USA State Payroll Rates + Resources: State of Vermont: Filing State Income Taxes, W2s, and 1099s

Purpose

The purpose of this documentation is to outline the processes and requirements associated with filing state income taxes as well as how to file W-2s and 1099s, if needed, in the state of Vermont.

State Income Tax Withholding 

        Form W-4VT, Employee's Withholding Allowance Certificate, is the Vermont equivalent of federal Form W-4. 

        Completing the updated Vermont version of the Employee’s Withholding Allowance Certificate, the W-4VT, is now more important than ever due to the new federal and Vermont income tax laws. The Vermont Department of Taxes is asking taxpayers to file a new W-4VT to ensure the correct amount of income tax is withheld.

        The Forms W-4 and W-4VT generally are valid until the employee provides new ones. However, employees who claim exemption from withholding must renew the exemption annually by filing new Forms W-4 or W-4VT by February 15th each year. 

        State Income Tax Withholding Reporting and Deposits

        The Department will determine your filing frequency based on your annual withholding totals. Generally, your payment frequency will mirror your Federal payment frequency: 

        Payment Due Dates:

        Payment FrequencyPayment Due Date
        MonthlyBy the 25th day of the following month (Submit your final payment of the quarter with Form WHT-436)
        Semi-weekly
        1. If you paid your employees on a Wednesday, Thursday, or Friday: Then payment is due the following Wednesday.
        2. If you paid your employees on any other pay dates: Then payment due the following Friday.

        All taxpayers (Quarterly, Monthly, and Semi-Weekly) are required to file Form WHT-436, Quarterly Withholding Reconciliation, at the close of each quarter. Returns must be filed every quarter even if no tax is due. Visit the Department's secure online filing site at myVTax to file this form electronically. 

        Quarterly Reporting Due Dates:

        QuarterMonths In QuarterDue Date
        1st QuarterJanuary - MarchApril 30th 
        2nd QuarterApril - JuneJuly 31st
        3rd QuarterJuly - SeptemberOctober 31st
        4th QuarterOctober - DecemberJanuary 31st 

        Good to Know!

        On the WHT-436, you will notice the Form HC-1 on page 1. Fill-out both forms even if you had no Health Care Contributions.   

        Forms W-2 & 1099s 

        All employers are required to file Form WHT-434, Annual Withholding Reconciliation.

        This form serves as the transmittal for Forms W-2 and/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.

        Form WHT-434 and Forms W-2 and 1099 must be filed online at myVTax unless you qualify for an exception due to the below reasons: 

        • 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.

        For further details, see the State of Vermont Department of Taxes 2022 Income Tax Withholding Instructions, Tables, and Charts.

        Good to Know!

         You are required to submit 1099 forms if:

        • The payment was subject to Vermont withholding or

        • The payment was made to a nonresident of Vermont for services performed in Vermont

        Good to Know!

        The Vermont Department of Taxes is no longer participating in the Combined Fed/State program for submitting W-2 and 1099 forms with the IRS. You must file these forms directly with the Department of Taxes.