How Much Does It Cost to Hire an Employee in Vermont? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Vermont.
Hiring a $60,000/year employee in Vermont costs employers approximately $65,886 total in 2026, including $5,886 in mandatory payroll taxes and workers' comp. That's a 1.1x multiplier on base salary.
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Total Cost at $60K Salary
$65,886
Cost multiplier: 1.1x
SUTA Rate (Mid)
1.6%
Wage base: $15,400
Workers' Comp Rate
1.68%
Has state income tax
Key Insight
For a $60,000 salary in Vermont, employers pay $5,886 in mandatory taxes — a 1.1x cost multiplier. Vermont's SUTA rate (1.6%) is below the national average of 1.70%.
Model your specific hire
Use our interactive calculator pre-loaded with Vermont's tax rates. Adjust salary, benefits, and overhead to get your true cost.
Vermont Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.8% – 5.4% |
| SUTA New Employer Rate (typical) | 1.6% |
| SUTA Wage Base | $15,400 |
| Workers' Compensation (avg) | 1.68% of payroll |
| State Income Tax | Yes |
Example Employer Costs in Vermont
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (VT) | $246 | $246 | $246 |
| Workers' Comp | $672 | $1,008 | $1,344 |
| Total Employer Taxes | $4,020 | $5,886 | $7,752 |
| Total Cost (salary + taxes) | $44,020 (1.1x) | $65,886 (1.1x) | $87,752 (1.1x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
Tax rates sourced from IRS Publication 15, SSA COLA notices, and Vermont Department of Labor. Social Security tax is 6.2% of wages up to $184,500. Medicare is 1.45% with no wage cap. FUTA is 0.6% on the first $7,000 after credit.
How Vermont Compares
Vermont's typical SUTA rate of 1.6% is below the national average of ~1.70%. However, with a wage base of $15,400, which is well above the federal minimum of $7,000, the effective SUTA cost per employee can be significant.
Workers' compensation at 1.68% of payroll is above the national average of ~1.20%.
Vermont Employer Environment
Moderate employer costs- State income tax applies — factor into total compensation packages
- SUTA rate 1.6% (wage base $15,400) — in line with national average
- Elevated workers' comp rate (1.68%) — among the higher rates nationally, varies by industry
Vermont's overall employer tax burden is broadly in line with the national average. Review SUTA and workers' comp rates relative to your industry classification for a more precise picture.
Vermont Employment Profile
Vermont has a moderate SUTA wage base and requires paid family leave contributions, with workers' compensation costs that reflect its outdoor economy.
healthcare, tourism & skiing, specialty food manufacturing
Vermont's small workforce and aging demographics create chronic labor shortages in healthcare and hospitality; employers frequently offer sign-on bonuses and relocation assistance.
Cost at Different Salary Levels in Vermont
Total employer cost including all mandatory payroll taxes
Compare Vermont With
Employee Costs in Other States
Hiring Cost by Industry in Vermont
Workers' comp rates vary significantly by industry — restaurant and construction workers cost far more to insure than office staff.
Average Wages by Occupation in Vermont
BLS OEWS 2024Median annual wages from the Bureau of Labor Statistics — use these as your baseline salary when estimating total hiring cost.
| Occupation Group | Median Annual | Employed |
|---|---|---|
| Management | $101,740 | 23,660 |
| Computer and Mathematical | $91,500 | 8,110 |
| Healthcare Practitioners and Technical | $84,660 | 21,630 |
| Architecture and Engineering | $83,190 | 5,900 |
| Legal | $81,660 | 2,110 |
| Business and Financial Operations | $76,760 | 17,520 |
| Life, Physical, and Social Science | $71,180 | 3,240 |
| Installation, Maintenance, and Repair | $59,300 | 10,790 |
States With Similar Hiring Costs
These states have SUTA rates close to Vermont's 1.6% — good for cost benchmarking.
Vermont Business Resources
Employee Cost Calculator
Pre-filled for Vermont — customize salary and benefits
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Salary to Hourly in Vermont
Convert annual salary to hourly with Vermont payroll taxes
Form an LLC in Vermont
Step-by-step LLC formation guide
Specialized Calculators for Vermont Employers
Running a specific type of business? These tools go deeper on costs by industry and location.
Food Truck Startup Costs
foodtruckcost.com — ZIP-level startup cost data
Daycare Cost Calculator
daycarecalc.com — childcare cost benchmarks by ZIP
Elder Care Cost Calculator
eldercarecost.com — senior care facility costs by ZIP
Franchise Budget Calculator
franchisebudget.com — franchise startup cost estimator
Simplify Payroll in Vermont
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