select your employee.
3. From Tax withholding, select Edit.
4. From State withholding, under Delaware Paid Family and Medical Leave, select [Employee] is exempt from this contribution.
5. Select Save.

1. Go to Employees and select Employee Center.
2. Double-click the employee’s name.
3. Select Payroll Info, then Taxes.
4. Select the Other tab.
5. In the Item Name, select the DE - Paid Family & Medical Leave items, then Delete.
6. Select OK twice.