What tax forms are required for new hires?

Tax Forms Required for New Hires in Vermont

When hiring employees in Vermont, it is essential to collect and file the correct tax forms to ensure proper payroll processing and compliance with state and federal regulations.

Federal Tax Forms

• Form W-4 (Employee's Withholding Certificate): New employees must complete Form W-4 to determine federal income tax withholding. Employers use this form to calculate the amount of federal taxes to withhold from employee paychecks.
• Form I-9 (Employment Eligibility Verification): This form verifies the employee's eligibility to work in the United States. Employers must retain this form and make it available for inspection.

Vermont State Tax Forms

• Form W-4VT (Vermont Employee's Withholding Allowance Certificate): Vermont requires employees to complete Form W-4VT to establish state income tax withholding. This form ensures the correct amount of Vermont state tax is withheld from wages.

Additional Operational Considerations

• New Hire Reporting: Employers must report new hires to the Vermont New Hire Reporting Center within 20 days of the hire date. This supports child support enforcement and fraud prevention efforts.
• Payroll Setup: Use the information from W-4 and W-4VT forms to set up payroll systems accurately for withholding federal and state taxes.
• Recordkeeping: Maintain all tax forms securely as part of employee records for audit and compliance purposes.

As of 2026, always verify the latest versions of these forms and any updates to reporting requirements on official Vermont and IRS websites to maintain compliance.