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If you are operating your business in the state of Vermont, there are a number of things you should know before you provide pay stubs to employees and contractors.

Below are laws and regulations applicable to employers in Vermont for running payroll and providing pay stubs.

vermont

Pay stub regulations in Vermont

1. Are pay stubs required by law in Vermont?

Employers in Vermont must provide their employees with pay stubs every payday.

2. How often do you need a pay stub in Vermont?

You will need to pay your exempt employees at least weekly or semimonthly and monthly (upon written notice). As pay stubs are mandatory in Vermont, you will need to provide pay stubs every time you pay your employees.

3. What information can be included on a pay stub in Vermont?

The following information must be included in employee pay stubs:

  • The total hours worked
  • Hourly rate
  • Gross pay
  • Each deduction fully itemized.

4. Does Vermont have a state income tax?

Yes, state income taxes are applicable to employees in the state of Vermont.

5. Are there any other taxes applicable to Vermont?

No. There are no local taxes in addition to federal and state income taxes applicable to employees in the state of Vermont.

Information needed to generate pay stubs

To provide employees with accurate pay stubs, the information below is required.

  • The employee's exemption status from state withholding
  • Information such as filing status, total allowances, nonresident percentage, and additional state withholding amount.

Vermont wage and hour laws

Employers in Vermont state must adhere to wage and hour regulations, ensuring that non-exempt employees receive essential entitlements such as minimum wage, overtime compensation, mandated meal, and rest breaks, as well as accrued paid time-off benefits.

The following aspects are governed by law:

  • Minimum wage
  • Overtime pay
  • Meal breaks
  • Rest breaks
  • Paid time off and leave

Minimum wage

Employers in Vermont are mandated by law to compensate employees with no less than the designated minimum hourly wage as prescribed by legislation.

If an employer in Vermont has two or more employees, they are required to adhere to a basic minimum hourly rate of $13.67 in 2024. Additionally, Vermont's minimum wage automatically adjusts to match the federal minimum wage rate if it surpasses the state's set minimum.

Overtime pay

When employees work more than 40 hours in a workweek, employers are required to provide compensation at a rate of one and a half times the regular wage for those additional hours.

Meal break

Employees must be provided with a "reasonable opportunity" to take meals and rest breaks. If this opportunity lasts less than 20 minutes, it must be compensated as paid time.

Rest break

Rest breaks are not mandated for employers in Vermont.

Paid time off and leave

Employers in Vermont are obligated to provide their employees with both mandated and optional leave benefits.

Required LeaveNon-Required leave
paidUnpaidPaid or Unpaid
Sick leave - 1 hour for every 52 hours of work.The Family and Medical Leave Act (FMLA) is federal legislation that allows eligible employees to take up to 12 weeks of unpaid leave.Vacation leave
Jury Duty leaveBereavement leave
Military leave -up to 15 daysHoliday leave
Crime Victim leaveVoting leave

Vermont state payroll taxes 2024

In Vermont, payroll taxes are categorized as follows:

  • Vermont Personal Income Tax(PIT)
  • Vermont State Unemployment Insurance (UI) tax
  • Vermont Health Care Fund Contributions

Vermont Personal Income Tax(PIT)

In Vermont, the state tax rate structure contains four brackets (3.35%, 6.60%, 7.60%, and 8.75%), called Vermont state tax brackets. These brackets are assigned based on an individual's income level and filing status, which might also include Single, Married Filing Jointly, Married Filing Separately, and Head of Household.

Vermont State Unemployment Insurance (UI) tax

The implementation of the State Unemployment Tax Act (SUTA) targets resource people dealing with unemployment by presenting them with unemployment benefits. This program enables states to accumulate funds, which are eventually applied for administering unemployment insurance benefits to those currently without employment. SUTA costs in Vermont range from 0.40% to 5.40% are applicable.

The Vermont Department of Labor has declared the 2024 Unemployment Insurance (UI) Taxable Wage Base. Starting January 1, 2024, it will upward push from $13,500 to $14,300, marking an $800 growth.

Vermont tax filing 2024

Report of New Employees

In Vermont, employers are required to report new hires to the Vermont New Hire Reporting Center within 10 days of their employment start date. This can be accomplished by submitting Form C-61.

Report of Independent Contractors

In Vermont, employers are not required to report new hire contractors.

How to report employees' new hire in Vermont ?

You have the flexibility to utilize any of the following choices for reporting new hires.

OnlineMailFax
Employees New Hire ReportVermont Department of Labor
Address Information:
5 Green Mountain Drive
P.O. Box 488
Montpelier, VT 05601
Direct Phone: 802-828-4344
Email: Labor.UIAndWages@vermont.gov
Fax 1: 802-828-4022

Filing a Quarterly wage and tax Report(form C-101 )

All Vermont employers subject to paying Unemployment Insurance (UI) for their employees are required to submit a quarterly wage and contribution report. Additionally, Vermont mandates electronic filing for all employers.

For Wages Paid DuringDue Date
Quarter 1(January - March)April 30
Quarter 2(April - June)July 31
Quarter 3(July - September)October 31
Quarter 4(October - December)January 31

Filing personal income tax(form IN-111)

As per Vermont law, the state's personal income tax filing season adheres to the federal calendar. Consequently, taxpayers can submit their 2023 personal income tax return and settle any owed tax by April 15, 2024, without incurring penalties or interest.

Vermont Health Care Fund Contributions quarterly filing

Employers required to pay the assessment must do so quarterly, on or before the 25th day of the month following the end of each quarter. This implies that it is due on or before:

For Wages Paid DuringDue Date
Quarter 1(January - March)April 25
Quarter 2(April - June)July 25
Quarter 3(July - September)October 25
Quarter 4(October - December)January 25

Have all the information handy?

With SecurePayStubs, you can calculate accurate federal and Vermont state taxes for your employees and generate pay stubs securely.

Create a paystub now

Processing payroll manually is complex

As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.

With SecurePayStubs, our paystub generator enables you to swiftly generate pay stubs for your employees with precise calculations for federal and Vermont state taxes, as well as for independent contractors, all in under 2 minutes.

Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.

Spend less time generating pay stubs and more on your business growth.

Create a paystub now

This article has been updated from its original publication date of March 28, 2024.