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Vermont Withholding: What you need to know

The Vermont income tax law requires that employers withhold state income tax from the wages of resident and nonresident employees. Withholding applies to compensation paid by employers to employees including salary, bonus, vacation allowance, and commission. Vermont generally applies federal law to determine whether withholding is required on fringe benefits such as deferred compensation plans and cafeteria plan contributions. Vermont has conformed its tax law to the amendments made to the Internal Revenue Code by the federal healthcare reform law and subsequent Internal Revenue Service rules. As a result, the cost of employer-provided coverage for dependent children is tax free through the end of the year in which the child turns 26.
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Determining income tax withholding. Employers should have all employees complete Form W-4VT. Employers may use the information from federal Form W-4 if no Vermont form is submitted. If a federal W-4 used for state withholding indicates an additional amount of federal withholding for each pay period on Line 6, Vermont withholding should be increased by 27 percent of the extra federal withholding. Employees who have adjusted their federal withholding in anticipation of Child Tax Credit or other credits that do not affect Vermont tax and employees who have entered into civil unions will not have the correct Vermont tax withheld unless they complete Form W-4VT.
Determining income tax for civil union members. Vermont income tax of a civil union partner is computed in the same manner as if the partners were married. An employee in a civil union may use a W-4VT form to show the filing status and number of withholding allowances that result in the correct Vermont tax. As with ...

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Vermont Withholding Resources

Withholding Products

Taxation and Withholding Explained Webinar Recording
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BLR Webinar: "Employment Taxes in Multiple States: Step-by-Step Calculation and Reporting Strategies""
Payroll Webinar Recording
BLR Webinar: "Payroll: How to Legally Handle Tax Levies and Garnishments""
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Claim Your Free Copy of Top 100 FLSA Overtime Q&As

We’ve compiled a list of the 100 most commonly asked questions we have received on the federal Fair Labor Standards Act (FLSA) overtime regulations.
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This report, "Top 100 FLSA Q&As", is designed to provide you with an examination of the federal FLSA overtime regulations in Q&A format, including valuable tips for bringing your workplace into compliance in an affordable manner.

At the end of the report, you will find a list of state resources on wage and hour issues. This report includes practical advice on topics such as:
  • FLSA Coverage: How FLSA regulations apply to all employers and any specific exemptions from the overtime requirements
  • Salary Level: Qualifying for exemptions and nonexempt employees
  • Deductions from Pay: Deducting for violations, disciplinary reasons, sick leave, or personal leave

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