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August 6, 2021
2021-1479

Vermont announces an increase in state unemployment insurance tax rates effective July 1, 2021

The Vermont Department of Labor announced that its fiscal year 2022 (July 1, 2021 — June 30, 2022) state unemployment insurance (SUI) tax rates are determined on Rate Schedule III, with rates ranging from 0.8% to 6.5%, up from fiscal year 2021 where Rate Schedule I applied, with rates ranging from 0.4% to 5.4%. The increase is due to the impact of COVID-19 unemployment insurance (UI) benefits on the state's UI trust fund, and despite legislation that required that calendar year 2020 UI benefits not be used in computing employer SUI tax rates.

Newly liable employers continue to pay SUI contributions at the rate of 1%, except for the following foreign construction classifications:

  • Construction of Buildings (NAICS 236) = 3.2%
  • Heavy & Civil Engineering Construction (NAICS 237) = 4.7%
  • Specialty Trade Contractors (NAICS 238) = 3.8%

The Department also announced that the maximum weekly UI benefit amount paid to unemployed Vermonters will increase from $531 to $583, effective beginning the week ending July 10, 2021.

According to a Department tax representative, the 2022 SUI taxable wage base is not yet available.

Mailing of fiscal year 2022 SUI tax rate notices

According to a tax representative of the Department, the fiscal year 2022 SUI rate notices were dated June 24, 2021, but were not mailed until the first weeks of July 2021. As a result, the deadline for appealing a fiscal year 2022 SUI tax rate is extended to August 2, 2021. Click here for more information on appeals.(Telephone conversation, Department tax representative, July 12, 2021.)

For more information on Vermont SUI taxes, contact the Department at +1 802 828 4344 or visit its website.

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Contact Information
For additional information concerning this Alert, please contact:
 
Workforce Tax Services - Employment Tax Advisory Services
   • Kristie Lowery (kristie.lowery@ey.com)
   • Kenneth Hausser (kenneth.hausser@ey.com)
   • Debera Salam (debera.salam@ey.com)

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