| The Vermont State Agency that oversees the | | | | reached at 800-786-3214 or 802-241-2194 or on |
| collection and reporting of State income taxes | | | | the web at |
| deducted from payroll checks is: | | | | Vermont does not allow compulsory direct |
| Department of Taxes | | | | deposit |
| 109 State Street | | | | Vermont requires the following information on an |
| Montpelier, VT 05609-1401 | | | | employee's pay stub: |
| (802) 828-2551 | | | | - Gross and Net Earnings |
| Vermont allows you to use the "W-4VT, | | | | - straight time and overtime pay |
| Vermont Employee Withholding Allowance | | | | - hours worked |
| Certificate" form to calculate state income tax | | | | - itemized deductions |
| withholding or federal W4 form. | | | | Vermont requires that employee be paid no less |
| Not all states allow salary reductions made under | | | | often than weekly; biweekly or semimonthly if |
| Section 125 cafeteria plans or 401(k) to be | | | | employer gives notice. |
| treated in the same manner as the IRS code | | | | Vermont requires that the lag time between the |
| allows. In Vermont cafeteria plans are not taxable | | | | end of the pay period and the payment of wages |
| for income tax calculation; taxable for | | | | to the employee not exceed six days; 13 under |
| unemployment insurance purposes. 401(k) plan | | | | union contract. |
| deferrals are not taxable for income taxes; | | | | Vermont payroll law requires that involuntarily |
| taxable for unemployment purposes. | | | | terminated employees must be paid their final pay |
| In Vermont supplemental wages are taxed at a | | | | with in 3 working days and that voluntarily |
| 7.2% flat rate. | | | | terminated employees must be paid their final pay |
| Magnetic media reporting of W-2s is not allowed in | | | | by the next regular payday; if there is none, next |
| Vermont. | | | | Friday. |
| The Vermont State Unemployment Insurance | | | | There is no provision in Vermont law concerning |
| Agency is: | | | | paying deceased employees. |
| Department of Employment and Training | | | | Escheat laws in Vermont require that unclaimed |
| 5 Green Mountain Dr. | | | | wages be paid over to the state after two years. |
| P.O. Box 488 | | | | There is no provision in Vermont law concerning |
| Montpelier, VT 05601-0488 | | | | record retention of abandoned wage records. |
| (802) 828-4344 | | | | Vermont payroll law mandates no more than |
| (877) 214-3331 | | | | $3.35 may be used as a tip credit. |
| The State of Vermont taxable wage base for | | | | In Vermont the payroll laws covering mandatory |
| unemployment purposes is wages up to $8000.00. | | | | rest or meal breaks are only that all employees |
| Vermont has optional reporting of quarterly | | | | be given a reasonable opportunity to eat and use |
| wages on magnetic media. | | | | toilet facilities. |
| Unemployment records must be retained in | | | | There is no provision in Vermont law concerning |
| Vermont for a minimum period of six years. This | | | | record retention of wage and hour records |
| information generally includes: name; social security | | | | therefor it is probably wise to follow FLSA |
| number; dates of hire, rehire and termination; | | | | guidelines. |
| wages by period; payroll pay periods and pay | | | | The Vermont agency charged with enforcing Child |
| dates; date and circumstances of termination. | | | | Support Orders and laws is: |
| The Vermont State Agency charged with | | | | Office of Child Support |
| enforcing the state wage and hour laws is: | | | | Agency of Human Services |
| Department of Labor and Industry | | | | 103 S. Main St. |
| Wage and Hour Division | | | | Waterbury, VT 05671-1901 |
| National Life Bldg., Drawer 20 | | | | (800) 786-3214 |
| Montpelier, VT 05620-3401 | | | | Vermont has the following provisions for child |
| (802) 828-2157 | | | | support deductions: |
| The minimum wage in Vermont is $7.00 per hour. | | | | - When to start Withholding? 10 days after |
| The general provision in Vermont concerning | | | | receipt of order or next payday. |
| paying overtime in a non-FLSA covered employer | | | | - When to send Payment? Within 7 days of |
| is one and one half times regular rate after | | | | Payday. |
| 40-hour week. | | | | - When to send Termination Notice? Within 10 |
| Vermont State new hire reporting requirements | | | | days of termination. |
| are that every employer must report every new | | | | - Maximum Administrative Fee? $5 per month. |
| hire and rehire. The employer must report the | | | | - Withholding Limits? Federal Rules under CCPA. |
| federally required elements of: | | | | Please note that this article is not updated for |
| - Employee's name | | | | changes that can and will happen from time to |
| - Employee's address | | | | time. |
| - Employee's social security number | | | | Charles J. Read, CPA has been in the payroll, |
| - Employer's name | | | | accounting and tax business for 30 years,the last |
| - Employers address | | | | fifteen in private practice. Mr. Read is the author |
| - Employer's Federal Employer Identification | | | | of "Tax and Accounting Issuesin Forming a New |
| Number (EIN) | | | | Business." |
| This information must be reported within 20 days | | | | To find professional payroll services at a budget |
| of the hiring or rehiring. | | | | price go to paperless payroll company. |
| The information can be sent as a W4 or | | | | For a full service payroll bureau with CPA's on |
| equivalent by mail, fax or electronically. | | | | staff visit . |
| There is a $500 penalty for conspiracy in | | | | See an excerpt of Mr. Read's interviews from |
| Vermont. | | | | William Shatner's "Heartbeat of America"television |
| The Vermont new hire-reporting agency can be | | | | show on the web sites linked above. |