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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.

Relocated and Remote Workers

If you live and work remotely in Vermont, then income earned during the entire period of time that you live in Vermont is subject to Vermont income tax. This is true even if you claim another state as your domicile, or even if you perform the remote work for a company that is not located in Vermont. We recommend that you speak with your employer(s) so that the correct amount of Vermont income tax can be withheld.


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

  • 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.

Hiring Remote Employees

Although all income earned in Vermont is considered Vermont income, employers are not required to begin withholding Vermont Income Tax until an employee has been working from a Vermont location for thirty days. This applies to your employees working from a home, a rental property, a co-work space, or any other location within Vermont. The Department recommends that employers conduct a review of their employees’ work locations to ensure that income tax is withheld and remitted in the correct state where the tax will be due.

  • What if my business is located outside of Vermont but my employee lives in Vermont?

    • If the work is performed in Vermont, Vermont Income Tax must be withheld regardless of whether the employer is located inside or outside of Vermont.
  • Do I need to register my business in Vermont to withhold taxes for my employee?

    • You must register for an employer withholding account. When you register for a Vermont business tax account, be sure to answer the question about hiring employees. If you answer "Yes," then that will prompt the Department to open an employer withholding account for your business.

Quarterly Reconciliation

All taxpayers (Semiweekly, Monthly, and Quarterly) are 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.

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 .

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

Guide to Submitting W-2s, 1099s, and 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

How to Amend a Return

Online

Log into myVTax, and select Amending Returns.

Paper Returns

Submit the amended return with the word AMENDED marked at the top of the form.

Forms and Instructions

Number Instructions Title
8821-VT   Authorization To Release Tax Information
B-2   Notice of Change
BR-400   Application for Business Tax Account
BR-401   Change In Business Principals With Fiscal Responsibility
PA-1   Special Power of Attorney for use by Individuals, Businesses, Estates and Trusts
HC-1, WHT-436 Instructions 

Quarterly Withholding Reconciliation and Health Care Contribution

HC-2   Declaration of Health Care Coverage
W-4VT   Employee’s Withholding Allowance Certificate
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

WHT-434

Instructions

Annual Withholding Reconciliation

All taxpayers must file this reconciliation, every year.

WHT-436, HC-1 Instructions

Quarterly Withholding Reconciliation and Health Care Contribution

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.

Laws, Regulations, and Guidance

Number Title
TB-23 Under Review Determining the Correct Vermont Withholding by Employees
32 V.S.A. § 5841-5844 Income Taxes
32 V.S.A. § 5862d Filing of federal form 1099
NTC-1257 Record of Payment
GB-1210 (2022) 2022 Income Tax Withholding Instructions, Tables, and Charts
GB-1117 2021 Vermont Specifications for E-filing of 1099 Information Returns
GB-1118 2021 Vermont Specifications for Electronic W-2 (EFW-2) Filing
GB-1119 2021 Vermont WHT-434 Specifications for Electronic Filing
GB-1120 2021 Vermont WHT-436 Specifications for Electronic Filing
GB-1098 myVTax Guide to Submitting W-2s, 1099s, and WHT-434
Prior Year Income Tax Withholding Instructions, Tables, and Charts
GB-1210 (2021) 2021 Income Tax Withholding Instructions, Tables, and Charts
GB-1210 (2020) 2020 Income Tax Withholding Instructions, Tables, and Charts
GB-1210 (2019) 2019 Income Tax Withholding Instructions, Tables, and Charts
GB-1210 (2018) 2018 Income Tax Withholding Instructions, Tables, and Charts
GB-1210 (2017) 2017 Income Tax Withholding Instructions, Tables, and Charts
GB-1210 (2016) 2016 Income Tax Withholding Instructions, Tables, and Charts
GB-1210 (2015) 2015 Income Tax Withholding Instructions, Tables, and Charts
GB-1210 (2014) 2014 Income Tax Withholding Instructions, Tables, and Charts

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

2022 Record of Payment

For the Tax Period Ending File by Submit
12/31/2021 1/25/2022 Form WHT-436
12/31/2021 1/31/2022 Form WHT-434 Annual Reconciliation
3/31/2022 4/25/2022 Form WHT-436
6/30/202 7/25/2022 Form WHT-436
9/30/2022 10/25/2022 Form WHT-436
12/31/2022 1/25/2023 Form WHT-436
12/31/2022 1/31/2023 Form WHT-434 Annual Reconciliation

Monthly Filers

For the Tax Period Ending File by Submit
12/31/2021 1/25/2022 Payment and Form WHT-436
12/31/2021 1/31/2022 Form WHT-434 Annual Reconciliation
1/31/2022 2/23/2022 Payment Only
2/28/2022 3/25/2022 Payment Only
3/31/2022 4/25/2022 Payment and Form WHT-436
4/30/2022 5/25/2022 Payment Only
5/31/2022 6/27/2022 Payment Only
6/30/2022 7/25/2022 Payment and Form WHT-436
7/31/2022 8/25/2022 Payment Only
8/31/2022 9/26/2022 Payment Only
9/30/2022 10/25/2022 Payment and Form WHT-436
10/31/2022 11/25/2022 Payment Only
11/30/2022 12/26/2022 Payment Only
12/31/2022 1/25/2023 Payment and Form WHT-436
12/31/2022 1/31/2023 Form WHT-434 Annual Reconciliation

Quarterly Filers

For the Tax Period Ending File by Submit
12/31/2021 1/25/2022 Form WHT-436
12/31/2021 1/21/2022 Form WHT-434 Annual Reconciliation
3/31/2022 4/25/2022 Form WHT-436
6/30/2022 7/25/2022 Form WHT-436
9/30/2022 10/25/2022 Form WHT-436
12/31/2022 1/25/2023 Form WHT-436
12/31/2022 1/25/2023 Form WHT-434 Annual Reconciliation