State guide
How to Register for Washington, DC Payroll Taxes
Let a dedicated tax manager file your Washington, DC registrations with you, or use the step-by-step guide below.
Last updated:
At a glance
1 form, the FR-500, starts both accounts
$9,000 UI wage base in 2026
2.7% new employer UI rate, plus a 0.2% fee
0.75% Paid Family Leave, employer-paid
Done for you
District accounts, filed right
Skip the paperwork. Your dedicated PayAdvisors tax manager registers you with the District and gets your tax IDs for you. In Washington, DC that means a withholding account with the Office of Tax and Revenue and an unemployment insurance account with the Department of Employment Services, which also collects the Paid Family Leave tax.
- One tax manager who owns your file
- FR-500 and DOES registration filed with you
- Paid Family Leave reporting set up with UI
- New hire reporting set up for the 20-day rule
Hands-on help from a real person who knows Washington, DC employer accounts. Use it alone or with managed payroll.
Quick answer
Washington, DC payroll tax registration at a glance
District employers start with one form: the FR-500 Combined Business Tax Registration, filed through MyTax.DC.gov with the Office of Tax and Revenue (OTR). OTR opens the withholding account, and the Department of Employment Services (DOES) uses the same FR-500 to decide unemployment liability and assign a six-digit UI account number.
In 2026, District unemployment tax applies to the first $9,000 of each employee's wages. New employers pay 2.7% plus a 0.2% Administrative Assessment Fee. Paid Family Leave is a separate 0.75% tax paid entirely by the employer. New hires are due within 20 days.
Who must register
Who registers in the District
Most District employers need both accounts.
| Situation | District requirement |
|---|---|
| You start a business in the District | File the FR-500 New Business Registration with OTR |
| You pay wages to a District resident and withhold DC income tax | File DC withholding returns (FR-900Q) with OTR |
| You have one or more people working in the District | You're generally liable for DC unemployment insurance |
| You pay UI as a covered employer | You're also covered for Paid Family Leave |
| You hire or rehire employees | Report them within 20 days |
Registration steps
How to register in the District
One form, then DOES follow-up.
- Register with DLCP if your business needs a license, then file the FR-500. OTR says to go back to DLCP for the business license afterward.
- File the FR-500 online with your FEIN, legal form of business, and owner or officer details.
- Get employee withholding forms from OTR's withholding tax forms page.
- Watch for DOES's liability decision. DOES tells you whether you're liable, when liability began, and which quarters are due.
- Set up DOES's Employer Self Service Portal (ESSP) to file UI and Paid Family Leave wage reports.
- Report each new hire and rehire to the DC Directory of New Hires within 20 days.
More than withholding
Withholding, UI and Paid Family Leave
The District adds an employer-paid Paid Family Leave tax to the usual withholding and unemployment accounts.
On your own
- An FR-500, then a separate DOES account
- Quarterly FR-900Q, UI and PFL reports
- A 20-day new hire deadline
With your PayAdvisors tax manager
- Your tax manager files them with you
- You get one calendar for every filing
- We set up reporting from day one
Handled by your tax manager.
Prepare
What to collect first
Have these ready before you file the FR-500.
- Your FEIN and legal form of business
- Names, titles, home addresses and Social Security numbers of the owners, partners or principal officers
- Your Articles of Incorporation or Articles of Organization, or trade name certificate
- Any prior District registration details
Accounts
What you end up with
Two accounts, two agencies.
- An OTR withholding account for FR-900Q quarterly returns, filed electronically through MyTax.DC.gov.
- A DOES unemployment insurance account with its own six-digit number, used for quarterly UI and Paid Family Leave wage reports.
Rates
District 2026 payroll tax numbers
Figures published for 2026.
| Item | Figure |
|---|---|
| UI taxable wage base | First $9,000 per employee (2026) |
| New employer UI rate | 2.7%, or the prior year's average rate if higher (2026) |
| Administrative Assessment Fee | 0.2% (2026) |
| Paid Family Leave (employer-paid) | 0.75% of each covered employee's wages, all four quarters of 2026 |
Pitfalls
District mistakes to avoid
Most problems come from the extra accounts.
- Deducting Paid Family Leave from pay. PFL is fully employer-funded, with no payroll deductions from workers.
- Filing FR-900Q on paper. OTR says the return must be filed electronically.
- Hiring before registering with DOES. Liable employers who don't register owe back taxes, interest and penalty from their first DC wages.
- Mixing up account numbers. The DOES UI number is different from your FEIN and your OTR tax number.
Related duties
Other District employer obligations
These run alongside the tax accounts.
- New hire reporting. Report new hires and rehires to the DC Directory of New Hires within 20 days.
- Workers' compensation. The DC Code requires every employer to secure the payment of compensation through an authorized insurer or approved self-insurance.
- Paid Family Leave notice. DOES says employers should post the updated Mandatory Employee Notice where all workers can see it.
Filing calendar
District deadlines after registration
Withholding and Paid Family Leave run quarterly.
- Withholding deposits: by the 20th of the next month, or the 20th after the quarter, depending on your schedule.
- FR-900Q: last day of the month after each quarter (April 30, July 31, October 31, January 31).
- Paid Family Leave: April 30, July 31 and October 31, 2026, and January 31, 2027.
- UI wage reports: quarterly through ESSP; see DOES for due dates.
- New hire reports: within 20 days of hire or rehire.
Official links
District agency links
Official forms, rates and guidance.
- DC Office of Tax and Revenue: New Business Registration (FR-500)
- DC Department of Employment Services: Registration Questions
- DC Department of Employment Services: Employer Self Service Portal
- DC Department of Employment Services: Tax Rate Questions
- DC Office of Paid Family Leave: Employer Information
- DC Office of the Attorney General: New Hire Reporting
- DC Office of Tax and Revenue: 2026 FR-900Q Instructions
- DC Code § 32-1534: Security for Payment of Compensation
Washington, DC registration questions
How do I register for payroll taxes in Washington, DC?
File the FR-500 Combined Business Tax Registration through MyTax.DC.gov. OTR opens your withholding account, and DOES uses the FR-500 to set up your unemployment account.
Is DC a state for payroll tax purposes?
No, but the District runs its own payroll taxes: income tax withholding through OTR and unemployment insurance and Paid Family Leave through DOES.
What is the DC new employer unemployment rate?
For 2026 it is 2.7%, or the prior year's average if higher, plus a 0.2% Administrative Assessment Fee, on the first $9,000 of each employee's wages.
Who pays DC Paid Family Leave?
The employer. The 2026 rate is 0.75% of each covered employee's wages, with no payroll deductions from workers.
Do I withhold DC income tax for every employee?
OTR's FR-900Q instructions cover employers who pay wages to District residents and withhold DC income tax. Check OTR's instructions for employees who live elsewhere.
How fast must I report new hires in the District?
Within 20 days of hire or rehire, to the DC Directory of New Hires.
I am the only employee of my S corporation. What do I need in the District?
If you live in the District and pay yourself wages, you need the OTR withholding account. Check with DOES on whether your officer pay is covered for unemployment and Paid Family Leave. A dedicated tax manager can complete the registrations with you as part of our S corp payroll package.
How is registration priced?
The District issues two IDs: an OTR withholding account and a DOES unemployment account. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
Is this tax advice?
No. It summarizes official guidance from District of Columbia agencies. Ask your CPA or tax advisor about your own facts.
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Next step
Let us set up Washington, DC with you
A dedicated tax manager files your FR-500 and DOES registration with you, sets up Paid Family Leave and new hire reporting, and confirms your accounts before your first payroll. Pricing depends on the states and accounts involved. We'll quote it on a quick consultation.
About this guide
Last verified and sources
Last verified October 30, 2026 against District of Columbia agency pages and the DC Code. This guide is general information, not tax or legal advice.
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- Payroll setup for new businesses
- Payroll tax filing and compliance
- S corp payroll
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Sources
- DC Office of Tax and Revenue (OTR), New Business Registration
- DC Department of Employment Services (DOES), Registration Questions
- DOES, Employer Self Service Portal (ESSP) landing page
- DOES, Tax Rate Questions
- DOES Office of Paid Family Leave, Employer Information
- DC Office of the Attorney General, Child Support Services: New Hire Reporting
- OTR, 2026 FR-900Q Instructions (PDF)
- DOES, Liability Questions
- DC Code § 32-1534, Security for payment of compensation
- OTR, Withholding Tax Forms
- DOES Office of Paid Family Leave, 2026 Program Changes