Country Payroll Guide USA – Vermont

We deliver secure, compliant, accurate and touchless global payroll for USA - Vermont.

Get in touch
Vermont image

Key Facts

Capital
Montpelier
Date format
mm/dd/yyyy
Currency
United States Dollar (USD)
VAT
the standard rate is 6% to 7%

Contributions

Employers

Unemployment (State)
Unemployment (State) - 0.4% to 5.4%
Unemployment - New Employer (State)
Unemployment - New Employer (State) - 1%
FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
FUTA Unemployment (Federal)
FUTA Unemployment (Federal) - 6% (Maximum taxable wages is 7,000 USD)
Total Employment Cost
Total Employment Cost - up to 19.05%

Employees

FICA Social Security (Federal)
FICA Social Security (Federal) - 6.2% (Maximum taxable wages is 142,800 USD)
FICA Medicare (Federal)
FICA Medicare (Federal) - 1.45% (Maximum taxable wages is 142,800 USD)
Total Employee Cost
Total Employee Cost - 7.65% to 8.55%

Minimum Wage

Minimum Wage
The minimum wage in Vermont is 11.75 USD per hour.

Payroll

Payroll Cycle
Bi-Monthly
13th Salary

There are no statutory laws on 13th salary.

Income Tax

Employee Income Tax (1) Single Filer (Federal)
$0 - $9,875 = 10%
Employee Income Tax (2) Single Filer (Federal)
$9,876 - $40,125 = 12%
Employee Income Tax (3) Single Filer (Federal)
$40,126 - $85,525 = 22%
Employee Income Tax (4)Single Filer (Federal)
$85,526 - $163,300 = 24%
Employee Income Tax (5) Single Filer (Federal)
$163,301 - $207,350 = 32%
Employee Income Tax (6) Single Filer (Federal)
$207,350 - $518,400 = 35%
Employee Income Tax (7) Single Filer (Federal)
Over $518,400 = 37%

Employee Income Tax (State)

Employee Income Tax (State) (1)
$0 - $40,350 = 3.35%
Employee Income Tax (State) (2)
$40,350 - $97,800 = 6.6%
Employee Income Tax (State) (3)
$97,800 - $204,000 = 7.6%
Employee Income Tax (State) (4)
Over $204,000 = 8.75%

Working Hours

General Working Hours

40 hours per week, eight hours per day.

Overtime

Overtime must be paid at a minimum of 150% of the employee’s regular wage.

Leave

Paid Time Off

There are no statutory laws regarding paid time off.

Public Holidays

11 public holidays.

Sick Days

Vermont Earned Sick Time Law– Allows employees to accrue up to 24 hours of sick leave per year and is accrued at the rate of one hour for every 52 hours worked or can be given to an employee as a lump sum. This sick leave applies to employers who employ more than 5 employees.  Federal Family Medical Leave Act (FMLA)–

An employer may be obligated to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year or certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child). Employers are required to maintain the employees’ health benefits during their leave and keep their job open.

Maternity Leave

Falls under the FMLA and Vermont Family and Parental Leave.

Paternity Leave

Falls under the FMLA and Vermont Family and Parental Leave.

Parental Leave

Parental leave falls under the federal FMLA or Vermont’s Family and Parental Leave law.

Other Leave

Jury Duty Leave: An employer must pay an employee for leave when they have been summoned for jury duty.

Termination

Termination Process

Vermont is an at-will employment state meaning that an employer or employee can terminate an employment agreement at any time except for when terminated for reasons of discrimination.

Notice Period

In general practice, two weeks’ notice is a minimum requirement. In mass dismissal cases, the employer must follow the Worker Adjustment and Retraining Notification Act (WARN Act) and give 60 days notice to impacted employees.

Severance Pay

There is no requirement for severance pay and it is a matter of agreement between an employer and an employee. Employers who choose to offer severance would need to have the provisions within the employee’s contract and agreed by both parties. Some employers choose to offer severance based on their employee’s length of service as an example.

Probation Period

There are no statutory laws regarding a probation period.

Visa

Employment Visa

In general, work visas are based on a specific offer of employment. In most cases, a petition must be filed and approved by the United States Citizenship and Immigration Services (USCIS) before applying for the visa at a U.S. Embassy.