Vermont registration and tax info

You can add Business Compliance if all of these are true:

• You run payroll with Gusto. Business Compliance is not sold on its own.

• You're on the Solo, Simple, Plus, or Premium plan. It's included with Premium at no extra cost.

• Your business is a corporation or an LLC. Corporations include S corporations and nonprofit corporations. An LLC qualifies however it's taxed.

New sign-ups are not available for professional entities, including professional corporations and professional limited liability companies (PLLCs). If you already have a Business Compliance subscription as a professional entity, your coverage continues as it is.

Business Compliance is not available yet for sole proprietors, general partnerships, limited partnerships, or limited liability partnerships (LLPs). It's also not available for cannabis-related businesses, on any plan.

Not sure if you qualify? Chat with us before you sign up.

Business Compliance works state by state. Each state you add includes:

• Registered agent — we accept legal and government mail for your business in that state.

• Change of registered agent — we file the change so your mail comes to us.

• Foreign qualification — we register your business with the Secretary of State so you can legally work there.

• State tax registration — we register you with the state's tax agencies when you hire or start working there, including local tax agencies and Paid Family and Medical Leave (PFML) agencies wherever Gusto is able to register with them.

• Annual report filing — we file the yearly report that keeps your business in good standing.

• Government mail monitoring — we scan mail from state agencies into Gusto. Each notice comes with a plain-language summary of what it means and what to do next.

• Proactive alerts — we tell you about deadlines before they're due.

You also get a compliance concierge team, no matter how many states you cover.

Cost: $85 per state, per month, billed monthly. Adding a state commits you to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, vary by state and business type, and show on your invoice.

Local tax and PFML coverage follows what Gusto's state tax registration supports, and not every agency can be registered through Gusto. Delaware and Maine do not allow a third party to register for Paid Family and Medical Leave, so you'll register with those agencies yourself. If we cannot register one of your agencies, we'll show it on your registration page under what you'll complete on your own. See Let Gusto help you with state tax registration.

1. Sign in to Gusto.

2. Go to Taxes & Compliance.

3. Select Business compliance.

4. Answer the questions about your business and the states where you work.

5. Review the price and what's included, then confirm.

After your first state is set up, you'll see its registrations and anything left to do.

Add a state when your business expands

When you add an employee or work location in a new state, that state shows up under Your states as Setup in progress, with your next step. Steps often include telling us more about your business there and moving your registered agent to us.

Select Start on a task to finish it, or View state details to see everything for that state. When every step is done, the state changes to Active.

To be your registered agent in a state, we file a change of registered agent with that state.

When a state needs this, you'll see a task on that state's card under Your states. Select Start to begin.

Keep your current registered agent until we confirm the transfer is done. A gap in coverage can put your business out of good standing in that state.

Once a state is active, we take over the ongoing work. We review your government mail, track your deadlines, and give you a concierge team to ask about any of it.

Your Business compliance page also shows your Compliance documents and Tax account details for each state.

Go to Taxes & Compliance → Business compliance → Manage subscription.

• To stop coverage in one state, select Remove next to that state.

• To cancel Business Compliance, select Leave Business Compliance.

Each state you add runs for a 12-month term, and you're billed monthly over that term. If you want to remove a state or leave Business Compliance before that term is up, email your compliance concierge team at [email protected] first. They'll tell you what happens to the rest of the term.

If Business Compliance is included with your Premium plan, you'll see a note on this page.

• Legal and tax advice. We do not give legal or tax advice. For advice about your business, talk to a lawyer or an accountant.

• Payroll taxes. Gusto payroll already handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business.

• Forming a new business. We register an existing business in a new state. We do not form new businesses.

• Sales tax. We do not register you for sales tax or file sales tax returns.

• Professional and industry licenses. We do not get or renew licenses for your profession or industry, or handle their reporting.

• Reinstatements and reopened accounts. We do not reinstate a business with the Secretary of State or reopen closed payroll tax accounts.

• General mail. We monitor payroll and compliance notices from government agencies, not your other mail.

Q: Why does my business need to register in a state?

A: Once you have an employee, a location, or other business in a state, that state's rules apply to you. This includes registration, filings, taxes, and renewals. It's separate from registering to run payroll there.

Q: How is this different from the payroll taxes Gusto already handles?

A: Gusto payroll handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business, like Secretary of State registration, annual reports, and registered agent service.

Q: I'm already registered in my state. Do I still need this?

A: Registering is just the first step. Staying in good standing is ongoing. We keep you there by acting as your registered agent, watching your mail, filing your annual reports, and alerting you before deadlines.

Q: How much does Business Compliance cost?

A: $85 per state, per month, billed monthly. When you add a state, you are committing to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, and they vary by state and business type. One-time services are charged separately from your subscription. You'll see the price before you confirm.

Q: How do Business Compliance charges show up on my bill?

A: They appear on your regular Gusto invoice, not a separate bill. Your subscription, each one-time service you order, and state filing fees show up as their own charges, with the state named, so you can see what each one is for.

Q: I already paid for a one-time registration. What happens if I add Business Compliance?

A: Email your compliance concierge team at [email protected]. They'll review your account and share your options.

You must register with the Vermont Secretary of State before signing up for any state tax accounts.

Rules may be different based on your business type, so it's always a good idea to talk to a lawyer or business expert to make sure you're meeting all legal requirements.

Who does not need to register?

• Benefit Corporation

• Close Corporations

• Cooperatives

• Sole Proprietors and General Partnerships (unless using a business name that's different from the owner's legal name)

If you're not on this list, you must register.

Register with the Vermont Secretary of State

1. Pick a unique business name.

   • Make sure no one else in Vermont is using it. You can search names online to check.

2. Fill out the online registration form.

   • If you're unsure about your business type, check the state's website for help.

3. Pay the registration fee.

   • The amount depends on your type of business.

4. Get your registration ID.

   • The state will send this after your form is processed. Keep it safe. You'll need it later to register for state taxes.

Most businesses in Vermont need to register with the Vermont Department of Taxes. You'll need a "business tax account" for things like:

• Withholding (Gusto needs this account number)

• Sales and Use

• Meals and Rooms

• And more

Keep the registration timelines below in mind when planning your first payroll in Vermont.

• Online registration: You'll get your account number in 5–7 days.

• By mail or fax: It takes 10 business days to process.

Nonprofit organizations that qualify for exemptions need to register before using an exemption certificate. You can learn more about how to register a nonprofit organization.

Register for withholding (income) tax, Health Care Coverage (HCC), and Child Care Contribution (CCC) taxes

Step one: Register with the Secretary of State

Vermont offers an online service center to help you register your business and apply for any and all licenses or insurance you need. Here's how:

1. Go to the Secretary of State website.

   • It's a good idea to talk to a lawyer or an accountant when choosing 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, sign in.

5. Follow the prompts, create an account, and fill out all required information.

6. You'll also need to register for a "Business Tax" account (learn how below) to get your:

   • Withholding account number

   • Filing frequency

Step two: Register for the Business tax

You should get your account number within 5–7 days.

1. Use myVTax to register for a "Business Tax" account.

2. Under "Need an account?" click Sign Up.

3. Click the link in the "For Businesses and Corporations" section.

4. You'll need info like:

   • Taxpayer ID (for example, FEIN or 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 and Use and Meals and Rooms only)

   • Names, addresses, and identification numbers of your business principals

5. Click Next.

6. Fill out all required information.

If you have questions, contact the agency at (802) 828-6802 or email [email protected].

Business tax account number format: It should start with "WHT" followed by a "10" or "11" (for example, WHT10###### or WHT11######).

Most companies in Vermont must start paying unemployment insurance tax once they have:

• Paid $1,500 in wages during a calendar quarter

• Had at least one Vermont employee working for any part of the week for 20 or more different weeks during a calendar year

Your business type (general, nonprofit, and similar) can affect when the company is responsible for paying this tax. Contact the agency to confirm when the company will be liable.

Run payroll in Gusto before you're liable for SUI

If you need to run payroll but do not yet meet the above requirements, enter the new employer rate for Vermont in Gusto in the meantime. Update the rate once you receive it.

Register for unemployment tax

You'll receive your Employer Number and unemployment tax rate approximately two weeks after registering online.

1. Go to the Vermont Department of Labor to check if you're required to pay this tax and register.

2. Fill out all required information.

Once you complete registration, take these steps:

• Give Gusto third-party access (TPA) by sending a notarized Power of Attorney (POA) to Gusto so we can file and pay your unemployment taxes.

• Enter your tax account information in Gusto once you add a valid Vermont work address for one or more employees.

Next to Withholding Account ID, click Edit to enter your withholding account number. This number starts with "WHT" followed by a "10" or "11" (for example, WHT10###### or WHT11######).

Where to find your Withholding Account ID

• Letters from the Vermont Department of Taxes

If you cannot find your account number, call (802) 828-2551, option 3, or email [email protected].

Next to Employer Number, click Edit to enter your 7-digit unemployment account number.

Where to find your Employer Number

• Letters from the Vermont Department of Labor, such as the Contribution Rate Notice or the Quarterly Wage and Contribution Report (Form C-101)

If you cannot find your account number, contact the agency at (802) 828-4344.

Next to Unemployment Tax Rate, click Edit to enter your unemployment tax rate.

Where to find your Unemployment Tax Rate

• Letters from the Vermont Department of Labor, such as the Contribution Rate Notice or the Quarterly Wage and Contribution Report (Form C-101)

If you cannot find your rate, contact the agency at (802) 828-4344.

If you do not have your assigned rate yet, enter the new employer rate for Vermont in Gusto in the meantime. Update the rate once you receive it.

When setting up Vermont taxes in Gusto:

• You'll be asked if you provide health care for your employees.

• Employees will be asked if they are covered under Vermont law.

Review Vermont Form HC-2 for more info.

If you do not offer health care to all employees, Gusto will estimate your HCC cost with each payroll and make adjustments at the end of the quarter based on the agency's rules.

Employees who do not get health insurance from their job (an employer-sponsored health plan) must fill out Form HC-2 each year to declare their health coverage status.

Keep this form for three years. You do not need to send it to the state. Gusto does not collect or store this form.

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

Health Care Contribution (HCC) Annual Statement

Vermont requires employers to give employees a yearly statement showing:

• The total monthly premium for any employer-sponsored health plan

• The employer's share of the premium

• The employee's share of the premium

• Any money the employer contributes toward the employee's cost-sharing requirement or other out-of-pocket expense

To find this information in Gusto:

1. Go to the Reports section.

2. Find Benefits Reports.

3. Select the Health Insurance option, choose the date range Annual, and select the tax year.

4. Run the report.

Starting July 1, 2024, employers in Vermont must pay a 0.44% payroll tax on Vermont employee wages. Gusto will calculate and pay this tax for you (paid to the Department of Taxes).

Employers can also choose to deduct up to 25% of the tax (0.11%) from employees' wages. To do this:

1. Go to Taxes & compliance, then select Tax setup.

2. Find Vermont Tax Setup and select Manage taxes.

3. Next to Percent of CCC paid by employees, click Edit.

4. Click Add a new setting.

5. Select an effective date.

   • If you've already run payroll in the current quarter, to remain compliant, you can only choose an effective date in a future quarter.

6. Enter a deduction percentage between 0–25%.

   • This percentage applies to all Vermont employees.

7. Click Save.

Once payroll is run for the quarter, the percentage can only be updated for the next quarter.

CCC payroll tax is paid to the state at the same time and in the same way as income tax withholding, with quarterly reporting on the WHT-436.

Vermont has moved to an online system, so you no longer need to submit a notarized power of attorney form. Instead, you authorize Gusto as your third-party administrator (TPA) directly in Vermont's Employer e-Services portal. Once you approve the request, we can file and pay your Vermont unemployment tax on your behalf. Follow the steps below to set up your account and approve the request.

Part 1 — Register for myVermont and set up your Employer e-Services account

To let Gusto request access to your account, follow these steps:

1. Register your company through myVermont. You'll receive your seven-digit employer account number (EAN) 10 – 14 days after registering.

   • If you have not already, create a myVermont account to access e-Services.

   • Employers and TPAs should use their business or work email address for their myVermont account. If you already have a myVermont account under a personal email address, create a new one with your business or work email to access Employer e-Services.

   • Claimants who already have a myVermont account do not need to create a new one. They can use their existing credentials to access e-Services.

2. After you register through myVermont and receive your EAN, sign up for e-services. Signing up lets you manage your account and authorize Gusto to file and pay on your behalf.

   • Visit the Employer e-Services portal and click Sign in with myVermont in the top right corner to sign in to e-Services.

     • Use your myVermont credentials to sign in to your e-Services account.

     • Follow the steps to authorize your e-Services account.

   • Access your e-Services account to review and complete unemployment insurance (UI) actions.

     • You now have access to your e-Services account, where you can review account information and complete UI actions like filing claims, submitting quarterly reports, and approving Gusto's access requests.

Part 2 — Approve Gusto as your third-party administrator

After you register through myVermont and authorize your e-services account, Gusto automatically submits a TPA access request for your account.

Once Gusto submits the request, you get an in-app notification asking you to grant access. To grant Gusto access, follow these steps:

1. Sign in to Vermont's Employer e-Services portal.

2. Click Action Center.

3. Click Respond to Access Request under A third-party administrator requested access.

4. You'll see a message that says “GUSTOS / ZENPAYROLL has requested access to your account. You may accept or reject the request.”

5. Select Yes.

6. Click Submit.

7. Once you approve the request, we can start filing and paying your Vermont unemployment taxes on your behalf.

To let Gusto submit withholding tax amendments for you, you need to give Gusto third-party access (TPA) to your Vermont myVTax account. Follow these steps:

1. Sign in to your myVTax account.

2. On your Home page, under I want to, click Third Party Access.

3. In the Enter Third Party Username field, enter Gusto, Inc or Zenpayroll1.

   • Check that the Name field shows Gusto (or Zenpayroll).

4. Decide if you want Gusto to designate other users to access your account (this is optional).

5. Select Withholding account, then click Next.

6. Choose the range of tax years for Gusto's access.

   • Start with the first day of the first quarter you had a payroll check date in Gusto.

7. Under Access Level, choose View, File and Pay (this is needed for Gusto to file amendments).

8. Check the confirmation box and click Submit.