On June 23, 2020, the Vermont Department of Labor reported that tax rates for experience-rated employers are set to decrease for the fiscal year ending June 30, 2021.
Effective July 1, 2020 through June 30, 2021, tax rates for experienced employers are to be determined with Schedule 1 and will range from 0.40% to 5.40%. Tax rates under Schedule 1 are generally lower than those under Schedule 3, which was in effect from July 1, 2019 through June 30, 2020.
The new-employer tax rate for non-construction industry employers will remain at 1.00% during this time. For new employers in the construction industry, tax rates are set to decrease. The new-employer tax rate for the buildings construction industry (Code 236) is to be 3.50%, down from 4.00%; the new-employer tax rate in the heavy and civil engineering construction industry (Code 237) is to be 4.90%, down from 5.60%; and the new-employer tax rate in the special trade construction industry (Code 238) is to be 4.20%, down from 4.80%.
Tax rates for fiscal year ending June 30, 2021 were calculated based on unemployment tax data from calendar year 2019 and do not take into account the impact of the COVID-19 pandemic, which may affect rates in later years, the department said in a news release.
As always, if there are any questions please do not hesitate to contact us or visit our website at www.thomas-and-company.com.