Vermont Payroll Tax and Labor Laws

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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

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

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

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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