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