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Navigating District of Columbia Payroll Taxes
District of Columbia employers must comply with several state payroll tax requirements, including New Hire Reporting, income tax withholding, and unemployment insurance (UI) reporting. These obligations are administered by the DC Office of Tax and Revenue (OTR) and the DC Department of Employment Services (DOES) and apply to all employers with workers in the District.
This guide provides a comprehensive overview of DC payroll tax filing requirements, covering New Hire Reporting, withholding Forms FR-900Q and FR-900A, and unemployment insurance Form UC-30, along with filing deadlines, reporting methods, and compliance considerations to help employers stay up to date and avoid penalties.
District of Columbia New Hire Reporting
New Hire Reporting is a mandatory legal requirement for all employers in the District of Columbia to report newly hired, rehired, and recalled employees to the DC Directory of New Hires. This reporting supports child support enforcement and helps reduce fraud in unemployment and public assistance programs.
Who must report
All District of Columbia employers and/or labor organizations — including government entities, nonprofit organizations, and private businesses — must report newly hired, rehired, and recalled employees, regardless of the number of employees. There are no exemptions for any employer type. Learn more
Multi-State Employers
Multi-state employers have two options:
- Report newly hired employees to the state in which they are working, following each state's specific new hire regulations; or
- Select one state where you have employees working and electronically report all new hires to that single state
Multi-state employers who choose Option 2 must notify the U.S. Department of Health and Human Services by registering as a multistate employer. Learn more
What to report
- Employee Details: Employee's legal full name, Employee's physical address, Social Security Number (SSN), Date of hire (latest date services for remuneration first began), State of hire (for multi-state employers as applicable)
- Employer Details: Federal Employer Identification Number (FEIN), Name of Business, business address, contact's name, phone and fax numbers, and email address
When to report
Employers must report new hires Within 20 days of the employee's hire, rehire, or recall date. Electronic filers must submit reports in two monthly transmissions not more than 16 days apart instead of reporting individually. District of Columbia Revised Statute §46-226.06
How to report
The DC Directory of New Hires offers multiple ways for employers to submit new hire reports:
1. Online (Recommended):
- Report new hires through the official DC New Hire Reporting Portal
- Register using your FEIN and a valid email address
- Submit new hire information electronically and receive confirmation
-
Electronic file submissions also accepted via Secure File Transfer Protocol (SFTP), diskette, CD-ROM, or
tape cartridges
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2. Fax:
- Complete the new hire report and fax it to (877) 892-6388
- Keep a copy of the fax confirmation for your records
3. Mail:
Complete the New Hire Report and mail it to:
DC Directory of New Hires
P.O. Box 457
Norwell, MA 02061
Use certified or trackable mail for proof of delivery.
New Hire Reporting Penalties
Employers who fail to report newly hired, rehired, or recalled employees in the required timeframe may be assessed a penalty of up to $25 per employee. This can be increased to up to $500 per employee if the employer and employee conspire to avoid reporting or provide false information.
Corrections
If you discover an error on a previously submitted new hire report, corrections should be made through the DC New Hire Reporting Portal at www.dc-newhire.com. You may also contact the DC Directory of New Hires directly:
- Toll Free Phone: 877-846-9523
- Fax: 877-892-6388
- Email: contact@dc-newhire.com
District of Columbia Withholding Tax Forms (FR-900Q & FR-900A)
District of Columbia employers are required to file withholding tax returns to report and remit DC income tax withheld from employee wages to the DC Office of Tax and Revenue (OTR). These filings ensure that the taxes deducted from employees' wages during the year are properly reported and paid to the District.
DC previously used Form FR-900M (monthly filer booklet) and Form FR-900B (annual reconciliation return). Both forms have been discontinued as of 2017. All monthly filers were converted to quarterly filers under FR-900Q, and FR-900B was replaced by FR-900A. If you previously filed using these forms, please use FR-900Q or FR-900A
going forward.
Who Must File
All employers and payors in the District of Columbia who withhold DC income tax from employee wages must file withholding tax returns with OTR. This includes private businesses, nonprofit organizations, government entities, and any individual or business that has withheld income tax for a DC resident.
Employers must register with OTR by completing Form FR-500 via MyTax.DC.gov before filing any withholding returns.
Even if no DC income tax was withheld during a period, employers must still file the required return for that period, unless a final return was previously filed.
Important Note: Effective TY2023, all DC withholding tax returns must be filed electronically via MyTax.DC.gov. OTR encourages all employers to file electronically regardless of tax year. Learn more
Form Types
Form FR-900Q: Employer/Payor Withholding Tax Quarterly Return
- Purpose: Reports and remits DC income tax withheld from employee wages for each quarter. Also used by household employers beginning January 1, 2019.
- Who must file: All employers required to pay on a monthly or quarterly basis. You must file even if no tax was withheld or no payment is due, unless a final return was previously filed.
-
When to file: Due on the last day of the month following the end of the quarter:
- Quarter 1 (Jan–Mar): April 30
- Quarter 2 (Apr–Jun): July 31
- Quarter 3 (Jul–Sep): October 31
- Quarter 4 (Oct–Dec): January 31
- Deposits: OTR requires payments on a weekly, semi-weekly, monthly, or quarterly basis depending on your assigned deposit schedule. Deposits are due by the 20th day of the month following the reporting period.
- Where to file: Electronically via MyTax.DC.gov (mandatory effective TY2023).
Form FR-900A: Employer/Payor Withholding Tax Annual Return
- Purpose: Annual return for employers whose total DC withholding is less than $200 per year.
- Who must file: Annual wage filers who meet the under-$200 threshold. Must file even if no tax was withheld or no payment is due, unless a final return was previously filed.
- When to file: Due January 31 of the following year. Deposits are due by January 20.
- Where to file: Electronically via MyTax.DC.gov.
Form FR-900P: Payment Voucher for Withholding Tax
- Purpose: Used for making withholding tax payments by paper (non-electronically) when the payment amount is less than $5,000. Use this form only if you are not submitting payment electronically. Note that if your payment exceeds $5,000 per period, you are required to pay electronically.
What to Report
When filing Form FR-900Q or FR-900A, employers must report:
- Employer information: Business name, address, FEIN, and DC 12-digit withholding account ID (must begin with "300")
- Total wages paid: Total wages subject to DC income tax during the reporting period
- Total Tax Withheld: Amount of DC income tax withheld from employee wages for that period
How to File
Employers have the following options to submit DC withholding tax returns:
-
Online (Preferred):
- Log in to MyTax.DC.gov — OTR's official tax portal
- File and pay FR-900Q or FR-900A electronically
- Payment methods accepted: ACH Debit (no fee), ACH Credit, or Credit/Debit Card (Visa, Mastercard, Discover, American Express)
- Bulk filers may upload wage data via CSV or text (.txt) file format
A $65 dishonored payment fee will be charged if your check or electronic payment is not honored by your financial institution
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-
By Mail:
- Use Form FR-900P (Payment Voucher) for paper payments under $5,000
- Note: Payments exceeding $5,000 must be submitted electronically
- Complete the form and mail to:
Office of Tax and Revenue
PO Box 96385
Washington, DC 20090-6385 - Include a check or money order payable to the DC Treasurer
- Keep copies of all submitted forms and payments for your records
Penalties
Employers in the District of Columbia must file and pay withholding tax returns (FR-900Q and FR-900A) on time. Failing to meet deadlines results in penalties assessed by the DC Office of Tax and Revenue (OTR).
| Penalty Type | Penalty Rate / Amount | When It Is Incurred |
|---|---|---|
| Late Filing / Late Payment | 5% per month (or fraction of a month), up to a maximum of 25% of tax due | Assessed for each month or part of a month that the return is not filed or the tax is not paid by the due date |
| Negligence Penalty | 20% of the underpaid amount | Applied when underpayment is attributable to negligence — such as failure to maintain adequate records or failure to make a reasonable attempt to comply with DC tax law |
| Interest | 10% per year, compounded daily | Assessed on any unpaid tax balance from the original due date until the date the tax is paid in full |
| Collection Fee | 10% of the unpaid balance | Added after 90 days of non-payment on any remaining unpaid tax balance |
| Fraud Penalty | 75% of the underpaid amount | Charged when the tax underpayment is determined to be the direct result of fraud |
DC Withholding Corrections
If you discover an error on a previously filed FR-900Q or FR-900A — such as underreported wages or incorrect withholding amounts — you must file an amended return through MyTax.DC.gov.
- Online (Preferred): Log in to MyTax.DC.gov and file an amended FR-900Q or FR-900A, marking it clearly as an amended return
- By Paper: Complete a new FR-900Q or FR-900A marked "Amended" and mail it to the OTR office
- Any additional tax due must be paid in full — penalties and interest will apply on amounts paid after the original due date
- For assistance, contact OTR at (202) 759-1946 or email e-services.otr@dc.gov
District of Columbia Unemployment Insurance (UI) Tax — Form UC-30
District of Columbia employers are required to file unemployment insurance contribution and wage reports using Form UC-30, administered by the DC Department of Employment Services (DOES). These filings fund the DC Unemployment Insurance Trust Fund, which provides temporary benefits to eligible workers who become unemployed through no fault of their own.
Who Must File
All DC employers who pay wages to one or more employees for services performed in the District of Columbia must register with DOES and file UI contribution and wage reports. This includes businesses of all sizes, nonprofit organizations, and government agencies — regardless of whether services are performed full-time, part-time, or on a temporary basis.
Employers must register online via the Employer Self-Service Portal (ESSP) before filing. Upon registration, employers are assigned a 6-digit UI Tax account number, which must be included in all DOES correspondence.
You must file Form UC-30 even if no wages were paid or no contributions are due for the quarter.
Employers with 5 or more employees are required to file electronically via ESSP. Employers with fewer than 5 employees may file by paper using Form UC-30.
Taxable Wage Base & Rates
DC UI tax is calculated based on each employee's taxable wages and the employer's assigned contribution rate.
Annual Wage Base
For 2026, the DC unemployment insurance taxable wage base is $9,000 per employee. Wages above this amount are not subject to UI contributions.
Contribution Rate
Rates are assigned annually by DOES and vary based on the employer's experience rating.
- New Employers (2026): Standard rate of 2.7%, or the average rate of all employers during the preceding year, whichever is higher
- Experienced Employers: Rates are determined by each employer's unique experience — benefit charges, taxes paid, and average taxable payroll over the preceding three years
Administrative Assessment
All employers — both rated and reimbursable — are also subject to a 0.2% administrative assessment on the first $9,000 of wages paid per employee each quarter. This is in addition to the regular UI tax and is due by the same date.
What to Report
Employers must include the following on Form UC-30:
- Employee Information: Name, Social Security Number (SSN), and number of hours worked
- Wages Paid: Gross wages paid during the quarter on a when-paid basis (not when earned), including commissions, bonuses, tips, vacation pay, severance pay, and non-cash remuneration
- Employer Details: Business name, address, FEIN, and 6-digit DC UI Tax account number
- Quarterly Contribution Data: Total wages subject to DC UI tax and contributions owed based on the assigned tax rate
When to File
Form UC-30 is filed quarterly. The filing deadlines are as follows:
- Q1 (Jan–Mar): Due April 30
- Q2 (Apr–Jun): Due July 31
- Q3 (Jul–Sep): Due October 31
- Q4 (Oct–Dec): Due January 31 of the following year
Reports are due on the due date regardless of whether it falls on a non-business day.
How to File
-
Online (Required for 5+ employees):
- Log in to the DOES Employer Self-Service Portal (ESSP)
- Complete Form UC-30 with employee wage and contribution details
- Submit electronically — reduces errors and ensures timely processing
- Payment methods: ACH Debit or check with a preprinted payment voucher
- Bulk wage file upload supported via four approved ESSP file format specifications
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-
By Mail (fewer than 5 employees):
- Request Form UC-30 by calling (202) 698-7550 — DOES no longer mails forms automatically
- Complete all employer, employee, and wage details
- Include payment by check or money order payable to "Department of Employment Services" or "DOES"
- Write your 6-digit UI Employer Account Number on the check
-
Mail the completed form and payment to:
Department of Employment Services Office of Unemployment
Compensation — Tax Division 4058 Minnesota Avenue,
N.E., 4th Floor Washington, D.C. 20019
Tax Payments
For employers filing online via ESSP, contributions may be remitted by ACH Debit or by check with a preprinted payment voucher. For paper filers, full payment must accompany the completed form. Payments must be submitted by the quarterly due date to avoid penalties.
FUTA Credit for Timely Filers
DC employers who file Form UC-30 and pay UI contributions on time are eligible for up to a 5.4% FUTA credit, reducing the effective federal unemployment tax rate from 6.0% to 0.6% on the first $7,000 of wages per employee. Note that late or missing UC-30 filings may result in losing this credit entirely.
DC Unemployment Insurance Penalties
Employers in the District of Columbia must file Form UC-30 and pay UI contributions on time. Failure to meet deadlines results in penalties and interest assessed by DOES.
Late Filing / Late Payment Penalty
- Penalty of 10% of tax due or $100, whichever is higher
- Assessed when a quarterly report or payment is not received by the due date
- Rejected forms are also subject to penalty and interest if not corrected and resubmitted by the due date
Interest
- 1.5% per month (or fraction of a month) on any unpaid tax balance
- Charged from the original due date until the tax is paid in full
DC UI Corrections
If you discover an error on a previously filed Form UC-30 — such as incorrect wages or miscalculated contributions — you must submit a corrected report as soon as possible, preferably before the next quarter's filing, to avoid additional penalties.
- Online (Preferred): Amend the report directly via ESSP
- By Paper: Complete Form 226 (Statement to Correct Contribution and Wage Report) with supporting documentation and mail to the Tax Division address above
- To request Form 226, call (202) 698-7550
- Rejected or corrected forms remain subject to penalty and interest if not resolved by the original due date
- For assistance: uitax.info@dc.gov or (202) 698-7550
District of Columbia Payroll Tax Filing — Simple, Transparent Pricing
TaxBandits offers clear, flat-rate pricing for District of Columbia payroll forms, ensuring fast, accurate, and affordable e-filing.
| Forms | Price per Form* |
|---|---|
| New Hire Reporting | $1 / Employee |
| Withholding Form (FR-900Q, FR-900A) | $5.95 |
| Unemployment Wage Report (UC-30) | $5.95 |
*No hidden fees. No subscriptions. Pay only for what you file.
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- New Hire Reporting
- Forms FR-900Q & FR-900A
- Form UC-30
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Frequently Asked Questions
How do I report a new hire in DC?
Register at www.dc-newhire.com using your FEIN and a valid email address. Log in and submit new hire information electronically. You can also fax to (877) 892-6388 or mail to DC Directory of New Hires, PO Box 457, Norwell, MA 02061.
How long do DC employers have to report a new hire?
DC employers must report new hires within 20 days of the hire, rehire, or recall date. Electronic filers must submit two monthly transmissions no more than 16 days apart. This applies to full-time, part-time, and temporary employees.
What is the penalty for not reporting new hires in DC?
Employers who fail to report on time may be fined up to $25 per employee. If the employer and employee conspire to avoid reporting or provide false information, the penalty increases to up to $500 per employee.
When is Form FR-900Q due in DC?
Form FR-900Q is due on the last day of the month following each quarter end. Quarter 1 is due April 30, Quarter 2 is due July 31, Quarter 3 is due October 31, and Quarter 4 is due January 31.
Do I withhold DC tax for employees who live in Maryland or Virginia?
No. DC has reciprocal tax agreements with Maryland and Virginia. If an employee lives in either state but works in DC, withhold for their home state, not DC. The employee must submit Form D-4A to claim this exemption.
What is the penalty for filing FR-900Q late in DC?
DC OTR charges 5% per month on unpaid tax, up to 25% of tax due. Interest accrues at 10% per year compounded daily. A 10% collection fee is added after 90 days, and a 75% fraud penalty applies if underpayment is due to fraud.
How do I file Form UC-30 in DC?
Employers with 5 or more employees must file electronically through ESSP at essp.does.dc.gov. Employers with fewer than 5 employees may file by paper by calling (202) 698-7550. Payment is accepted by ACH Debit or check with a preprinted payment voucher.
Do I need to file UC-30 if I paid no wages this quarter?
Yes. DC employers must file Form UC-30 every quarter even if no wages were paid. Failure to file may result in a penalty of 10% of tax due or $100, whichever is higher, plus interest of 1.5% per month.
Does filing UC-30 on time reduce my federal unemployment tax?
Yes. Timely DC employers are eligible for up to a 5.4% FUTA credit, reducing the federal rate from 6.0% to just 0.6% on the first $7,000 of wages per employee
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