Vermont Payroll Services

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Vermont Payroll Tax and Labor Laws

Get your Vermont State Tax ID Number

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Click Here to Obtain State Unemployment Tax ID

Did you know that nonresidents working in Vermont receive Vermont withholdings, which are computed on their entire earnings, and reduced by the amount withheld for other states where services were performed?

Vermont Wage and Hour Laws

Employers must pay employees covered by Vermont's minimum wage law at least $11.75 an hour.

All employees are covered except for:

  • employees working in an executive, administrative or professional capacity;
  • outside salespersons;
  • agricultural workers;
  • cab drivers; and
  • students working during a school year or during vacation.

Vermont Payroll for Employers

Employers covered by Vermont's wage payment law must pay wages weekly or (if written notice is given employees) on a biweekly or semimonthly basis. Paydays cannot be more than six days following the close of a pay period or more than 13 days if provided for in a collective bargaining agreement. All employees are covered.
Vermont Unemployment:

Taxable Wage Base ($000s):                        14,100

New Employer Rate (% Taxable Wages)    1.0 - 5.6*

Vermont Income Tax Withholding

Vermont requires employers to withhold state income tax from their employees' wages and remit the amounts withheld to the Vermont Department of Taxes.

Employers located in Vermont or out-of-state employers with employees working in the state are required to withhold Vermont income tax from Vermont residents or from residents of other states working in Vermont. As a convenience to their employees residing in Vermont, out-of-state employers with no activities in the state may withhold Vermont income tax from the wages earned out-of-state by these employees.

Vermont Benefits

Vermont Voting Rights:

Employer Right to Schedule Voting Hours         Not Specified

Pay Deduction for Voting Time Leave                 No

Employers must allow employees sufficient unpaid leave time for local voting in annual town hall meetings.

Vermont Links

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.
*Rates vary by industry.
Accurate as of January 2021