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Version: 1.7.3

Vermont Payroll Tax Compliance

Employers in Vermont must meet three key payroll compliance obligations: state income tax withholding, unemployment insurance (UI), and new hire reporting.

Each requirement comes with its own forms, deadlines, and reporting rules established by state agencies. The sections below provide a clear overview of these obligations.

Vermont Withholding Tax Requirements​

Vermont employers are required to withhold state income tax from employee wages and file returns with the Vermont Department of Taxes.

The state requires the following forms to report withholding taxes:

Form WHT-436​
  • Filed quarterly to report state income tax withheld, payments made during the quarter, child care, and health care contributions
  • Due on the 25th day of the month following the end of each quarter — April 25, July 25, October 25, and January 25
  • Required even if no tax is due, if the employer is active and registered.
  • Refer to Form HC-1 worksheet to calculate Adjusted Full-Time Equivalent Employees and Total Health Care Contribution Due. HC-1 is not filed but must be retained for records.
Note:

TaxBandits API supports the automation of Form WHT-436. See how it works

Form WHT-430​
  • Used to submit withholding tax payments (deposit form).
  • Filed based on the employer’s assigned payment frequency.
Form WHT-434​
  • Filed annually as the reconciliation return.
  • Due January 31 of the following year

Vermont Unemployment Insurance (UI) Requirements​

Employers are liable for Vermont unemployment insurance taxes, administered by the Vermont Department of Labor.

The state requires the following forms to report UI taxes for each quarter:

Form C-101​

  • Employer’s Quarterly Wage and Contribution Report used to report total wages, taxable wages, and UI contributions.
  • Due quarterly on April 30, July 31, October 31, and January 31.
  • Employers must file even if no wages were paid (zero wage reports).

Form C-147​

  • This additional report form can be used when an employer has more employees than the original Quarterly Wage & Contribution Report (Form C-101) form can accommodate.

Vermont New Hire Reporting​

  • Employers must report all newly hired and rehired employees to the Vermont Department of Labor using Form C-63 within 10 days of the employee’s first day of work.
  • Multi-state employers may report new hires to each state where employees are hired or designate a single reporting state under federal guidelines.