Payroll Vermont Unique Aspects of Vermont Payroll Law and Practice
Below is a MRR and PLR article in category Business -> subcategory Other.
Payroll in Vermont: Key Aspects of Vermont Payroll Law and Practice
Summary:
Managing payroll in Vermont involves understanding specific state laws and regulations. This article highlights important details regarding tax withholding, unemployment insurance, wage and hour laws, and child support withholding.
Keywords:
Payroll Vermont, Vermont payroll, Vermont taxes, Vermont Income Tax, Vermont payroll service, Vermont Unemployment Insurance, Vermont Child Support
Tax Withholding
The Vermont Department of Taxes is responsible for state income taxes deducted from payroll:
- Location: 109 State Street, Montpelier, VT 05609-1401
- Contact: (802) 828-2551
- Website: [Visit Vermont.gov](http://vermont.gov/)
Key Points:
- Use the "W-4VT, Vermont Employee Withholding Allowance Certificate" form for state tax withholding or the federal W-4 form.
- Section 125 cafeteria plans are not taxable for income tax but are for unemployment insurance.
- 401(k) deferrals are not taxed for income but are for unemployment.
- Supplemental wages are taxed at a flat rate of 7.2%.
- Vermont does not allow magnetic media reporting for W-2s.
Unemployment Insurance
The Vermont Department of Employment and Training manages unemployment insurance:
- Location: 5 Green Mountain Dr., P.O. Box 488, Montpelier, VT 05601-0488
- Contact: (802) 828-4344 or (877) 214-3331
- Website: [Visit det.state.vt.us](www.det.state.vt.us/)
Key Points:
- The taxable wage base for unemployment is up to $8,000.
- Employers can optionally report quarterly wages on magnetic media.
- Unemployment records must be kept for six years and should include details such as employee names, social security numbers, and wage information.
Wage and Hour Laws
The Department of Labor and Industry enforces Vermont's wage and hour laws:
- Location: National Life Bldg., Drawer 20, Montpelier, VT 05620-3401
- Contact: (802) 828-2157
- Website: [Visit labor.vermont.gov](http://www.labor.vermont.gov/)
Key Points:
- Minimum wage is $7.00 per hour.
- Overtime is one and a half times the regular rate after 40 hours per week.
- New hires and rehires must be reported within 20 days.
- No compulsory direct deposit: employers must provide detailed pay stubs.
- Pay frequency must be at least weekly unless otherwise noted by the employer.
- Final pay must be issued within three working days for involuntary terminations and by the next payday (or next Friday) for voluntary terminations.
Child Support Withholding
Managed by the Office of Child Support under the Agency of Human Services:
- Location: 103 S. Main St., Waterbury, VT 05671-1901
- Contact: (800) 786-3214
- Website: [Visit ocs.state.vt.us](www.ocs.state.vt.us/)
Key Points:
- Withholding begins 10 days after receiving the order or by the next payday.
- Payments should be sent within 7 days of payday.
- Termination notices must be sent within 10 days.
- Maximum administrative fee is $5 per month, adhering to federal limits.
Note: This guide may not reflect the latest changes in laws and regulations, which are subject to update.
You can find the original non-AI version of this article here: Payroll Vermont Unique Aspects of Vermont Payroll Law and Practice.
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