Vermont Wage and Payroll Tax Facts

Miscellaneous Vermont Tax Information

Reciprocal Agreement(s)

Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Vermont currently has no reciprocal agreements with any other states.

This doesn’t mean, however, that interstate workers living in Vermont pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.

Paid Sick Leave (PSL) Taxes

The state of Vermont doesn’t require employers to collect PSL taxes, but it does have an Earned Sick Time (EST) program providing such leave for eligible employees:

Vermont EST Details
Covered Employers	All
Covered Employees	All full-time and certain part-time employees (with limited exceptions)
Accrual Method(s)	One hour per 52 hours worked
Annual Use Maximum	24 hours
Carryover Maximum	40 hours
Annual Accrual Maximum	40 hours (unless the employer opts to give more)
Probationary Period	One year (optional)
Frontloading Allowed	Yes
FAQs	Earned Sick Time Law FAQs

Paid Family and Medical Leave (PFML) Taxes

The state of Vermont doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.

Child Care Financial Assistance Taxes

Vermont's Child Care Financial Assistance Program subsidizes childcare costs for families. The program is primarily funded via employer contributions, but employers can choose to cover 25% of those Child Care Contributions (CCCs) via mandatory deductions from employee wages.

Vermont Child Care Financial Assistance Details
Covered Employers	All
Covered Employees	All
Tax Rate	0.44% of all employee wages (up to 0.11% of which can be withheld from employee wages)
FAQs	Act 76 FAQs

Health Care Fund Taxes

Employers in Vermont who don't offer employees a sponsored health care plan must pay health care fund contributions.

Vermont Health Care Fund Details
Covered Employers	All who don't offer a privately sponsored health care plan to employees.
Wage Base Limit	None
Maximum Annual Contribution Rate	$268.24 per employee
FAQs	Health Care Fund Contribution Assessments

Vermont Employer Registration

The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the Department of Revenue for withholding tax topics and the Department of Labor for unemployment tax topics.

Registration Details	Department of Revenue	Department of Labor
Phone	(802) 828-2551	(802) 828-4344
Online Registration	myVTax Login Page	Employer Registration Application
Registration Form	Form BR-400	Form C-1
Registration Instructions	Online and paper registration options are available. Account numbers will be issued in 5 days via online process or 2-3 weeks via mail.	Online and paper registration options are available. Account numbers will be issued during the online process or in 2-3 weeks via mail.
Employer Self-Service Login	myVTax Login Page