unemplogo.jpg (50480 bytes) The Division of Unemployment Insurance serves workers who are unemployed through no fault of their own by providing temporary income maintenance during their period of unemployment and making referrals to re-employment services.

The Division also serves employers by ensuring that only those unemployed individuals meeting all eligibility criteria receive UI benefits, thereby protecting future increases in employer tax rates and the solvency of Delaware’s UI Trust Fund.

IV. EMPLOYER LIABILITY

  1. Liable Employers Under the Federal Unemployment Tax Act (FUTA)

    1. Agriculture Employers are liable with respect to any calendar year if:

      1. they pay cash remuneration of $20,000 or more in any calendar quarter in either the current or the preceding calendar year, or

      2. employ 10 or more individuals engaged in agricultural labor for some portion of a day in each of 20 different calendar weeks whether or not such days were consecutive in either the current or the preceding calendar year.

    2. Employers of Domestic or Household Workers, including domestic service in a private local college club, or local chapter of a college fraternity or sorority, are liable with respect to any calendar year if the employer pays cash remuneration of $1,000 or more in any calendar quarter of that year.

    3. Governmental Entities and Nonprofit Organizations are not liable under FUTA, but are covered by State law.

    4. All Other Employers are liable with respect to any calendar year if they:

      1. pay wages of $1,500 or more during any calendar quarter in the current or preceding calendar year, or

      2. employ at least one person for some portion of a day in each of 20 different calendar weeks, whether or not such weeks were consecutive in either the current or preceding calendar year.

  2. Methods of Payment

    3. Liable employers under the State U.I. law fall into two main categories, contributing or reimbursing, depending on the method of payment used to satisfy unemployment tax liability. 

    Generally, most employers are required to pay unemployment insurance assessments; however, nonprofit organizations and government entities may elect to reimburse the Unemployment Insurance Trust Fund for all benefits paid to their former employees on a dollar for dollar basis. This option is described in Section VIII, THE REIMBURSEMENT OPTION.