The legislation also creates an exclusion of taxable social security benefits from the state taxation for joint filers with federal adjusted gross income of $60,000 or less, and for single filers with federally adjusted gross income of $45,000 or less, with phase-outs above those amounts. In addition, there is an increase in Vermont’s earned income tax credit from 32% of the federal credit to 26% of the federal tax credit.
Vermont Withholding Tables
The agency is not planning to update the 2017 withholding tables for 2018; there will be no update to match changes in the federal tables resulting from the Tax Cuts and Jobs Act. Employers should continue to use the 2017 tables for 2018.
The tables will be updated for 2019 and may look substantially different but the payroll outcomes should be similar to the current tables. The agency is currently working on publishing guidance specific to tax preparers with a detailed summary. Additional details of the budget bill can be found here. The Governor’s letter details elements of the budget bill and his reasons for passing this legislation without his signature.
Thank you for choosing Paylocity as your Payroll Tax partner. Should you have any questions please contact your Paylocity Account Manager.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.