Vermont Payroll Instructions

Vermont has state income tax withholding, based on "stepped" tax tables similar to the federal payroll withholding tax tables. The formulas changed in 2023 (and in 31 of the past 33 years). Just the usual indexing for inflation, this year.

Click here for more about Goldenseal payroll software.

HINT: TurtleSoft 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. Open the Payroll tab on the left, and choose Employees.
  2. Locate the employee's 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 a Vermont Tax Package into the Tax Package field, based on the employee’s W4 form. Choose Old W4 for pre-2020 forms. Choose New W4 Step2- if they did not check the box in step 2 of the new form. Choose Step2+ if they did check it. 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 $13,500 in wages for each employee (2023 base, a $2000 decrease). The cutoff rate increased every year from 2009 until 2018. It has jumped up and down since then.

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 Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open Vermont SUTA. 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:

State Tax Contacts

Website

Official State Lawn Ornament

"Can't get there from here" sign.