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Taxes
Vermont Payroll Taxes 2026: Complete Overview for Employers
Vermont graduated 3.35%–8.75% income tax, SUI on $14,300, and all employer obligations.
Practical, accurate resources for Vermont small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
Vermont graduated 3.35%–8.75% income tax, SUI on $14,300, and all employer obligations.
How to register with Vermont Department of Taxes and Vermont Department of Labor as a new Vermont employer.
New employer rate 1.0%, experienced range 0.40%–5.40%, wage base $14,300.
Vermont minimum wage is $14.01/hr. Vermont’s minimum wage is $14.01/hr, adjusted annually for CPI. Tipped employees may be paid $7.01/hr (50% of minimum wage).
Weekly pay required. Final pay: Final wages for terminated employees are due within 72 hours of separation..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Vermont-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Vermont new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Vermont recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Vermont small businesses.
Federal OT after 40 hrs/week, Vermont overtime rules, exemptions, salary thresholds.