Withholding

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.

How to File

Online Filing
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 .

You must file and pay electronically 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

File W-2/1099/WHT-434

Commissioner's Mandate for Tax Exceeding $100,000
If your total Withholding remitted for the prior calendar year exceeded $100,000, the Commissioner of Taxes has mandated that you must file and pay electronically. The director of the Division of Taxpayer Services will consider a written request for an exemption based on extraordinary circumstances.

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
   

Here is a list of what you’ll need, whether you file your own returns or see a tax professional.

1. Business Name
2. Federal ID Number
3. Mailing Address
4. Reporting Period
5. Business Tax Account Number
6. Total Vermont income tax withheld from your employees for the reporting period
7. Employers should have all employees complete Form W-4VT, Employee’s Withholding Allowance Certificate 
8. All employers are required to file Form WH-434, Reconciliation of Withholding Tax Account annually

Amend a Return

Online
Log into myVTax, and click the button for Amending Returns

Paper Returns
Submit the amended return with the word Amended marked at the top of the form.

Forms and Publications

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.

Filing Deadlines

File Form WHT-436 or Form WHT-434, together with payment on the dates indicated. 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.

Semi-Weekly Filers

Monthly Filers

Quarterly Filers

LAWS, REGULATIONS AND GUIDANCE
Withholding Tax Law and Guidance
32 V.S.A. § 5841-5844
32 V.S.A. § 5862d Filing of federal form 1099

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