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Depositing and Reporting Withheld Taxes: Vermont

Depositing and Reporting Withheld Taxes requirements for other states

Federal law and guidance on this subject should be reviewed together with this section.

Author: Vicki M. Lambert, The Payroll Advisor

Summary

  • The deposit thresholds and due dates are based on how much an employer can reasonably expect to withhold during a calendar quarter. See Deposit Thresholds and Schedules.
  • Employers that do not deposit electronically must complete the appropriate form. See Forms.
  • Vermont employers deposit either monthly, quarterly or semiweekly. A tax return must be filed even if no tax is due for the reporting period. Certain Vermont employers are required to offer health insurance coverage and pay a portion of the cost on a quarterly basis together with their quarterly withholding return. See Deposit and Filing Due Dates.
  • Penalties are imposed for failure to comply with the income tax depositing and filing requirements. See Penalties.
  • Certain employers are required to make deposits by electronic funds transfer (EFT). See Electronic Deposit Requirements.
  • Vermont employers must file an annual reconciliation return by January 31. See Annual Reconciliation Forms and Filing Deadlines.
  • Certain employers must file Forms W-2 electronically. See Electronic and Magnetic Media Form W-2 Reporting Requirements.