Submitting payroll taxes in Vermont

After you withhold the tax from your employee, you are responsible for paying the amount you withheld to the state. You can file and pay the withholding amount online. For more information on paying the withholding amount, refer to the Vermont Department of Taxes.

The submission process for payroll taxes in Vermont is streamlined to facilitate easy compliance for employers. Annually, employers must file Form WHT-434, which is the Annual Withholding Reconciliation form.

This form, due by January 31 each year, is crucial as it reconciles the amount of Vermont income tax withholding reported during the previous year. For employers who issue 25 or more W-2 and/or 1099 forms, electronic filing is mandatory, promoting efficiency and environmental friendliness.

Payroll tax due dates

For monthly filers in Vermont, keeping track of due dates is essential to avoid penalties. Below is a table that outlines the specific due date for monthly filers:

Tax type	Filer type	Tax month	Due date
Withholding Tax	Monthly Filers	January	February 24, 2025 at 23:55
		February	March 25, 2025 at 23:55
		March	April 25, 2025 at 23:55
		April	May 27, 2025 at 23:55
		May	June 25, 2025 at 23:55
		June	July 25, 2025 at 23:55
		July	August 25, 2025 at 23:55
		August	September 25, 2025 at 23:55
		September	October 27, 2025 at 23:55
		October	November 25, 2025 at 23:55
		November	December 26, 2025 at 23:55
		December	January 26, 2026 at 23:55

It's important for employers to note this date and ensure that all filings are completed on time. For those with different filing frequencies, checking the Vermont Department of Taxes website or contacting them directly is recommended for the most accurate and up-to-date information.

Paying your Vermont workers’ compensation

In addition to paying Vermont payroll taxes, employers must also pay for workers’ compensation, even if they only have one Vermont employee.

Workers’ compensation is a type of insurance that covers wages and medical benefits for employees who are injured while performing their job. The state of Vermont provides information online to help you find a qualified commercial carrier. Employers should verify that their workers’ compensation insurance complies with the state’s regulations for workers’ compensation.

In Vermont, workers' compensation rates are calculated based on the worker's pre-injury average weekly wage. Here's a breakdown of how benefits are determined:

Benefit Type	Description
Temporary Total (TT) Benefits	For injuries before July 1, 1994: Two-thirds of the average weekly wage. For injuries on or after July 1, 1994: Uses a more complex formula.
Temporary Partial (TP) Benefits	Paid at the greater compensation rate minus wages earned during recovery or two-thirds of the difference between the worker's usual full-time pay and their part-time earnings during recovery.
Permanent Partial (PP) Benefits	For injuries before April 1, 1995: Calculated based on the specific body part injured. For injuries on or after April 1, 1995: Based on 'whole person' impairment, using the American Medical Association’s rating system.
Permanent Total (PT) Benefits	Provided for a minimum of 330 weeks. Benefits continue if the worker remains unable to return to gainful employment after this period.
Additional Provisions	All periodic benefits are subject to state minimum and maximum amounts, which vary for injuries before and after July 1, 1986. An additional $20 per week is paid for each dependent child under 21 and applies to both temporary partial disability and temporary total disability benefits.