29 December 2016 Vermont 2017 income tax withholding tables available — Form W-2 filing reminders The Vermont Department of Taxes released its state income tax withholding tables for tax year 2017. See the Attachment for a reproduction of the 2017 annual percentage method withholding tables. (Vermont 2017 income tax withholding instructions, tables, and charts.) The 2017 supplemental rate of income tax withholding remains at 24% of federal income tax withholding. You must withhold Vermont income tax on payments to Vermont residents when federal withholding is required. Vermont withholding is also required where the recipient elects optional federal withholding and does not specifically state that the payment is exempt from Vermont withholding. For periodic payments, the tax is computed using the Vermont wage charts or tables. For non-periodic payments the Vermont withholding can be estimated at 24% of the federal withholding. In all cases, the taxpayer is responsible for ensuring that the correct amount is withheld to avoid underpayment of the Vermont tax liability. Note that except for non-periodic payments, employers may no longer compute Vermont withholding as a percentage of the federal income tax withholding. All employers must use the Vermont percentage method tables or wage bracket charts. Note also that the "Married Table" is used for civil unions or civil marriages. Electronic filing of Form WH-434, Annual Withholding Reconciliation, and the accompanying Forms W-2/1099 is mandatory for all employers submitting 25 or more Forms W-2 and 1099. Payroll filing services are required to submit all filings electronically. The Department's online filing service, myVTax, can be found here. The 2016 Form W-2 electronic filing specifications can be found here and the Form 1099 specifications can be found here. Note: The 1099 forms are required (1) when the payment was subject to Vermont withholding, or (2) when the payment was made to a nonresident of Vermont for services performed in Vermont. As we previously reported, Form WH-434 and Forms W-2/1099 for calendar year 2016 are due to the Department by January 31, 2017.
Document ID: 2016-2240 | ||||||||||||||||||||
