Struggling to keep up with payroll and HR in Vermont? From local ordinances to statewide labor laws, we’ll help you save time and focus on growing your business.
Payroll services in Vermont
How Paylocity helps Vermont employers
Payroll that gets it done
- Seamless automation: Eliminate repetitive tasks with automated workflows that boost accuracy and save time.
- Smart safeguards: Built-in audits and integrations flag issues before they become errors.
- Transparent calculations: Easily manage overtime, bonuses, and local tax changes, even across overlapping jurisdictions.
Your extra HR team member
- Automated workflows: Use ready-made templates for common tasks or build custom processes that fit your business.
- One employee record: A single source of truth for employee data keeps everything organized and compliant.
- Effortless Time & Labor: Schedule quickly, track clock-ins and meal breaks, and standardize time-off requests.
Compliance made simple
- Compliance dashboard: Get a clear view of requirements with updated forms and expert HR support.
- Built-in data access: Quickly find work authorizations, EEO/FLSA data, pay records, certifications, and industry updates.
- Always up-to-date forms: Access the latest state and federal forms right from the platform.
Challenges facing employers in Vermont
Vermont maintains a complex compliance landscape that requires a careful balance between federal standards and state mandates.
As an employer, you must grapple with:
- Stricter employment regulations ranging from pay transparency to paid sick leave.
- Higher state minimum wage rates.
- Unique Child Care Financial Assistance and Health Care Fund taxes.
Vermont payroll fast facts
Minimum wage
$14.42
State income tax rate
0.00% - 8.75%
Right to work laws
None
State unemployment tax rate
- 1.00% (new employers)
- 0.40% - 5.40% (experienced employers)
Last updated: February 23, 2026
Vermont tax and compliance resources
FAQs about paying employees in Vermont
Does Vermont have a state income tax?
Yes, Vermont’s income tax is progressive, ranging from 0.00% - 8.75% based on the taxpayer's level of income.
Is Vermont a right to work state?
No, Vermont is not a right to work state, but it can pass right to work laws in the future if it wishes to do so.
What are the Vermont final pay laws?
In Vermont, employees who voluntarily resign from a job must receive their final paycheck by the next regular payday. Involuntarily terminated employees must receive their final paycheck within 72 hours.
Are there Vermont work break laws?
No, Vermont currently has no work break laws or regulations, but it does require employers to provide employees with reasonable opportunities during work to eat and use toilet facilities.
