Vermont employer payroll tax calculator 2026
Hiring in Vermont? New Vermont employers pay 1% state unemployment tax on the first $15,400 of each employee's wages, on top of the federal 6.2% Social Security, 1.45% Medicare and FUTA. For a $60,000 employee that's about $4,984 a year in employer payroll taxes — $352.00 of it to Vermont.
| Wages | $60,000.00 |
| Employer Social Security | $3,720.00 |
| Employer Medicare | $870.00 |
| FUTA (0.6% on $7,000.00) | $42.00 |
| State unemployment insurance (SUI) (1% on $15,400.00) | $154.00 |
| Child Care Contribution (0.33% on $60,000.00) | $198.00 |
| Employer payroll taxes | $4,984.00 |
| Total cost before benefits | $64,984.00 |
Per two-week payroll: $2,499.38. Add health insurance, retirement and workers' compensation in the cost of an employee calculator.
Vermont unemployment tax (SUTA) for new employers
Most new employers pay 1.0%.
After a few years the state assigns your own rate based on your layoff history; enter it in the calculator once you have it. Your rate also earns the usual federal FUTA credit: pay Vermont on time and FUTA is 0.6% on the first $7,000. If Vermont ends up a credit-reduction state for the year (the Department of Labor lists them each November), FUTA is higher.
Other Vermont payroll programs
- Child Care Contribution: 0.44% of all wages; employers may withhold up to a quarter of it (0.11%) from employees, so they pay at least 0.33%.
What an employee costs in Vermont
| Salary | Federal employer taxes | Vermont employer taxes | Total cost | Taxes as % of pay |
|---|---|---|---|---|
| $40,000 | $3,102.00 | $286.00 | $43,388.00 | 8.5% |
| $60,000 | $4,632.00 | $352.00 | $64,984.00 | 8.3% |
| $100,000 | $7,692.00 | $484.00 | $108,176.00 | 8.2% |
A year, before benefits. New-employer rates, 5 employees, full FUTA credit.
How much does a $40,000 employee cost in Vermont?
About $43,388 a year: the $40,000 salary plus $3,102.00 of federal employer taxes and $286.00 of Vermont employer taxes, before benefits. That's $1,668.77 per two-week payroll.
How much does a $60,000 employee cost in Vermont?
About $64,984 a year: the $60,000 salary plus $4,632.00 of federal employer taxes and $352.00 of Vermont employer taxes, before benefits. That's $2,499.38 per two-week payroll.
How much does a $100,000 employee cost in Vermont?
About $108,176 a year: the $100,000 salary plus $7,692.00 of federal employer taxes and $484.00 of Vermont employer taxes, before benefits. That's $4,160.62 per two-week payroll.
Both halves of one paycheck
On a $60,000 salary paid every two weeks, the employee sees $11,374 a year taken out of pay — federal income tax, their own Social Security and Medicare and Vermont taxes — and takes home $48,626 (single filer, standard W-4). That money is withheld from their wages, not an extra cost to you. On top of the salary, you pay $4,984.00 of employer taxes. See the employee's side line by line in the Vermont paycheck calculator.
More employer tools
Cost of an employee (benefits and cost per hour) · Employer payroll tax calculator (all states) · Employer payroll taxes guide
Vermont figures checked 2026-09-28 against the state's own publications. Planning estimate, not a payroll return: your rate notice and the state's rules decide the final amount.
Sources
- Vermont DOL — Unemployment tax rates — new employer rate for most employers 1%; first $15,400 of wages (checked 2026-09-28)
- Vermont Department of Taxes — Child Care Contribution — 0.44% payroll tax on wages; employer may withhold up to 25% (0.11%)
- IRS Publication 15 (2026), Employer's Tax Guide — 2026 employer Social Security and Medicare rates and wage limits; FUTA
- IRS — FUTA credit reduction — 6.0% FUTA on the first $7,000; usual 5.4% credit; credit-reduction states lose part of the credit
- U.S. Department of Labor — FUTA credit reductions — the list of credit-reduction states for each year (checked 2026-09-28)
Questions
What is the Vermont SUTA rate for new employers?
1% in 2026, on the first $15,400 of each employee's wages. Most new employers pay 1.0%.
What is the Vermont unemployment tax wage base for 2026?
$15,400 per employee per year.
How much does it cost to employ someone for $60,000 in Vermont?
About $64,984 a year before benefits: $4,632.00 of federal employer taxes and $352.00 for Vermont, at the new-employer rate with 5 employees.