Vermont registration and tax info

• Vermont Department of Taxes (DOT) - income tax withholding and health care coverage
• Vermont Department of Labor (DOL) - unemployment tax

Most businesses operating in Vermont must first register with the Vermont Department of Taxes. You'll need a separate "business tax account" for:

• Withholding—the only one necessary for Gusto
• Sales and Use
• Meals and Rooms

Eligible exempt organizations must also register prior to using an exemption certificate—learn more about registering a nonprofit organization.

You should keep registration timelines in mind when planning your first Vermont payroll.

• Register online—receive your account number in 5-7 days.
• Register by mail or fax—request is processed in 10 business days.

Register for withholding tax

For new businesses who still need to register with the Secretary of State (SOS)

The Vermont’s Department of Taxes, the Secretary of State’s office, and the Department of Labor have partnered to bring you an online business service center where you can register your business and apply for the licensing and insurance you will need to conduct business in Vermont. 

1. Start registration on the state's Secretary of State website.
   • It is recommended, but not required, that you consult with an attorney and/or an accountant regarding selecting your business type.
2. Click Register Online.
   • Read the "important notice regarding online filing."
3. Click Click to Acknowledge.
4. Click Create a User Account.
   • If you already have an account, you can sign in with your credentials.
5. Complete all of the remaining prompts/fields.
   • During this process, you'll also need to register for a "Business Tax" account to obtain your:
     • Withholding account number and;
     • Filing frequency. 
   • More information about what's needed to register for a "business tax account" can be found in the section below.

For businesses already registered with the Secretary of State

1. Register for a "business tax account" directly with the Department of Taxes using myVTax. Here's what you'll need before you get started:
   • Taxpayer ID (ex. FEIN, SSN)
   • Taxpayer Name
   • Taxpayer Mailing and Location Address
   • Account Name(s)
   • Account Mailing and Location Address(s)
   • Account Start Date and Other Relevant Attributes
   • Location Information (Sales & Use and Meals & Rooms only)
   • Names, addresses, and identification numbers of your business principals.
2. Scroll to the bottom of the page, and click Next.
3. Complete the remaining questions/fields.
   • If you have any questions about the process, call the agency directly at (802) 828-6802 or send an email to [email protected].

You should receive your account number in 5-7 days. Your Vermont withholding account number should start with WHT and either a "10" or a "11".

• Ex: 10###### or 11######

Enter the tax account information in Gusto

Once a valid Vermont work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Vermont Tax Setup" headline and select Manage taxes.
3. Enter your withholding account number and Save.
   • Vermont withholding account number should start with WHT and either a "10" or a "11".
     • Ex: 10###### or 11######
   • If you need to update your account number for any reason: contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
4. Enter your filing frequency and Save.
   • Not sure what your filing frequency is? We recommend selecting the fastest schedule available in Gusto for now, and updating it once you receive your agency-assigned filing frequency. 

Vermont health care coverage (HCC)

While setting up Vermont information in Gusto:

• The company will be asked if you offer health care cover to your employees.
• Your employees will be asked if they're covered or uncovered under Vermont law.

Check out Vermont Form HC-2 for more info. 

If you do not offer health care coverage to all of your employees, Gusto will estimate your HCC cost with each payroll and will make an adjustment at the end of each quarter based on the instructions in this worksheet.

• Note: Your first four full-time equivalent employees are exempt from HCC.

Form HC-2 must be completed every year by your employees that are not covered for health care. Keep this form for your records for three years (you do not need to send the form to the agency). This form is not currently collected or stored in Gusto. 

Keep in mind:

• If an employee's health coverage changes during the year: the employee must complete and submit a new Form HC-2 to you. 
• If an employee is not covered by the your plan and you have no HC-2 on file for them: the law requires the employee be treated as “uncovered." 

For more information, contact the agency at (802) 828-2551 or [email protected].

Health Care Contribution (HCC) Annual Statement 

Vermont requires employers to provide employees with an annual statement of the following: 

• The total monthly premium cost paid for any employer-sponsored plan 
• The employer’s share of the monthly premium 
• The employee’s share of the monthly premium 
• Any amount the employer contributes toward the employee’s cost-sharing requirement or other out-of-pocket expense. 

You can find this information in Gusto by:

1. Heading to the Reports section.
2. Find Benefits Reports.
3. Select Health Insurance option(s), choose a date range of Annual, and the select the tax year in question. 
4. Run the report.

Most companies become liable for state unemployment insurance tax once the company has:

• Paid $1500 in wages during a calendar quarter or;
• Had at least one Vermont-employee working for any part of the week, for 20 or more different weeks during a calendar year.

Running payroll in Gusto before you're liable for SUI

If you need to run payroll and do not yet meet the above requirements, Gusto allows it—we just suggest you add the "New employer SUI tax rate" specific to Vermont in the meantime.

• You can find the new employer rates for each state in the linked article, along with instructions on how to update the rate once you become liable and receive your company-specific agency assigned rate.

Register for unemployment tax

You can find out if you're liable and register with the Vermont Department of Labor online to obtain an Employer Account number—you should receive your account number and unemployment tax rate within 2 weeks of registering online.

Unemployment tax rate info

• Vermont typically assigns new rates each year effective July 1.
• When you're notified that your rate is changing, you'll need to update the rate in Gusto with the correct effective date.
• If you don't know your rate, call the agency at (802) 828-4344.

Enter the tax account information in Gusto

Once a valid Vermont work address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Vermont Tax Setup” headline and select Manage taxes.
3. Enter your unemployment account number and agency-assigned unemployment rate—if you need to update a rate already entered, follow the steps in this article. 
   • If you need to update your account number: contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
   • Don't have your rate yet? Check out this article and enter the new employer rate specific to the state in the meantime. Update the rate as soon as you've received your agency-assigned rate.

Power of attorney is required for the below agencies:

• Vermont Department of Labor (DOL) POA is needed for:
  • Payments and filings—unemployment tax.
• Vermont Department of Taxes (DOT) TPA is needed for:
  • Amended returns (as needed)—withholding tax.

VT DOL POA—payments and filings

In order for Gusto to correctly file and pay your VT unemployment tax, the Vermont Department of Labor (DOL) requires that you submit a notarized Power of Attorney (POA) form. To complete this:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Vermont Tax Setup" and click Manage taxes.
3. Click on Edit next to 'Submit DOL POA Form.'
4. Click on pre-filled Power of Attorney (POA) form in our tooltip.
   • Note: Gusto will fill out the second page of the form.
5. Print the form and have it notarized.
6. After notarizing the POA, please mail it to Gusto at the following address:
   • ATTN: Tax Ops - Audit Team
     Gusto
     1201 16th Street, Suite 350
     Denver, CO 80202

VT DOT TPA—amended returns

In order for Gusto to submit withholding tax amendments on your behalf, the state requires that we have third party access (TPA) to your online Vermont myVTax account.

To grant Gusto the access we need to file amendments:

1. Log into your myVTax account.
2. Under the "I want to" heading on your Home page, click Third Party Access.
3. In the "Enter Third Party Username" field, enter Gusto, Inc or Zenpayroll1. 
   
   • Verify the "Name" field is updated with the Gusto (or Zenpayroll) name.
4. Indicate whether or not you want Gusto to be able to designate other users to access your account—this is not required for us to file this amendment.
5. Select Withholding account, then click Next.
6. Identify the range of tax years you want Gusto to have access to.
   • Start with the first day, of the first quarter you had a check date processed in Gusto.
7. In the "Access Level field", select View, File & Pay—this is required to file an amendment on your behalf.
8. Select the confirmation checkbox.
9. Click Submit.

Withholding account number

If you've run payroll in Vermont previously, you can find your Withholding Account Number on notices received from the Vermont Department of Taxes.

Your Vermont withholding account number will start with a WHT and either a "10" or "11"

• Ex. 10###### or 11######.

If you're unable to locate your account number contact the agency at (802) 828-2551, option 3, or email the agency at [email protected].

Vermont health care coverage (HCC)

While setting up Vermont information in Gusto:

• The company will be asked if you offer health care cover to your employees.
• Your employees will be asked if they're covered or uncovered under Vermont law.

Check out Vermont Form HC-2 for more info. 

If you do not offer health care coverage to all of your employees, Gusto will estimate your HCC cost with each payroll and will make an adjustment at the end of each quarter based on the instructions in this worksheet.

• Note: Your first four full-time equivalent employees are exempt from HCC.

Form HC-2 must be completed every year by your employees that are not covered for health care. Keep this form for your records for three years (you do not need to send the form to the agency). This form is not currently collected or stored in Gusto. 

Keep in mind:

• If an employee's health coverage changes during the year: the employee must complete and submit a new Form HC-2 to you. 
• If an employee is not covered by the your plan and you have no HC-2 on file for them: the law requires the employee be treated as “uncovered." 

For more information, contact the agency at (802) 828-2551 or [email protected].

Health Care Contribution (HCC) Annual Statement 

Vermont requires employers to provide employees with an annual statement of the following: 

• The total monthly premium cost paid for any employer-sponsored plan 
• The employer’s share of the monthly premium 
• The employee’s share of the monthly premium 
• Any amount the employer contributes toward the employee’s cost-sharing requirement or other out-of-pocket expense. 

You can find this information in Gusto by:

1. Heading to the Reports section.
2. Find Benefits Reports.
3. Select Health Insurance option(s), choose a date range of Annual, and the select the tax year in question. 
4. Run the report.

Unemployment Account Number and tax rate

You can find your unemployment account number and rate on notices received from the Vermont Department of Labor such as:

• The Contribution Rate Notice or;
• Quarterly Wage & Contribution Report (Form C-101). 

If you can't locate your account number, call the agency at (802) 828-4344 to obtain it. 

Your unemployment tax rate generally changes each year, effective July 1. When you receive a new rate from Vermont, please be sure to update your rate in Gusto with the correct effective date.

Don't have an agency-assigned UI rate yet?

You can add the "New employer SUI tax rate" specific to Vermont in Gusto for the meantime—find the new employer rates for each state in the linked article, along with instructions on how to update the rate once you've received your company-specific rate.

Power of attorney is required for the below agencies:

• Vermont Department of Labor (DOL) POA is needed for:
  • Payments and filings—unemployment tax.
• Vermont Department of Taxes (DOT) TPA is needed for:
  • Amended returns (as needed)—withholding tax.

VT DOL POA—payments and filings

In order for Gusto to correctly file and pay your VT unemployment tax, the Vermont Department of Labor (DOL) requires that you submit a notarized Power of Attorney (POA) form. To complete this:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Vermont Tax Setup" and click Manage taxes.
3. Click on Edit next to 'Submit DOL POA Form.'
4. Click on pre-filled Power of Attorney (POA) form in our tooltip.
   • Note: Gusto will fill out the second page of the form.
5. Print the form and have it notarized.
6. After notarizing the POA, please mail it to Gusto at the following address:
   • ATTN: Tax Ops - Audit Team
     Gusto
     1201 16th Street, Suite 350
     Denver, CO 80202

VT DOT TPA—amended returns

In order for Gusto to submit withholding tax amendments on your behalf, the state requires that we have third party access (TPA) to your online Vermont myVTax account.

To grant Gusto the access we need to file amendments:

1. Log into your myVTax account.
2. Under the "I want to" heading on your Home page, click Third Party Access.
3. In the "Enter Third Party Username" field, enter Gusto, Inc or Zenpayroll1. 
   
   • Verify the "Name" field is updated with the Gusto (or Zenpayroll) name.
4. Indicate whether or not you want Gusto to be able to designate other users to access your account—this is not required for us to file this amendment.
5. Select Withholding account, then click Next.
6. Identify the range of tax years you want Gusto to have access to.
   • Start with the first day, of the first quarter you had a check date processed in Gusto.
7. In the "Access Level field", select View, File & Pay—this is required to file an amendment on your behalf.
8. Select the confirmation checkbox.
9. Click Submit.

Once a valid Vermont address has been added in Gusto for one or more employee(s), you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the "Vermont Tax Setup" headline and select Manage taxes.
3. Enter the applicable account number(s) and rate(s).