Vermont Payroll Instructions

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Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

Vermont has state income tax withholding, based on "stepped" tax tables similar to the federal payroll withholding tax tables. The formulas changed in 2021 (and in 29 of the past 31 years). Just the usual indexing for inflation, this year.

Click here for more about Goldenseal payroll software.

HINT-- Turtle Creek Software provides free annual updates for US federal and Vermont state tax withholding rates.

Vermont State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.
  7. Enter the Vermont Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

Vermont State Unemployment Tax Instructions

The Vermont State unemployment insurance rate applies to the first $14,100 in wages for each employee. The cutoff rate increased every year from 2009 until 2018. It decreased in 2019, increased for 2020 then decreased again this year.

The starting SUTA rate for most companies is 1%. It is higher for out-of-state construction companies, but not local ones. After the first year, the SUTA rate depends on the ratio of past payroll size and benefits paid out. Rates depend on industry, and experience.

To enter your Vermont state SUTA tax rate into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate Vermont SUTA tax in the list, and double-click on it. HINT: If you don't see Vermont SUTA in the list, you'll need to import your state's payroll info first.
  3. Click in the percentage field next to Calculation method, and enter the SUTA rate for your business.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Vermont Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used

Vermont Tax Contacts

Payroll withholding taxes website

Payroll Tax Office-- 802 828-2505
SUTA-- 802 828-4253

Vermont Dept of Taxes
109 State St.
Montpelier VT 05609-1401

Official State Lawn Ornament

"Can't get there from here" sign.