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WendyB1980
Returning Member

Work in multiple states

Hello-

 

We are a company in Nevada and have an employee that works remotely from her home in Vermont.  Are we, the employer, required to withhold Vermont state tax.  

 

Thanks, 

Wendy 

3 Replies
kdevere
Employee Tax Expert

Work in multiple states

Hi Wendy!  great question.  The rules for remote workers can very greatly by state.  In this case, Vermont will consider the income to be taxable in Vermont as income earned while in Vermont is taxable, so it would be best to with hold the taxes for the employee.  If you do not with hold them, the employee will need to pay them when they file their Vermont return.


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WendyB1980
Returning Member

Work in multiple states

Thank you for your response!  If we withhold Vermont state taxes, do we then also have to pay into Vermont's unemployment?  It's my understanding that if the employee would apply for Nevada unemployment not Vermont unemployment, please clarify. 

 

 

 

kdevere
Employee Tax Expert

Work in multiple states

You would pay unemployment taxes to the state as well.  Here is a helpful link to the Vermont Department of Labor:

https://labor.vermont.gov/unemployment-insurance/ui-employers/quarterly-reporting-taxable-wage-infor...
You may also contact them:
Vermont Department of Labor
5 Green Mountain Drive
P.O. Box 488
Montpelier, VT 05601-0488
(802) 828-4000

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