Congratulations on your decision to become a Vermont new employer! You will need a few things in place before you run your first payroll. For Vermont employer registration help, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
Apply for an EIN View Details
Apply for an Employer Identification Number (EIN, aka, FEIN) with the IRS online .
To read more about how to apply for an EIN, read our article, “Your Step-by-step Guide on How to Apply for EIN.”
You will be assigned a unique nine-digit number to identify your business for your federal taxes by the IRS. To learn more, read, “What Is an FEIN?”
Enroll in EFTPS View Details
Although it is not required, we suggest you register for the EFTPS (Electronic Federal Tax Payment System).
EFTPS is an easy way to pay your federal taxes online or view any tax filings made on your behalf by Patriot Software. To find out more about the EFTPS, read our article, “What Is EFTPS?”
State of Vermont Tax Accounts:
Register With the Vermont Department of Taxes View Details
New employers in Vermont need to register their business for a payroll withholding account for state income taxes (SIT).
You can register online for this account via the Vermont Secretary of State.
Register With the Vermont Department of Labor View Details
New employers in Vermont will need to register online with the Vermont Department of Labor for a state unemployment insurance (SUI) account.
All employers are required to file their quarterly UI Wages and Contribution Report electronically. You can register for electronic services by going to Employer Online Services and selecting “Register for UI Quarterly Tax Reporting.”
Get Your SUTA Rate View Details
Most new employers in Vermont will have a new employer SUTA rate of 1% for 2026.
New out-of-state employers classified with the NAICS code 236 Construction, 237 Heavy/Civil Engineering, 238 Specialty Trades foreign construction will be assigned a different new employer rate. For more information, visit the Vermont Department of Labor.
You will be assigned a new State Unemployment Tax Assessment rate every year after you have become an established employer.
To learn more about SUTA, read our article, “What Is SUTA Tax?”
State-mandated Requirements:
Sign up for Workers’ Comp Insurance View Details
You must have workers’ comp insurance if you have at least 1 employee in Vermont. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Vermont here.
Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, ERGO NEXT Insurance. You can get a free quote with ERGO NEXT here.
Offer a Qualifying Retirement Plan View Details
Beginning in 2025/2026, Vermont will require employers with 5 or more employees to enroll in VTSaves or offer a qualifying plan alternative.
Patriot has partnered with Vestwell to offer affordable retirement plans for small businesses that integrate with our payroll software. Learn more here.
Setting Up Your New Employee:
Fill Out Form I-9 View Details
Fill out the required Form I-9 for employee work verification in the USA.
This is a two-part form. The first section is filled out by the employee and the second part is to be filled out by the employer. To learn more, read, “Form I-9 In a Nutshell.”
You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, read “What Should Be in an Employee File?”
Have Employee Fill Out Federal Form W-4 View Details
Employees need to fill out Form W-4, Employee’s Withholding Certificate for federal income taxes (FIT).
For more information, read our help article, “What Is a W-4 Form, and What Is it Used for?”
Have Employees Fill Out State Form W-4VT View Details
Form W-4VT is the Vermont Employee’s Withholding Allowance Certificate for state income tax (SIT).
Report New Hire View Details
Vermont employers need to report new employees online within 10 days of hire or rehire with the Vermont Department of Labor.
To learn more, read, “What Is New Hire Reporting?
Meet Minimum Wage Requirements View Details
Vermont’s minimum wage is $14.42 per hour in 2026.
By law, you are required to post the Vermont minimum wage poster for your employees.
Obtain Labor Law Posters View Details
Get annual posters and all federal, state, county, and city labor law updates with Patriot’s labor law poster store, powered by PosterElite!
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information, read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with government agencies for more requirements.