Understanding your paycheck is crucial, and our Vermont Payroll Tax Calculator simplifies the process. Follow these easy steps to get an accurate estimate of your net pay:
Filing Status | Taxable Income Bracket | 2025 Income Tax Rate / Calculation |
---|---|---|
Single / MFS* | $0 - $3,825 | 0.00% |
Single / MFS* | $3,825 - $53,225 | 3.35% of excess over $3,825 |
Single / MFS* | $53,225 - $123,525 | $1,654.90 + 6.60% of excess over $53,225 |
Single / MFS* | $123,525 - $253,525 | $6,294.70 + 7.60% of excess over $123,525 |
Single / MFS* | $253,525 or greater | $16,174.70 + 8.75% of excess over $253,525 |
Married Filing Jointly / QW** | $0 - $11,475 | 0.00% |
Married Filing Jointly / QW** | $11,475 - $93,975 | 3.35% of excess over $11,475 |
Married Filing Jointly / QW** | $93,975 - $210,925 | $2,763.75 + 6.60% of excess over $93,975 |
Married Filing Jointly / QW** | $210,925 - $315,475 | $10,482.45 + 7.60% of excess over $210,925 |
Married Filing Jointly / QW** | $315,475 or greater | $18,428.25 + 8.75% of excess over $315,475 |
* MFS = Married Filing Separately
** QW = Qualifying Widow(er)
Note: Use official VDT withholding methods (Publication GB-1210) for precise calculations based on W-4VT allowances.
Before you pay your first employee, you need to lay the groundwork by registering with the government and setting up reporting systems. These steps are non-negotiable for legally employing workers in Vermont.
Every U.S. business hiring employees needs an FEIN from the IRS. This unique nine-digit number is your federal tax ID. You’ll need it for filing federal employment taxes (Forms 941, 940, W-2), opening business bank accounts, and registering with Vermont state agencies. Applying online via the IRS website is usually the quickest way.
You’ll need to register with two key Vermont agencies:
Vermont Department of Taxes (VDT):
myVTax
system. You can also use Form BR‐400 (Application for Business Tax Account) via mail/fax. Verify your account is active for withholding even if registered for other taxes.Vermont Department of Labor (VDOL):
Separate from taxes, you must report all newly hired and rehired employees (returning after 60+ days) to the VDOL. This helps enforce child support and prevent fraud.
Getting these registrations and the new hire process right from the start is crucial for avoiding immediate compliance issues.
You must withhold Vermont SIT if you withhold federal income tax. This applies to Vermont residents (wherever they work) and non-residents working in Vermont.
myVTax
portal. This applies if you file 10+ W-2s/1099s, are a semi-weekly depositor, use a payroll service, or remitted over $100k in VT withholding last year. Paper filing is rare.myVTax
if 10+ W-2s/1099s.Tax Type | Reporting Form(s) | Frequency | Due Dates |
---|---|---|---|
SIT Withholding | WHT-436 (Quarterly) | Quarterly (All) | Apr 25, Jul 25, Oct 25, Jan 25* |
SIT Withholding | WHT-434 (Annual) | Annual (All) | Jan 31* (Transmits W-2s/1099s) |
Payment (myVTax) | — | Quarterly, Monthly, or Semiweekly | Varies by schedule (see above) |
SUI | C-101 / VITWS (Quarterly) | Quarterly | Apr 30, Jul 31, Oct 31, Jan 31* |
CCC | WHT-436 (Quarterly) | Quarterly Reporting; Payment mirrors SIT | Reporting: Apr 25, Jul 25, Oct 25, Jan 25*. Payment: Same as SIT. |
HCFCA | WHT-436 (Quarterly - Part III) | Quarterly | Apr 25, Jul 25, Oct 25, Jan 25* |
*Adjusted for weekends/holidays.
Form | Name | Purpose | Frequency/Requirement |
---|---|---|---|
W-4VT | Employee's Withholding Allowance Certificate | Determine VT SIT allowances. | Recommended annually/on change. Keep 4 yrs post-termination. |
WHT-434 | Annual Withholding Reconciliation | Annually reconcile SIT & transmit W-2s/1099s to VDT. | Annually (Due Jan 31). ALL employers. Mandatory e-file if 10+. |
WHT-436 | Quarterly Withholding Recon., CCC & HCFCA Report | Quarterly reconcile SIT; Report/Pay CCC; Report/Pay HCFCA. | Quarterly (Due Apr 25, etc.). ALL employers. Mandatory e-file most. |
HC-1 | HCFCA Worksheet | Calculate quarterly HCFCA liability. | Quarterly (as needed). Keep 3 yrs; DO NOT SUBMIT. |
HC-2 | Declaration of Health Care Coverage | Document coverage status of employees declining employer plan. | Annually from decliners. Keep 3 yrs; DO NOT SUBMIT. CRITICAL. |
C-101 / VITWS | Quarterly Wage & Contribution Report (SUI) | Report quarterly wages & calculate SUI tax. | Quarterly (Due Apr 30, etc.). Mandatory e-file via VITWS. |
New Hire Report | (Online Portal / Form C-61) | Report new/rehired employees to VDOL. | Within 10 days of hire. Mandatory e-reporting if >10 reports. |
Funded entirely by employers, SUI provides temporary benefits to eligible unemployed workers.
Effective July 1, 2024, this mandatory tax funds Vermont’s Child Care Financial Assistance Program.
myVTax
, using Form WHT-436. The same deadlines and rules apply.This assessment applies to some employers to support state healthcare costs.
myVTax
with WHT-436.Alongside Vermont rules, you must handle federal taxes.
A. Federal Income Tax Withholding (FITW)
Withhold federal income tax based on the employee’s Form W-4 (use the current version) and IRS Publication 15-T methods.
B. FICA Taxes (Social Security & Medicare)
These fund Social Security and Medicare. Both have employer and employee components.
C. Federal Unemployment Tax Act (FUTA)
Paid only by the employer to fund unemployment administration.
D. Federal Tax Deposits & Reporting
Tax Type | Employee Rate | Employer Rate | Total Rate | 2025 Wage Base Limit | Notes |
---|---|---|---|---|---|
Social Security | 6.2% | 6.2% | 12.4% | $176,100 | Limit adjusted annually. |
Medicare | 1.45% | 1.45% | 2.9% | No Limit | Applies to all covered wages. |
Additional Medicare | 0.9% | 0.0% | 0.9% | Wages > $200,000 | Employee only; no employer match. |
FUTA (Gross) | 0.0% | 6.0% | 6.0% | $7,000 | Employer only. Net rate usually lower. |
FUTA (Net Rate)* | 0.0% | 0.6% | 0.6% | $7,000 | Assumes max 5.4% credit (VT eligible if SUI timely). |
Beyond taxes, follow VDOL rules on pay, hours, and workplace conditions. If state and federal laws differ, the one more beneficial to the employee applies.
Maintaining detailed payroll records is legally required by federal (FLSA, IRS) and state (VDOL, VDT) agencies.
Given the overlapping rules, keeping core tax and payroll records for at least four years is a good general practice, but always track specific retention periods for forms like I-9s and HC-2s.
You have several options for actually running your payroll.
A. Doing It Yourself (DIY) / Manual Payroll
Calculating everything by hand using spreadsheets or paper.
B. Using Payroll Software (Like TimeTrex!)
Automated platforms handle calculations, tax filings/deposits, pay stubs, and record-keeping.
C. Hiring an Accountant / CPA Firm
Payroll processing as part of broader financial services (bookkeeping, tax strategy).
D. Partnering with a Professional Employer Organization (PEO)
Co-employment model where PEO handles payroll, taxes, benefits admin, and HR compliance.
Managing payroll in Vermont requires diligence. You need to master state income tax withholding (using W-4VT), SUI (and its impact on FUTA), the CCC tax, and the administratively intensive HCFCA (especially Form HC-2 collection). Add federal rules, wage/hour laws (like the current $35,568 overtime threshold), pay timing, new hire reporting, and multi-agency record-keeping, and it’s clear that compliance demands focus.
Staying informed about changes from VDT, VDOL, IRS, and US DOL is crucial. The risks of non-compliance – penalties, interest, legal issues, and damaged employee trust – are simply too high for small businesses to ignore.
Choosing the right payroll method is key:
Payroll isn’t just paperwork; it’s a critical business function. Whether you invest in robust software like TimeTrex, engage expert professionals, or (very carefully) manage it in-house, dedicating the necessary resources to ensure accuracy and timeliness is fundamental to operating legally and sustainably in Vermont. Regular internal checks can help catch errors early. Invest wisely in your payroll process – it’s an investment in your business’s health and future.
Agency | Poster Topic | Required For |
---|---|---|
VDOL | Unemployment Insurance, Pregnant Workers, Sick Time | All Employers |
VDOL | Min. Wage, Parental/Family Leave, Sexual Harassment | Most Employers |
VDOL | Workers' Comp Notices | Employers subject to WC law / Size thresholds |
VDH | Workplace Smoking | All Employers |
US DOL | FLSA (Fed Min Wage), OSHA, USERRA, EPPA | Most Employers |
US DOL | FMLA | Covered Employers (50+ employees) |
EEOC | EEO is the Law / Know Your Rights | Most Employers w/ 15+ employees (lower for some) |
Disclaimer: The content provided on this webpage is for informational purposes only and is not intended to be a substitute for professional advice. While we strive to ensure the accuracy and timeliness of the information presented here, the details may change over time or vary in different jurisdictions. Therefore, we do not guarantee the completeness, reliability, or absolute accuracy of this information. The information on this page should not be used as a basis for making legal, financial, or any other key decisions. We strongly advise consulting with a qualified professional or expert in the relevant field for specific advice, guidance, or services. By using this webpage, you acknowledge that the information is offered “as is” and that we are not liable for any errors, omissions, or inaccuracies in the content, nor for any actions taken based on the information provided. We shall not be held liable for any direct, indirect, incidental, consequential, or punitive damages arising out of your access to, use of, or reliance on any content on this page.
Trusted By
Join our ever-growing community of satisfied customers today and experience the unparalleled benefits of TimeTrex.
Strength In Numbers
Time To Clock-In
Experience the Ultimate Workforce Solution and Revolutionize Your Business Today
Saving businesses time and money through better workforce management since 2003.
Copyright © 2025 TimeTrex. All Rights Reserved.