The Vermont Department of Taxes has published its 2019 Income Tax Withholding Instructions, Tables, and Charts.
The following revisions have been made from the previous version, published in 2017:
- Tax tables have been adjusted to reflect new computing methods and changes in tax rates.
- Instructions for computing Vermont income tax withholding have been added:
- Withholding is calculated in the same manner as federal withholding by using the Vermont withholding tables or wage bracket charts included in this publication.
- Use the employee’s Form W-4VT to determine filing status, number of allowances, and any extra withholding.
- Employees who have adjusted their federal withholding in anticipation of tax credits or are in civil unions or marriages must complete Form W-4VT to ensure correct withholding amounts.
- Employers are advised to require employees to complete or update their Forms W-4VT due to new tax laws.
- Employers may rely on federal Form W-4 if the Vermont form is not submitted – however, this may result in under-withholding.
- In this circumstance, if the federal Form W-4 indicates an extra amount of federal withholding for each pay period, Vermont withholding should be increased by 30% of the extra federal withholding.
- For non-periodic annuity, supplemental, and deferred compensation payments, Vermont withholding can be estimated at 30% of the federal withholding. This is an increase from 24% previously.
- Vermont will no longer participate in the Combined Federal/State Filing Program.