Vermont Payroll Tax Registration

If you are an employer in Vermont who has recently hired an employee, you will need to register for payroll taxes with the Vermont Department of Taxes. This registration process ensures that you are compliant with state tax laws and can properly withhold and remit taxes on behalf of your employees.

How Vermont Payroll Registration Works

There are 2 payroll tax setup tasks you may need to complete in Vermont to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Vermont agencies or use Mosey to do it.

Vermont Unemployment Insurance Setup for LLP, LLC, Corporation

Employers with employees in Vermont must register with the Vermont Department of Labor for an Unemployment Insurance account. Note: Nonprofits may elect to finance the cost of unemployment benefits on a reimbursable basis by submitting the request in writing to the Department of Labor.

1. Register for an Unemployment Insurance Account
   

   If you are reporting 250 employees or less, you should sign up to use the Vermont Internet Tax and Wage System. Large employers with more than 250 employees and 3rd Party/payroll services must complete and email the following forms to the Employer Services Unit at Labor.UIandWages@vermont.gov: (1) Registration Form, (2) Memorandum of Understanding, and (3) Power of Attorney.

2. Elect Reimbursable Payment Method (Nonprofits Only)
   

   Submit your reimbursable status request in writing to the Department of Labor within 30 days from registering for an Unemployment Insurance account.

3. Configure Payroll with Unemployment Insurance Information
   

   Add your Employer Registration Number and Unemployment Insurance contribution rate to your payroll provider.

Vermont Withholding Tax Setup for LLP, Corporation, LLC

Employers with Vermont employees must register with the Department of Taxes for a withholding tax account.

1. Register for a Withholding Tax Account
   

   Visit myVTax to sign up for a withholding tax account. After signing up, click the bar "Need An Account? Click Here to Register" on the myVTax homepage.

2. Configure Payroll with Your Withholding Account ID
   

   Provide your withholding tax account ID to your payroll provider.

Vermont's Payroll Registration Agencies

• Vermont Department of Labor
• Vermont Department of Taxes