For Employees
Each employee will need to complete a W-4VT, Employee’s Withholding Allowance Certificate in order to calculate their Vermont Income Tax Withholding. The form will help them determine the number of allowances to take. Form W-4VT was updated in January of 2019 and even employees who have recently updated their W-4s should make sure that they have completed the most recent version of the W-4VT. Here are some frequently asked questions about Vermont employee's withholding allowance certificates.
For Employers
Payments for Tax Withheld
Generally, your payment frequency will mirror your Federal payment frequency; for example, if you are required to pay your Federal Withholding Tax semiweekly, you are required to pay the Vermont Withholding Tax semiweekly.
Quarterly Payment frequency
You should pay the tax when you file Form WHT-436, Quarterly Withholding Reconciliation (see below):
Monthly Payment Frequency
You must pay withholding tax for the month by the 25th day of the following month. (Exception: January’s payment is due the 23rd day of February, but extended to the following Monday if the 23rd occurs on a weekend). For example, withholding tax for the month of June must be paid by July 25. You should pay the first and second months by their due dates as stated above. The third payments should be made when you file Form WHT-436, Quarterly Withholding Reconciliation.
Semiweekly Payment Frequency
Tax withheld for pay dates on Wednesday, Thursday, or Friday is due the following Wednesday. Tax withheld for all other pay dates is due the following Friday. The due date for payments will not usually coincide with the due date for Form WHT-436, Quarterly Withholding Reconciliation.
Reconciliations
Quarterly Reconciliations
All taxpayers (Semiweekly, Monthly, and Quarterly) are now required to file Form WHT-436, Quarterly Withholding Reconciliation, at the close of each quarter.
Annual Reconciliation
All taxpayers (Semiweekly, Monthly, and Quarterly) are now required to file Form WHT-434, Annual Withholding Reconciliation, due the last day of January. This form serves as the transmittal for forms W-2 or 1099 and reconciles the amount of Vermont income tax withholding reported during the year to the amount of withholding tax shown on the W-2 and/or 1099 forms.
Due Dates
The Vermont Department of Taxes determines the filing frequency for each taxpayer. If the listed due date falls on a weekend or holiday, the due date is the following business day.
Filing Methods
Filing Online
All taxpayers may file returns and pay tax due for Withholding Tax using myVTax, our free, secure, online filing site. Filing online through the Vermont Department of Taxes new online system, myVTax, has been mandated by the Commissioner of Taxes beginning with the tax year ending Dec. 31, 2015 . The Commissioner has mandated you pay tax if:
- you submit 25 or more W-2 and/or 1099 forms with Form WHT-434, Annual Withholding Reconciliation, or
- you pay withholding tax on the semiweekly schedule, or
- a payroll filing service is used
Filing Paper Returns
You may file using paper forms if:
- you submit fewer than 25 W-2 and/or 1099 forms and
- you pay withholding tax on the quarterly or monthly schedule and
- you do not use a payroll filing service and
- you cannot file and pay through myVTax
Form WHT-430, Withholding Tax Payment
Use this voucher for the first and second payments of each quarter if you are a monthly filer, are not mandated to use myVTax, and cannot file and pay through myVTax
Form WHT-436, Quarterly Withholding Reconciliation and instructions
All taxpayers must file this reconciliation every quarter. If you are a monthly payer, you should pay the first and second months by their due dates. The third month’s payment should be made when you file Form WHT-436, Quarterly Withholding Reconciliation. If you are a quarterly payer, you should pay when you file Form WHT-436, Quarterly Withholding Reconciliation.
Form WHT-434, Annual Withholding Reconciliation, instructions or online filing instructions
All taxpayers must file this reconciliation, every year.
Want to learn more about withholding tax?
LAWS, REGULATIONS AND GUIDANCE
32 V.S.A. § 5841-5844
32 V.S.A. § 5862d Filing of federal form 1099
Technical Bulletin 23 Income Tax Withholding
2019 Income Tax Withholding Instructions, Tables, and Charts