Income/Franchise:
Vermont: Administrative Guidance Addresses Employer Withholding for Remote Employees

Coronavirus (COVID-19) Update: Information for Taxpayers, Vt. Dept. of Taxes (updated 7/7/22). Continuing to respond to the COVID-19 pandemic and the growing trend of companies hiring remote employees [see State Tax Matters, Issue 2021-22, for details on earlier related guidance], the Vermont Department of Taxes (Department) now states that “although all income earned in Vermont is considered Vermont income, employers are not required to begin withholding Vermont Income Tax until an employee has been working from a Vermont location for thirty days.” According to the Department, this treatment applies to employees working from a home, a rental property, a co-work space, or any other location within Vermont. Accordingly, the Department recommends that employers “conduct a review of their employees’ work locations to ensure that income tax is withheld and remitted in the correct state where the tax will be due.” Please contact us with any questions.