Unemployment Insurance Tax (FUTA/SUTA): Vermont

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

Author: Vicki M. Lambert, The Payroll Advisor

Summary

• Vermont uses the ABC test to determine who is an employee for state unemployment insurance (SUI) tax purposes. See ABC Test.
• The law defines wages for SUI purposes as all compensation for personal services, including salaries, commissions, bonuses and the cash value of all compensation paid in any medium other than cash. See SUI Taxable Wages.
• The annual total SUI tax rate is based on a range of rates. See Contribution Rates.
• An employer that is required to make unemployment insurance contributions must file quarterly reports online. Reports must be filed even if no wages were paid in a calendar quarter. See Quarterly Reporting Requirements.
• Employers that operate more than one establishment in Vermont must submit Multiple Worksite Reports. See Multiple Worksite Reporting.
• Employers must respond promptly to labor department requests for information to avoid being charged with benefit overpayments. See Benefit Overpayments.
• All employers in Vermont must maintain records for each employee for four years and keep them available for inspection by the state Department of Labor. See Recordkeeping Requirements.