Vermont New Employer Registration: Step-by-Step Guide

Last reviewed: July 2026

Hiring your first employee in Vermont starts a short list of registration requirements at the federal and state level. Vermont adds a couple of wrinkles other states don't have: its own withholding certificate and a new-hire deadline shorter than the federal standard. Here's the process in order.

Registration Overview

Every new Vermont employer needs:

• A federal Employer Identification Number (EIN)
• A Vermont withholding account with the Department of Taxes
• A Vermont SUI account with the Department of Labor
• Workers' compensation insurance, required from employee number one
• New hire reporting set up for every future hire

Step 1: Get Your Federal EIN

Apply for a free EIN at irs.gov/ein. The online application takes about 15 minutes, and you receive the number immediately. You'll need it for every registration that follows.

Step 2: Register with Vermont Department of Taxes

Register for a withholding account with the Vermont Department of Taxes through the myVTax portal. This lets you withhold Vermont state income tax from employee paychecks. Every Vermont employee also needs to complete Form W-4VT, the state's Employee's Withholding Allowance Certificate, in addition to the federal W-4.

Step 3: Register for SUI

Register with the Vermont Department of Labor for an unemployment insurance account. The SUI taxable wage base is $15,400 per employee for 2026, and the standard new employer rate is 1.0% for most non-construction industries in the rate year beginning July 1, 2026. Vermont's UI rate year runs July through June rather than by calendar year, so check the current table whenever the rate year changes.

Step 4: Workers' Compensation Insurance

Vermont requires workers' compensation insurance starting with your very first employee, covering full-time, part-time, seasonal, and temporary workers with almost no exceptions. Purchase a policy from a private insurance carrier and keep it current. The Workers' Compensation Division of the Vermont Department of Labor oversees compliance and can penalize employers who operate without coverage.

Step 5: New Hire Reporting

Report every new or rehired employee within 10 days of their first day of work, through the Vermont Department of Labor's Employer e-Services portal. That's tighter than the 20-day federal standard used in many other states, so build it into your onboarding checklist from day one. You'll need the employee's name, address, Social Security number, start date, and your EIN.

Once registrations are complete, use our paycheck calculator to check net pay, and send new hires to our W-4 helper for the federal form, remembering the W-4VT is a separate requirement.

Frequently Asked Questions

Where do Vermont employers register for unemployment insurance?

Vermont employers register for UI (unemployment insurance) with the Vermont Department of Labor (VDOL). Registration is completed online and should happen as soon as you hire your first employee.

Where do Vermont employers register for state income tax withholding?

Vermont employers register for state income tax withholding with the Vermont Department of Taxes through the myVTax portal. You will receive a state employer withholding account number used on all tax filings and deposits.

Do I need to register before running my first payroll in Vermont?

Yes. You must have your Vermont employer account number(s) before filing or depositing state payroll taxes. Register with the Vermont Department of Labor (VDOL) and the Vermont Department of Taxes as soon as you hire your first employee.

Is workers' compensation insurance required when registering as a Vermont employer?

Yes. Vermont requires workers' compensation insurance for virtually every employer with at least one employee, including full-time, part-time, seasonal, and temporary workers. Coverage is overseen by the Workers' Compensation Division of the Vermont Department of Labor.