Vermont Changes 1099 Tax Reporting

You may have noticed changes related to your Vermont Withholding Tax Reporting.

The State of Vermont has assigned new Withholding account numbers (which now start with WHT) and has redesigned the Annual Withholding Reconciliation (Form WHT-434). On the newly redesigned form there is Part II – VT 1099s which asks that you report the number of 1099s that you are submitting to Vermont. You are not required to submit all of the Forms 1099 that were filed with the IRS to Vermont. You are required to submit 1099 forms to Vermont if:

1. The payment was subject to Vermont withholding or
2. The payment was made to a nonresident of Vermont for services performed in Vermont.

Finally, please note that the Commissioner of Taxes has mandated the electronic filing of Form WHT-434 and the accompanying forms for all employers who will submit 25 or more W-2 and/or 1099 forms. Payroll filing services have been mandated to submit all filings electronically.

http://tax.vermont.gov/sites/tax/files/documents/WithholdingInstructions.pdf

Davis & Hodgdon Associates CPAs is a full-service public accounting firm with offices in Williston and Rutland Vermont. The firm is a member of Vermont Businesses for Social Responsibility (VBSR), Vermont Business Environmental Partnership (VBEP), Lake Champlain Regional Chamber of Commerce (LCRCC), Vermont Chamber of Commerce, and Women Business Owners Network (WBON).  The firm serves its clients by providing progressive, proactive services through expert staff, sophisticated technology, and unparalleled efficiency.