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New company registration in Vermont

Income tax withholding

Register with the Secretary of State online. During this process, you will also need to register for a Business Tax account to obtain your Withholding Account Number and filing frequency. Here are some helpful instructions and a link to the website: Vermont Department of Taxes. If you have any questions about the process give them a call at (802) 828-6802.

You should receive your account number in 5-7 days after registering online. Alternatively, your request will be processed in 10 business days if registering by mail or fax. Please keep this time frame in mind when planning your first Vermont payroll.

Vermont health care coverage (HCC)

Please note, during setup you will be asked if your company offers health care coverage to your employees. Your employees will be asked if they are covered or uncovered under Vermont law. Refer to 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.

Unemployment tax

Most companies are liable for state unemployment if they have one or more employees in each of at least 20 different weeks in a calendar year or pay $1500 payroll in any calendar quarter. You can find out if you are liable and register with the Vermont Department of Labor online to obtain an Employer Account number. You should receive your number and tax rate in 2 weeks after registering online.

Unemployment tax rate

The tax rate for new employers is typically 1% except for specific industries such as construction. To confirm your rate, you should call the agency at (802) 828-4344.

Power of Attorney (POA) Form

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. Follow these steps: 

  1. Go to the Vermont Tax Setup page in your Gusto account.
  2. Click on Edit next to 'Submit DOL POA Form.'
  3. Click on pre-filled Power of Attorney (POA) form in our tooltip.
    • Note: Gusto will fill out the second page of the form.
  4. Print the form and have it notarized.
  5. After notarizing the POA, please mail it to Gusto at the following address:
    • ATTN: Gusto Compliance Team
    • 1201 16th St, #350
    • Denver, CO 80202