Vermont New Employer Information

• Apply for an Employer Identification Number (EIN, aka, FEIN) with the IRS online .
• To read more about how to apply for an EIN, read our article, “Your Step-by-step Guide on How to Apply for EIN.”
• You will be assigned a unique nine-digit number to identify your business for your federal taxes by the IRS. To learn more, read, “What Is an FEIN?”

• Although it is not required, we suggest you register for the EFTPS (Electronic Federal Tax Payment System).
• EFTPS is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot Software. To find out more about the EFTPS, read our article, “What Is EFTPS?”

• New employers in Vermont need to register their business for a payroll withholding account for state income taxes (SIT).
• You can register online for this account via the Vermont Secretary of State.

• New employers in Vermont will need to register online with the Vermont Department of Labor for a state unemployment insurance (SUI) account.
• All employers are required to file their quarterly UI Wages and Contribution Report electronically. You can register for electronic services by going to Employer Online Services and selecting “Register for UI Quarterly Tax Reporting.”

• Most new employers in Vermont will have a new employer SUTA rate of 1% for 2024.
  • New employers classified with the NAICS code 236 Construction, 237 Heavy/Civil Engineering, 238 Specialty Trades foreign construction will be assigned a different new employer rate. For more information, visit the Vermont Department of Labor.
• You will be assigned a new State Unemployment Tax Assessment rate every year after you have become an established employer.
• To learn more about SUTA, read our article, “What Is SUTA Tax?”

• You must have workers’ comp insurance if you have at least 1 employee in Vermont. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Vermont here.
• Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.

• Beginning in 2025/2026, Vermont will require employers with 5 or more employees to enroll in VTSaves or offer a qualifying plan alternative.
• Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.

• Fill out the required Form I-9 for employee work verification in the USA.
• This is a two-part form. The first section is filled out by the employee and the second part is to be filled out by the employer. To learn more, read, “Form I-9 In a Nutshell.”
• You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”

• Employees need to fill out Form W-4, Employee’s Withholding Certificate for federal income taxes (FIT).
• For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?”

Form W-4VT is the Vermont Employee’s Withholding Allowance Certificate for state income tax (SIT).

• Vermont employers need to report new employees online within 10 days of hire or rehire with the Vermont Department of Labor.
• To learn more, read, “What Is New Hire Reporting?

• Vermont’s minimum wage is $13.67 per hour in 2024.
• By law, you are required to post the Vermont minimum wage poster for your employees.

• Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!