Vermont Publishes 2019 Income Tax Withholding Instructions, Tables, and Charts

January 10, 2019 Tom Hospod

The Vermont Department of Taxes has published its 2019 Income Tax Withholding Instructions, Tables, and Charts.

The following revisions have been made from the previous version, published in 2017:

  • Tax tables have been adjusted to reflect new computing methods and changes in tax rates.
  • Instructions for computing Vermont income tax withholding have been added:
    • Withholding is calculated in the same manner as federal withholding by using the Vermont withholding tables or wage bracket charts included in this publication.
    • Use the employee’s Form W-4VT to determine filing status, number of allowances, and any extra withholding.
    • Employees who have adjusted their federal withholding in anticipation of tax credits or are in civil unions or marriages must complete Form W-4VT to ensure correct withholding amounts.
  • Employers are advised to require employees to complete or update their Forms W-4VT due to new tax laws.
    • Employers may rely on federal Form W-4 if the Vermont form is not submitted – however, this may result in under-withholding.
    • In this circumstance, if the federal Form W-4 indicates an extra amount of federal withholding for each pay period, Vermont withholding should be increased by 30% of the extra federal withholding.
  • For non-periodic annuity, supplemental, and deferred compensation payments, Vermont withholding can be estimated at 30% of the federal withholding. This is an increase from 24% previously.
  • Vermont will no longer participate in the Combined Federal/State Filing Program.

About the Author

Tom Hospod

Tom Hospod is a member of the Tax Research Team for the Direct Tax division at Sovos Compliance, where his main areas of focus are Tax Withholding and Automatic Exchange of Information (AEOI). Prior to Sovos, Tom worked as a legislative aide in the Massachusetts House of Representatives. He also has experience in securities law—focusing on broker-dealer disputes and representing clients in FINRA arbitration. Tom is a member of the Massachusetts Bar, earned his B.A. from Boston College and his J.D. from the University of Miami.

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