Payroll Vermont, Unique Aspects of Vermont Payroll Law and Practice

The Vermont State Agency that oversees theelectronically. There is a $500 penalty for
collection and reporting of State income taxesconspiracy in Vermont.
deducted from payroll checks is:The Vermont new hire-reporting agency can be
Department of Taxes 109 State Streetreached at 800-786-3214 or 802-241-2194 or on
Montpelier, VT 05609-1401 (802) 828-2551the web at
Vermont allows you to use the "W-4VT,Vermont does not allow compulsory direct
Vermont Employee Withholding Allowancedeposit
Certificate" form to calculate state income taxVermont requires the following information on an
withholding or federal W4 form.employee's pay stub:
Not all states allow salary reductions made under- Gross and Net Earnings
Section 125 cafeteria plans or 401(k) to be- straight time and overtime pay
treated in the same manner as the IRS code- hours worked
allows. In Vermont cafeteria plans are not taxable- itemized deductions
for income tax calculation; taxable forVermont requires that employee be paid no less
unemployment insurance purposes. 401(k) planoften than weekly; biweekly or semimonthly if
deferrals are not taxable for income taxes;employer gives notice.
taxable for unemployment purposes.Vermont requires that the lag time between the
In Vermont supplemental wages are taxed at aend of the pay period and the payment of wages
7.2% flat rate.to the employee not exceed six days; 13 under
Magnetic media reporting of W-2s is not allowed inunion contract.
Vermont.Vermont payroll law requires that involuntarily
The Vermont State Unemployment Insuranceterminated employees must be paid their final pay
Agency is:with in 3 working days and that voluntarily
Department of Employment and Training 5 Greenterminated employees must be paid their final pay
Mountain Dr. P.O. Box 488 Montpelier, VTby the next regular payday; if there is none, next
05601-0488 (802) 828-4344 (877) 214-3331Friday.
The State of Vermont taxable wage base forThere is no provision in Vermont law concerning
unemployment purposes is wages up to $8000.00.paying deceased employees.
Vermont has optional reporting of quarterlyEscheat laws in Vermont require that unclaimed
wages on magnetic media.wages be paid over to the state after two years.
Unemployment records must be retained inThere is no provision in Vermont law concerning
Vermont for a minimum period of six years. Thisrecord retention of abandoned wage records.
information generally includes: name; social securityVermont payroll law mandates no more than
number; dates of hire, rehire and termination;$3.35 may be used as a tip credit.
wages by period; payroll pay periods and payIn Vermont the payroll laws covering mandatory
dates; date and circumstances of termination.rest or meal breaks are only that all employees
The Vermont State Agency charged withbe given a reasonable opportunity to eat and use
enforcing the state wage and hour laws is:toilet facilities.
Department of Labor and Industry Wage andThere is no provision in Vermont law concerning
Hour Division National Life Bldg., Drawer 20record retention of wage and hour records
Montpelier, VT 05620-3401 (802) 828-2157therefor it is probably wise to follow FLSA
The minimum wage in Vermont is $7.00 per hour.guidelines.
The general provision in Vermont concerningThe Vermont agency charged with enforcing Child
paying overtime in a non-FLSA covered employerSupport Orders and laws is:
is one and one half times regular rate afterOffice of Child Support Agency of Human
40-hour week.Services 103 S. Main St. Waterbury, VT
Vermont State new hire reporting requirements05671-1901 (800) 786-3214
are that every employer must report every newVermont has the following provisions for child
hire and rehire. The employer must report thesupport deductions:
federally required elements of:- When to start Withholding? 10 days after
- Employee's namereceipt of order or next payday.
- Employee's address- When to send Payment? Within 7 days of
- Employee's social security numberPayday.
- Employer's name- When to send Termination Notice? Within 10
- Employers addressdays of termination.
- Employer's Federal Employer Identification- Maximum Administrative Fee? $5 per month.
Number (EIN)- Withholding Limits? Federal Rules under CCPA.
This information must be reported within 20 daysPlease note that this article is not updated for
of the hiring or rehiring. The information can bechanges that can and will happen from time to
sent as a W4 or equivalent by mail, fax ortime.