USA State Payroll Rates + Resources: State of Vermont: Obtaining a TIN + Unemployment Insurance
The purpose of this documentation is to outline the processes and requirements associated with becoming a new employer in the state of Vermont. Specifically, we will be covering how to obtain a Tax Identification Number and Register for Unemployment Insurance.
Good to Know!
Federal Employer requirements (obtaining a federal identification number, withholding of federal income tax, FICA, and filing of all applicable federal returns (FUTA, 940, 941, and 1099-C) will not be covered below - just the state of Vermont's requirements. Click here for a basic (not all-inclusive) IRS checklist for Starting a New Business.
Registering for Withholding Tax
Good To Know!
If you have already registered on the Vermont Agency of Administration Department of Taxes, skip to the next section.
Wages, pensions, annuities, and other payments are generally subject to Vermont income tax withholding if the payments are subject to federal tax withholding and the payments are made to:
A Vermont resident, or
A nonresident of Vermont for services performed in Vermont.
You can register your business at the Vermont Agency of Administration Department of Taxes. Click on the Need An Account? Sign Up link.
Registering for Unemployment Insurance Account: Small Business Owner
There are a number of ways that an entity is deemed to be an employer for purposes of furnishing unemployment insurance coverage, including an entity which:
Employs one or more persons during some part of a day in each of at least 20 different weeks (not necessarily consecutive) in either the current or the preceding calendar year in general employment;
Pays at least $1,500 in gross wages during any calendar quarter in either the current or the preceding calendar year, regardless of the number of employees;
Succeeds in the business of any employer already covered under the Vermont Unemployment Compensation law.
Is (or becomes) liable under the Federal Unemployment Tax Act and furnishes any employment in this state to individuals hired for a specific job in Vermont regardless of the number hired or the number of weeks employed.
It begins employing again after a period of inactivity of fewer than 3 years.
You can register for UI Quarterly Tax Reporting on the State of Vermont's Department of Labor website or by using Form BR-400, Application for a Business Tax Account.
Registering for Unemployment Insurance Account: Large Business Owner/3rd Party Reporter
Large employers with more than 250 employees and 3rd Party/payroll services must complete and submit the forms listed below.
Please fax completed registration forms to:
Employer Services Unit
ATTN: Employer Services
P.O. Box 488
Montpelier, VT 05601-0488
FAX: (802) 828-4248
Email: [email protected]
Once the registration form has been reviewed and approved, it will be returned to you with a unique User ID number which will allow you to move forward with the reporting process.