Wage statement
With each payment of wages, show total hours worked, hourly rate, gross pay, and each deduction fully itemized.
See details →VERMONT PAYROLL RESOURCES · VT · REVIEWED 2026-10-03
Vermont Payroll &
Pay Statement Guide
Review Vermont’s wage-statement requirement, payroll records, 2026 withholding, the Child Care Contribution, the 2026 minimum wage and unemployment wage base, and official employer resources. Run payroll for a small team and get employee statements from every calculated run.
Statement with each wage paymentVermont requires total hours worked, hourly rate, gross pay, and fully itemized deductions.
Child Care ContributionEmployers pay 0.44% of Vermont wages and may deduct up to 0.11% from employees.
Reviewed 2026-10-03Checked against current Vermont government sources.
AT A GLANCE
What distinguishes Vermont pay-period records
The Vermont Department of Labor’s summary of the state’s Minimum Wage Rules explains that employers must provide a wage statement to employees with each payment of wages, setting out at a minimum the total hours worked, the hourly rate, gross pay, and each deduction fully itemized. Vermont’s minimum-wage subchapter generally applies to employers of two or more employees and excludes listed categories of workers. Under 21 V.S.A. § 393, employers must keep true and accurate records of hours worked and wages paid, open to inspection by the Commissioner.
State income tax withholding
Use the Vermont Department of Taxes’ 2026 Income Tax Withholding Instructions, Tables, and Charts (GB-1210) and the employee’s Form W-4VT.
View 2026 withholding instructions →Child Care Contribution
Employers owe a Child Care Contribution of 0.44% of wages earned in Vermont and may withhold up to one quarter of it—no more than 0.11% of wages—from employees.
View Child Care Contribution →Unemployment insurance
For 2026, Vermont’s unemployment taxable wage base is $15,400, up from $14,800. Employer contribution rates are assigned by the Department of Labor.
View the 2026 wage base announcement →STATE PAYROLL OVERVIEW
What makes Vermont different from other pay-statement jurisdictions
Vermont’s wage-statement requirement comes from the state’s Minimum Wage Rules rather than from a stand-alone wage-payment statute. The Department of Labor’s summary describes a minimum list—total hours worked, hourly rate, gross pay, and fully itemized deductions—provided with each wage payment. The summary does not address electronic delivery or consent, so employers using electronic statements should make sure employees can access and keep them.
Vermont adds a payroll contribution that many employers overlook. The Child Care Contribution, administered by the Department of Taxes, is 0.44% of wages earned in Vermont. The employer owes the full amount but may recover up to one quarter—no more than 0.11% of an employee’s wages—through payroll deduction. If deducted, it should appear as an itemized deduction on the wage statement. Vermont also imposes a Health Care Fund Contribution Assessment on certain employers based on uncovered employees; review it separately.
Vermont’s minimum wage is $14.42 per hour effective January 1, 2026, and the tipped “basic wage rate” for service employees is $7.21. The Department of Labor’s summary describes a two-year retention period for minimum-wage hours and wage records and notes that unemployment law extends retention to three years.
PAYROLL REQUIREMENTS CHECKLIST
The Vermont requirements checklist
Confirm coverage
Vermont’s minimum-wage subchapter generally applies to employers of two or more employees and excludes listed categories, such as certain agricultural and private-home domestic workers. Confirm coverage for unusual worker categories.
Information to include
With each wage payment, show at a minimum total hours worked, hourly rate, gross pay, and each deduction fully itemized—including any employee share of the Child Care Contribution.
Child Care Contribution
Remit 0.44% of Vermont wages. If the employer elects to recover part of it, deduct no more than 0.11% of the employee’s wages.
Other employer obligations
Apply Vermont withholding, unemployment contributions, workers’ compensation, the Health Care Fund Contribution Assessment where applicable, and the 2026 minimum wage separately from the statement rule.
PAYROLL RECORDS IN PRACTICE
How Vermont treats the statement after payday
Delivery method
The Department’s summary does not specify electronic delivery or consent conditions. Use a method the employee can readily access and keep.
Record retention
Keep true and accurate records of hours worked and wages paid under 21 V.S.A. § 393. The Department’s summary describes two-year retention under the minimum-wage law and three years under unemployment law; keep records for at least the longer applicable period.
USE THE 2026 VERMONT TABLES — AND SEPARATE THE CHILD CARE CONTRIBUTION
Use Vermont’s 2026 withholding instructions and tables
Vermont withholding depends on Form W-4VT, wages, and payroll frequency, using the Department of Taxes’ 2026 GB-1210 instructions and tables. The Child Care Contribution is a separate employer payroll tax that the employer may partly recover from employees; it is reported with Vermont withholding on Form WHT-436 but should be shown separately on the wage statement.
2026 Income Tax Withholding Instructions, Tables, and Charts
Current Vermont withholding methods and tables.
View source →LOCAL CONSIDERATIONS
Vermont payroll is driven mainly by state rules
The primary sources reviewed for this page did not identify a municipal wage-withholding tax or local minimum-wage ordinance that changes payroll calculations in Burlington, South Burlington, Rutland, or Montpelier.
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Burlington and South BurlingtonApply the statewide wage-statement, minimum-wage, withholding, Child Care Contribution, and unemployment rules.
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Rutland and MontpelierThe same statewide rules apply.
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New Hampshire and New York commutersEmployees who live or work across state lines can create multi-state withholding questions. Track residence and work location.
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Tipped service employeesVermont’s 2026 basic wage rate for service employees is $7.21, with the employer responsible for any shortfall to the full minimum wage.
A SOURCE-BACKED WORKFLOW
A source-backed workflow for Vermont payroll records
1Confirm coverage and ratesDetermine minimum-wage coverage and apply the 2026 $14.42 minimum or $7.21 service-employee rate where conditions are met.›
2Enter payroll detailsAdd hours, hourly rate, gross pay, deductions, and W-4VT information.›
3Apply withholding and contributionsUse the 2026 GB-1210 tables and the Child Care Contribution, recovering no more than 0.11% from the employee.›
4Generate the statementComplete the Pay Run and show hours, rate, gross pay, and fully itemized deductions.›
5Retain recordsKeep hours and wage records for at least the longer applicable retention period.›
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OFFICIAL VERMONT SOURCES USED FOR THIS PAGE
Official Vermont sources used for this page
01
Vermont Department of Labor · Summary of Vermont Wage and Hour Laws
Wage-statement contents, coverage, and record retention under the Minimum Wage Rules.
02
Vermont Statutes · 21 V.S.A. § 393
Employer records of hours worked and wages paid.
03
Vermont Department of Taxes · 2026 Withholding Instructions (GB-1210)
Current withholding methods and tables.
04
Vermont Department of Taxes · Child Care Contribution
Rate, employee-share limit, and filing.
05
Vermont Department of Labor · 2026 Minimum Wage Announcement
2026 minimum wage and tipped basic wage rate.
06
Vermont Department of Labor · 2026 UI Taxable Wage Base
2026 unemployment taxable wage base.
07
Vermont Department of Labor · Workers’ Compensation Fact Sheet for Employers
Employer workers’ compensation obligations.
RESEARCH & REVIEW
Built from primary sources. Reviewed for accuracy.
This page is built from primary Vermont sources and is periodically reviewed against current agency guidance. We use the Vermont Statutes, Department of Labor wage-and-hour, unemployment, and workers’ compensation materials, and Department of Taxes withholding and Child Care Contribution guidance whenever available.
FREQUENTLY ASKED QUESTIONS
Vermont pay-statement FAQ
What must a Vermont wage statement show?
According to the Department of Labor’s summary of the Minimum Wage Rules, at a minimum: total hours worked, the hourly rate, gross pay, and each deduction fully itemized, provided with each payment of wages.
What is the Vermont Child Care Contribution?
A payroll tax of 0.44% of wages earned in Vermont, owed by the employer. The employer may recover up to one quarter of it—no more than 0.11% of wages—from employees.
What is Vermont’s minimum wage in 2026?
$14.42 per hour effective January 1, 2026. The basic wage rate for tipped service employees is $7.21.
What is Vermont’s 2026 unemployment wage base?
$15,400, up from $14,800 in 2025.
How long should Vermont payroll records be kept?
The Department’s summary describes two years under the minimum-wage law and three years under unemployment law. Keep records for at least the longer applicable period.
Does Vermont have local payroll taxes?
The primary sources reviewed did not identify a municipal wage-withholding tax or local minimum wage in Vermont’s major cities.
ACCURATE RECORDS. SUPPORTING EVIDENCE.
Use accurate records, review the preview, and keep the supporting evidence.
Prepare a Vermont Pay Run, review hours, rates, and the Child Care Contribution before completion, and keep the applicable Vermont sources with your payroll workflow.