Vermont New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an Employer Identification Number (EIN, aka, FEIN) with the IRS online .
- To read more about how to apply for an EIN, read our article, “Your Step-by-step Guide on How to Apply for EIN.”
- You will be assigned a unique nine-digit number to identify your business for your federal taxes by the IRS. To learn more, read, “What Is an FEIN?”
- Although it is not required, we suggest you register for the EFTPS (Electronic Federal Tax Payment System).
- EFTPS is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot Software. To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of Vermont Tax Accounts:
- New employers in Vermont need to register their business for a payroll withholding account for state income taxes (SIT).
- You can register online for this account via the Vermont Secretary of State.
- New employers in Vermont will need to register online with the Vermont Department of Labor for a state unemployment insurance (SUI) account.
- All employers are required to file their quarterly UI Wages and Contribution Report electronically. You can register for electronic services by going to Employer Online Services and selecting “Register for UI Quarterly Tax Reporting.”
- Most new employers in Vermont will have a new employer SUTA rate of 1% for 2023.
- New employers classified with the NAICS code 236 Construction, 237 Heavy/Civil Engineering, 238 Specialty Trades foreign construction will be assigned a different new employer rate. For more information, visit the Vermont Department of Labor.
- You will be assigned a new State Unemployment Tax Assessment rate every year after you have become an established employer.
- To learn more about SUTA, read our article, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee work verification in the USA.
- This is a two-part form. The first section is filled out by the employee and the second part is to be filled out by the employer. To learn more, read, “Form I-9 In a Nutshell.”
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
- Employees need to fill out Form W-4, Employee’s Withholding Certificate for federal income taxes (FIT).
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
Form W-4VT is the Vermont Employee’s Withholding Allowance Certificate for state income tax (SIT).
- Vermont employers need to report new employees online within 10 days of hire or rehire with the Vermont Department of Labor.
- To learn more, read, “What Is New Hire Reporting?
- Vermont’s minimum wage is $13.18 per hour in 2023.
- By law, you are required to post the Vermont minimum wage poster for your employees.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with government agencies for more requirements.
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