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Level 2
July 27, 2022
Question

Work in multiple states

  • July 27, 2022
  • 1 reply
  • 2 views

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 

    1 reply

    Level 5
    July 27, 2022

    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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    Level 2
    July 27, 2022

    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. 

     

     

     

    Level 5
    July 27, 2022

    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-information
    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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