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