Vermont employer tax information
About Vermont employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Vermont, you must be registered with the Vermont Department of Taxes and Vermont Department of Labor so we can pay and file your state taxes.
For Vermont Department of Taxes, you need your:
Vermont Withholding Account Number (WHT + 8 digits)
For Vermont Department of Labor, you need your:
Vermont UI Account Number (7 digits)
Vermont Contribution Rate
The Vermont Department of Labor typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Vermont website or contact the Vermont Department of Labor directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Vermont payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
-
Withholding Tax Payment (VT WHT-430): processes after every pay run
The withholding tax payment made by Square Payroll services as both the payment voucher and filing. This form will not appear in your Tax Forms in your Square Dashboard.
Quarterly Withholding Reconciliation and Health Care Contribution (VT WHT-436): processes quarterly
Health Care Contribution Tax Payment (VT WHT-430): processes quarterly
Wage and Tax Statement (W-2): processes annually
Annual Withholding Reconciliation (VT WHT-434): processes annually
Quarterly Wage and Contribution Report (VT C-101): processes quarterly
New Hire Report: processes as needed
Make Vermont payroll tax payments
To make Vermont withholding tax payments, you must be registered with the Vermont Department of Taxes and have a Vermont Withholding Account Number. If you don’t have an account number, you can register for one on the myVTax website.
There are two options for making withholding tax payments:
To pay online, go to myVTax.
To pay by mail, download Form WHT-430 and mail completed form along with the payment to:
P.O. Box 547
Montpelier, VT 05601-0547.
Use this voucher for the first and second payments of each quarter if you file monthly, are not required to use myVTax, and cannot file and pay through myVTax. Payments are generally due on the 25th of the month.
For questions, contact the Vermont Department of Taxes, Taxpayer Services Division at 802-828-2551 or email tax.business@vermont.gov.
To make Vermont unemployment insurance tax payments, you must be registered with the Vermont Department Labor and have a Vermont Unemployment Tax Account Number. If you don’t have an account number, you can register for one on the Vermont Internet Tax and Wage System (VITWS).
To pay online, payments can be made thru ACH Debit
To pay by mail, download Form C-101 and mail completed form along with check payable to VDOL to the address indicated on the form.
For questions, contact the Vermont Department of Labor, Employer Services line at 802-828-4344.
Make unemployment insurance tax filings in Vermont
You must file and pay for Form C-101 electronically. Unemployment tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file online, use VITWS then select File Your QUarterly Reports & Taxable Wage Base Information to file Form C-101.
To file by mail, download Form C-101 and mail completed form along with any payments due to the address indicated on the form.
For questions, contact the Vermont Department of Labor, Employer Services line at 802-828-4344.
Make Vermont payroll withholding tax filings
Form WHT-436 is due on the 25th of the month concluding the quarter (for example, due April 25 for the first quarter). The form is due every quarter for quarterly filers (all taxpayers, including semi-weekly and monthly filers).
To file online, use myVTax.
To pay by mail, download WHT-436 and mail in to:
PO Box 547
Montpelier, VT 05601-0547.
Filing by mail is only available for employers with less than 25 W-2s and/or 1099s.
For questions, contact the Vermont Department of Taxes, Taxpayer Services Division at 802-828-2551 or email tax.business@vermont.gov.
Form WHT-434 is due by January 31 for the preceding calendar year. All taxpayers are required to file Form WHT-434.
Use myVTax to file your WHT-434 along with copies of your W-2s and/or 1099s
To pay by mail, download WHT-434 and mail in to:
PO Box 547
Montpelier, VT 05601-0547.
Filing by mail is only available for employers with less than 25 W-2s and/or 1099s.
For questions, contact the Vermont Department of Taxes, Taxpayer Services Division at 802-828-2551 or email tax.business@vermont.gov.
W-2s are due by January 31 for the preceding calendar year. When filing Form WHT-434, Annual Withholding Reconciliation, you must also file W-2s for all employees working in Vermont. W-2s must be submitted electronically.
Use myVTax to file your W-2s and/or 1099s
For questions, contact the Vermont Department of Taxes, Taxpayer Services Division at 802-828-2551 or email tax.business@vermont.gov.
Find your Vermont tax account numbers
If you are a new business, register online with the VT Department of Taxes to retrieve your account number. You may also register by mail or fax using Form BR‐400, Application for Business Tax Account.
If you already have a VT Withholding Account Number, you can find this from the VT Department of Taxes or by calling the agency at 802-828-2551.
If you are a new business, register online with the VT Department of Labor to retrieve your account number and tax rate.
If you already have a VT UI Account number and tax rate, you can find this on the Contribution Rate Notice mailed by the VT Department of Labor. If you are unsure, you can contact the agency at 802-828-4344.
Vermont employers are subject to a 0.44% tax on employees’ wages. All wages subject to Vermont income tax will also be subject to the Child Care Contribution (CCC) tax. Square Payroll will support this new program by calculating and collecting the tax, as well as making the quarterly payment and filing on your behalf. For more information on the program, visit the state website.
Vermont CCC Tax will automatically be calculated on any run with a pay date on or following July 1, 2024. You can choose to pay the full liability of the tax or pass on a portion of the tax to your employees.
To adjust your Vermont CCC Tax contributions:
- Sign in to your Square Dashboard and select Staff & payroll > Payroll > Tax info.
- For Vermont Child Care Contribution Tax, select one of the two options:
a. Selecting I will pass on a portion of the tax to my employees at the rate of 0.11% and my employees are aware that this tax will be deducted from gross pay applies the tax of 0.11%to all W-2 employees.
b. Selecting I will pay the full liability of 0.44% tax on qualified employee wages will not deduct taxes from employees, and you will see the 0.44% as an employer tax. - Select Save changes.
While not required, we recommend informing your employees from the tax if you elect to withhold from their pay. The tax will appear on the employee’s pay stub under VT Child Care for Contribution Tax.
Understand Vermont Nonresident Percentage
Employees who do not live in Vermont but work in Vermont may be subject to lower withholding tax rates if they are also employed in another state.
Square Payroll will set each employee’s non-resident percentage to 0% by default, which means that we assume the employee only worked in Vermont, and they will be taxed at the same rates as Vermont residents. However, if you know the employee only worked partially in Vermont, and earned wages in another state, you may update the non-resident percentage on the team member’s payroll profile to adjust taxes accordingly.
For example, if your non-resident employee only worked 20 out of 40 hours in Vermont (and the remaining 20 hours in another state), you would enter 50% in the non-resident percentage field.
Visit the VT Department of Taxes website for more information on non-resident withholding.