Payroll Vermont, Unique Aspects of Vermont Payroll Law and Practice

The Vermont State Agency that oversees theEmployer's Federal Employer Identification Number
collection and reporting of State income taxes(EIN)
deducted from payroll checks is:This information must be reported within 20 days of
Department of Taxesthe hiring or rehiring.
109 State StreetThe information can be sent as a W4 or equivalent by
Montpelier, VT 05609-1401mail, fax or electronically.
(802) 828-2551There is a $500 penalty for conspiracy in Vermont.
Vermont allows you to use the "W-4VT, VermontThe Vermont new hire-reporting agency can be
Employee Withholding Allowance Certificate" form toreached at 800-786-3214 or 802-241-2194 or on the
calculate state income tax withholding or federal W4web at
form.Vermont does not allow compulsory direct deposit
Not all states allow salary reductions made underVermont requires the following information on an
Section 125 cafeteria plans or 401(k) to be treated inemployee's pay stub:
the same manner as the IRS code allows. In VermontGross and Net Earningsstraight time and overtime
cafeteria plans are not taxable for income taxpayhours workeditemized deductions
calculation; taxable for unemployment insuranceVermont requires that employee be paid no less often
purposes. 401(k) plan deferrals are not taxable forthan weekly; biweekly or semimonthly if employer
income taxes; taxable for unemployment purposes.gives notice.
In Vermont supplemental wages are taxed at a 7.2%Vermont requires that the lag time between the end
flat rate.of the pay period and the payment of wages to the
Magnetic media reporting of W-2s is not allowed inemployee not exceed six days; 13 under union
Vermont.contract.
The Vermont State Unemployment Insurance AgencyVermont payroll law requires that involuntarily
is:terminated employees must be paid their final pay with
Department of Employment and Trainingin 3 working days and that voluntarily terminated
5 Green Mountain Dr.employees must be paid their final pay by the next
P.O. Box 488regular payday; if there is none, next Friday.
Montpelier, VT 05601-0488There is no provision in Vermont law concerning
(802) 828-4344paying deceased employees.
(877) 214-3331Escheat laws in Vermont require that unclaimed
The State of Vermont taxable wage base forwages be paid over to the state after two years.
unemployment purposes is wages up to $8000.00.There is no provision in Vermont law concerning
Vermont has optional reporting of quarterly wages onrecord retention of abandoned wage records.
magnetic media.Vermont payroll law mandates no more than $3.35
Unemployment records must be retained in Vermontmay be used as a tip credit.
for a minimum period of six years. This informationIn Vermont the payroll laws covering mandatory rest
generally includes: name; social security number; datesor meal breaks are only that all employees be given a
of hire, rehire and termination; wages by period; payrollreasonable opportunity to eat and use toilet facilities.
pay periods and pay dates; date and circumstances ofThere is no provision in Vermont law concerning
termination.record retention of wage and hour records therefor it
The Vermont State Agency charged with enforcingis probably wise to follow FLSA guidelines.
the state wage and hour laws is:The Vermont agency charged with enforcing Child
Department of Labor and IndustrySupport Orders and laws is:
Wage and Hour DivisionOffice of Child Support
National Life Bldg., Drawer 20Agency of Human Services
Montpelier, VT 05620-3401103 S. Main St.
(802) 828-2157Waterbury, VT 05671-1901
The minimum wage in Vermont is $7.00 per hour.(800) 786-3214
The general provision in Vermont concerning payingVermont has the following provisions for child support
overtime in a non-FLSA covered employer is one anddeductions:
one half times regular rate after 40-hour week.When to start Withholding? 10 days after receipt of
Vermont State new hire reporting requirements areorder or next payday.
that every employer must report every new hire andWhen to send Payment? Within 7 days of Payday.
rehire. The employer must report the federally requiredWhen to send Termination Notice? Within 10 days of
elements of:termination.
Employee's nameMaximum Administrative Fee? $5 per month.
Employee's addressWithholding Limits? Federal Rules under CCPA.
Employee's social security numberPlease note that this article is not updated for changes
Employer's namethat can and will happen from time to time.
Employers address