DISTRICT OF COLUMBIA PAYROLL RESOURCES · DC · REVIEWED 2026-10-03
Review the District’s itemized wage-statement requirement—including the new 2026 compensation-source line—the July 1, 2026 minimum wage, employer-funded Paid Family Leave, unemployment, nonresident withholding, and official District resources. Run payroll for a small team and get employee statements from every calculated run.
AT A GLANCE
D.C. Code § 32-1008(b) requires employers to furnish each employee, at the time of payment of wages, an itemized statement showing the date of the wage payment; gross wages paid; deductions from and additions to wages, including a separate line for gratuities; net wages paid; hours worked during the pay period; the employee’s tip-declaration information for the pay period, delineating cash tips and credit-card tips; and, beginning January 1, 2026, a list of the sources of the employee’s compensation in addition to base wages and gratuities—such as bonuses, sales commissions, amounts calculated as a percentage of service charges, or other sources. Employers must also preserve payroll records for at least three years.
At each wage payment, show the payment date, gross wages, deductions and additions with a separate gratuities line, net wages, hours worked, tip-declaration information, and—beginning January 1, 2026—a list of additional compensation sources.
See details →Use the Office of Tax and Revenue’s current withholding instructions and tables and the employee’s Form D-4. Nonresident employees certify nonresidence on Form D-4A.
View withholding instructions and tables →D.C. Paid Family Leave is funded entirely by employer contributions—0.75% of covered employees’ wages for 2026. It may not be deducted from employee pay.
View PFL employer FAQ →Newly liable employers are assigned the higher of the prior-year average contribution rate or 2.7%. The District’s taxable wage base is $9,000. Employers should confirm administrative assessments on their annual notice.
View tax rate questions →STATE PAYROLL OVERVIEW
The District’s itemized-statement requirement is among the more detailed in the country, and it changed in 2026. D.C. Law 26-55, effective December 6, 2025, added a requirement that beginning January 1, 2026 the statement list the sources of an employee’s compensation in addition to base wages and gratuities, including bonuses, commissions on sales, any amount calculated as a percentage of service charges, or other sources. The statement must also keep gratuities on a separate line and include the employee’s tip-declaration information delineating cash and credit-card tips.
The District’s minimum wage is $18.40 per hour effective July 1, 2026, for all employers regardless of size. The tipped base wage is $10.30 per hour from July 1, 2026, and employers must make up any shortfall when wages and tips do not reach the full minimum. Because the District adjusts rates on July 1, a pay period spanning that date may require two rates.
District payroll also includes employer-funded Paid Family Leave and unemployment contributions. Neither is deducted from employee pay.
PAYROLL REQUIREMENTS CHECKLIST
Furnish the itemized statement at the time of each wage payment under D.C. Code § 32-1008(b).
Show the date of the wage payment, gross wages, deductions from and additions to wages with a separate line for gratuities, net wages, hours worked during the pay period, the employee’s tip-declaration information delineating cash and credit-card tips, and—beginning January 1, 2026—a list of compensation sources beyond base wages and gratuities.
Apply $18.40 per hour and the $10.30 tipped base wage from July 1, 2026, making up any tip shortfall to the full minimum.
Apply District withholding (or nonresident exemption), employer-funded Paid Family Leave, unemployment contributions, paid sick leave, and three-year payroll-record retention separately.
PAYROLL RECORDS IN PRACTICE
The statute requires an itemized statement but does not set out a general electronic-delivery consent or opt-out procedure. Use a method the employee can readily access, print, and keep, and confirm current DOES guidance.
Preserve required payroll records—including each employee’s name, address, occupation, rate of pay, amount paid each pay period, and precise times worked each day and workweek—for at least three years, or longer if the prevailing federal standard requires.
USE CURRENT D.C. TABLES — AND CHECK RESIDENCE
D.C. income-tax withholding depends on Form D-4, wages, and payroll frequency, using the Office of Tax and Revenue’s current tables. Employees who are not District residents certify nonresidence on Form D-4A; District law does not tax nonresidents’ wages, so employers generally withhold for the employee’s home state instead when required.
Current District withholding tables and employer instructions.
View source →LOCAL CONSIDERATIONS
The District is a single jurisdiction, so there are no separate city or county payroll overlays within it. The location-sensitive issues are residence, cross-border commuting, and the District’s tipped-employee rules.
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OFFICIAL DISTRICT OF COLUMBIA SOURCES USED FOR THIS PAGE
Primary authority for the itemized statement, the 2026 compensation-source line, and three-year record retention.
$18.40 minimum and $10.30 tipped base wage effective July 1, 2026.
Current District withholding tables.
Forms D-4 and D-4A.
New-employer unemployment rate and wage base.
Employer-funded Paid Family Leave contributions.
RESEARCH & REVIEW
This page is built from primary District of Columbia sources and is periodically reviewed against current agency guidance. We use the D.C. Code, Department of Employment Services wage-hour, unemployment, and Paid Family Leave materials, and Office of Tax and Revenue withholding publications whenever available.
FREQUENTLY ASKED QUESTIONS
ACCURATE RECORDS. SUPPORTING EVIDENCE.
Prepare a D.C. Pay Run, review gratuities, compensation sources, and residence-based withholding before completion, and keep the applicable District sources with your payroll workflow.