Minimum Wage<\/a><\/p>\n Overtime Pay Rules<\/a><\/p>\n State Unemployment Tax & Rate<\/a><\/p>\n Workers\u2019 Compensation Insurance<\/a><\/p>\n Disability Benefits Insurance<\/a><\/p>\n Domestic Workers\u2019 Bill of Rights<\/a><\/p>\n Paid Leave Laws<\/a><\/p>\n Other State Regulations<\/a><\/p>\n Helpful Links<\/a><\/p>\n Federal Regulations<\/a><\/p>\n [\/et_pb_text][et_pb_heading title=”More from our Learning Library” disabled_on=”on|on|off” admin_label=”Browse Learning Library” _builder_version=”4.27.4″ _module_preset=”default” title_level=”h3″ custom_margin=”17px||26px|||” border_width_bottom=”2px” border_color_bottom=”#0C71C3″ global_module=”41596″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_heading][et_pb_image src=”https:\/\/gtm.com\/household\/wp-content\/uploads\/2025\/03\/Resource-Library-Hero3.png” alt=”free consultation” title_text=”Resource-Library-Hero3″ align=”center” disabled_on=”on|on|off” admin_label=”LL image” _builder_version=”4.27.4″ _module_preset=”_initial” width=”80%” custom_margin=”||0px|||” global_module=”41597″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_image][et_pb_text disabled_on=”on|on|off” admin_label=”LL links” _builder_version=”4.27.4″ _module_preset=”_initial” header_2_text_color=”#666666″ min_height=”59.2px” custom_margin=”||11px|||” custom_padding=”||17px|||” global_module=”41598″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_heading title=”Popular Resources” disabled_on=”on|on|off” admin_label=”LL Featured Resources” _builder_version=”4.27.4″ _module_preset=”default” title_level=”h3″ custom_margin=”17px||26px|||” border_width_bottom=”2px” border_color_bottom=”#0C71C3″ global_module=”41599″ saved_tabs=”all” global_colors_info=”{}”][\/et_pb_heading][et_pb_text disabled_on=”on|on|off” admin_label=”LL featured links” _builder_version=”4.27.4″ _module_preset=”_initial” header_2_text_color=”#666666″ min_height=”59.2px” custom_margin=”||11px|||” custom_padding=”||17px|||” global_module=”41600″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n <\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”3_4″ _builder_version=”4.27.4″ _module_preset=”default” custom_padding_tablet=”60px||||false|false” custom_padding_phone=”30px||||false|false” custom_padding_last_edited=”off|desktop” global_colors_info=”{}”][et_pb_text ul_item_indent=”40px” admin_label=”State Regulations – Intro Text” _builder_version=”4.27.5″ _dynamic_attributes=”link_option_url” _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ link_option_url=”@ET-DC@eyJkeW5hbWljIjp0cnVlLCJjb250ZW50IjoicG9zdF9saW5rX3VybCIsInNldHRpbmdzIjp7fX0=@” z_index_tablet=”500″ use_border_color=”off” global_module=”41634″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n Household employers must comply with applicable tax, wage, and labor laws for nannies, in-home senior caregivers, and other household employees. While federal rules apply to employers nationwide, there are also state- and city-specific regulations employers must follow.<\/p>\n [\/et_pb_text][et_pb_code admin_label=”at a glance Code” module_id=”glance” _builder_version=”4.27.4″ _module_preset=”default” background_color=”#f4f4f4″ custom_margin=”-25px||||false|false” custom_margin_tablet=”0px||||false|false” custom_margin_phone=”0px||||false|false” custom_margin_last_edited=”on|tablet” custom_padding=”20px|20px|20px|20px|true|true” global_colors_info=”{}”]<\/p>\n [et_pb_section global_module=\"41227 \"][\/et_pb_section][\/et_pb_code][et_pb_text ul_item_indent=”40px” admin_label=”minimum wage ” module_id=”minimum” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Household employees must be paid at least the highest applicable federal, state, or local minimum wage rate. Vermont\u2019s minimum wage rate of $14.42\/hour applies.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”overtime ” module_id=”overtime” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Household employees in Vermont are required to be paid at least time and a half for hours worked over 40 in a seven-day workweek. Overtime compensation is not required for live-in employees and or when work is performed on a holiday.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”State Unemployment Tax & Rate header” module_id=”unemployment” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n In Vermont, the new employer SUI (state unemployment insurance) rate for most employers is 1.00 percent on the first $15,400 of each employee’s wages. Employers with previous employees may be subject to a different rate. This is an employer-only tax.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”workers comp ” module_id=”workerscomp” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Household employers in Vermont are not required to have workers\u2019 compensation coverage for any full- or part-time employees. However, you can choose a voluntary policy to protect both you and your employee.\u00a0Get a quote on workers\u2019 compensation insurance<\/a>.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”Disability Benefits Insurance” module_id=”disability” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Vermont does not have disability benefits insurance requirements related to household employment.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”domestic workers bill of rights ” module_id=”domestic” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Vermont does not have a domestic workers’ bill of rights.<\/span><\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”fepa” module_id=”domestic” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n Vermont\u2019s discrimination prohibitions apply to\u00a0all employers (including household employers) with one or more employees<\/strong>. FEPA makes it an \u201cunlawful employment practice\u201d for an employer to discriminate against a person based on:<\/p>\n These are considered “legally protected categories.”<\/p>\n In most instances, the Vermont Fair Employment Protection Act mirrors federal protections under Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, and other federal laws. However, Vermont law is broader than federal law and applies to all employers with one or more employees working in Vermont.<\/p>\n An employer includes individuals, partnerships, labor organizations, government bodies, associations and organizations, and other businesses and agents doing business in the state. Labor unions and employment agencies are also prohibited from discrimination under FEPA.<\/p>\n More information on Vermont’s Fair Employment Practices Act<\/a>.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”paid leave ” module_id=”paidleave” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ hover_enabled=”0″ z_index_tablet=”500″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n The Vermont Family and Medical Leave Insurance Plan<\/a>\u00a0(VT-FMLI), a voluntary<\/strong><\/em> paid family and medical leave program, will give workers access to paid family and medical leave insurance in 2025.<\/p>\n Household employers and household employees who work for Vermont families that do not offer VT-FMLI can choose from several plan design options to meet their workers’ needs and can purchase coverage through the VT-FMLI individual purchasing pool.<\/p>\n Under VT-FMLI, Vermont employees can receive 60 percent wage replacement for six weeks for qualifying events. Qualified events include:<\/p>\n Learn more about\u00a0Vermont\u2019s Voluntary Family and Medical Leave Insurance<\/a>.<\/p>\n The Vermont Earned Sick Time Act requires household employers to provide eligible employees with paid sick time to use for their own health needs or to care for family members. The law applies to most employers with employees working in Vermont and is designed to give workers access to protected, job-secured time off.<\/p>\n Employees are generally eligible if they work an average of at least 18 hours per week during a year. Both full-time and part-time employees may qualify, including household employees.<\/p>\n Eligible employees accrue sick time at a rate of 1 hour for every 52 hours worked<\/strong>, up to a maximum of 40 hours per year<\/strong>.<\/p>\n Learn more about\u00a0Vermont\u2019s Earned Sick Time Act<\/a>.<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”other regs ” module_id=”other” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ hover_enabled=”0″ z_index_tablet=”500″ global_colors_info=”{}” sticky_enabled=”0″]<\/p>\n Vermont has no other regulations related to household employment.<\/span><\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”helpful links section ” module_id=”helpful” _builder_version=”4.27.4″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ z_index_tablet=”500″ global_colors_info=”{}”]<\/p>\n [\/et_pb_text][et_pb_text ul_item_indent=”40px” admin_label=”Federal Regulations” module_id=”federalregulations” _builder_version=”4.27.5″ _module_preset=”_initial” link_font=”||||||||” header_2_text_color=”#212492″ header_3_text_color=”#666666″ header_4_font=”||||||||” header_4_text_color=”#666666″ background_size=”initial” background_position=”top_left” background_repeat=”repeat” z_index_tablet=”500″ box_shadow_horizontal_tablet=”0px” box_shadow_vertical_tablet=”0px” box_shadow_blur_tablet=”40px” box_shadow_spread_tablet=”0px” use_border_color=”off” global_module=”41586″ saved_tabs=”all” global_colors_info=”{}”]<\/p>\n All household employers need to follow certain federal regulations, including:<\/p>\n Social Security and Medicare taxes are commonly referred to as FICA taxes.<\/p>\n If you pay cash wages of $3,000 or more to any household employee in 2026 (or paid a domestic worker $2,800 or more in 2025), you must withhold and pay FICA taxes. FICA taxes are 15.3 percent of cash wages.<\/p>\n As an employer, you pay 7.65 percent (6.2 percent for Social Security and 1.45 percent for Medicare).<\/p>\n Your employee’s share is also 7.65 percent, which you may withhold from their wages or pay yourself.<\/p>\n You don’t withhold or owe FICA taxes on wages you pay to your spouse, child under the age of 21, parent, or any employee under 18 at any time during the calendar year.<\/p>\n If you pay a household employee total cash wages of $1,000 or more in any calendar quarter, you’ll owe federal unemployment tax. This is an employer-only tax. FUTA is 6% of cash wages on the first $7,000 of wages paid to an employee.<\/p>\n If your employee uses their own car in the course of their work, you can reimburse them for mileage. For 2026, the IRS has set the optional standard mileage rate at 72.5 cents per mile driven. Paying mileage is not mandatory in most states, and you can reimburse your employee at a different rate. However, if mileage costs cause your employee to fall below the minimum wage, you must reimburse them for mileage.<\/p>\n Household employers can remit taxes, including FICA, employee income, and federal unemployment, quarterly using Form 1040-ES<\/a>. If a household employer does not remit their taxes quarterly, the entire amount will be due when they file their personal tax return. This could cause an underpayment penalty.<\/p>\n By January 31, household employers must provide Form W-2<\/a> to their employees and submit Form W-3<\/a> and Copy A of Form W-2 to the Social Security Administration. Then, a household employer must file Schedule H<\/a> with their personal tax return. Learn more: How to File Schedule H<\/a><\/p>\n [\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ custom_padding_last_edited=”off|desktop” admin_label=”2025 Blue Call to Action – HH Payroll” _builder_version=”4.27.4″ _module_preset=”_initial” background_color=”#438dd8″ custom_padding=”10px||10px||true|false” background_last_edited=”on|desktop” background_color_gradient_direction_tablet=”180deg” global_module=”40548″ saved_tabs=”all” locked=”off” collapsed=”off” global_colors_info=”{%22gcid-36fd78a7-34bc-404d-873c-dafa34efaae5%22:%91%22colorStart%22%93,%22#1d3557%22:%91%22background_color_gradient_stops%22%93}”][et_pb_row _builder_version=”4.27.4″ _module_preset=”default” custom_padding=”||0px|||” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_heading title=”Questions? Get Help with Household Payroll” _builder_version=”4.27.4″ _module_preset=”default” title_level=”h3″ title_font=”Montserrat|Montserrat_weight|||||||” title_text_align=”center” title_text_color=”#FFFFFF” title_font_size=”32px” title_line_height=”1.2em” custom_margin=”||10px||false|false” title_font_size_tablet=”28px” title_font_size_phone=”20px” title_font_size_last_edited=”on|phone” locked=”off” global_colors_info=”{}”][\/et_pb_heading][\/et_pb_column][\/et_pb_row][et_pb_row column_structure=”1_3,1_3,1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_text quote_border_color=”#FFFFFF” _builder_version=”4.27.4″ _module_preset=”_initial” text_font=”Lato|Lato_weight|||||||” text_text_color=”#FFFFFF” text_font_size=”16px” text_line_height=”1.75em” link_font=”||||on||||” link_text_color=”#FFFFFF” quote_font=”Montserrat|Montserrat_weight|||||||” quote_text_color=”#FFFFFF” header_font=”Montserrat|Montserrat_weight|||||||” header_text_color=”#FFFFFF” header_font_size=”72px” header_line_height=”1.15em” header_2_font=”Montserrat|Montserrat_weight|||||||” header_2_text_color=”#FFFFFF” header_2_font_size=”50px” header_2_line_height=”1.2em” header_3_font=”Montserrat|Montserrat_weight|||||||” header_3_text_color=”#FFFFFF” header_3_font_size=”32px” header_3_line_height=”1.3em” header_4_font=”Montserrat|Montserrat_weight|||||||” header_4_text_color=”#FFFFFF” header_4_font_size=”24px” header_4_line_height=”1.4em” header_5_font=”Montserrat|Montserrat_weight|||||||” header_5_text_color=”#FFFFFF” header_5_font_size=”18px” header_5_line_height=”1.4em” header_6_font=”Montserrat|Montserrat_weight|||||||” header_6_text_color=”#FFFFFF” header_6_line_height=”1.5em” custom_margin=”||||false|false” custom_padding=”40px||||false|false” custom_padding_tablet=”0px||||false|false” custom_padding_phone=”” custom_padding_last_edited=”on|tablet” text_font_size_tablet=”15px” text_font_size_phone=”14px” text_font_size_last_edited=”on|phone” header_font_size_tablet=”40px” header_font_size_phone=”24px” header_font_size_last_edited=”on|desktop” header_2_font_size_tablet=”28px” header_2_font_size_phone=”20px” header_2_font_size_last_edited=”on|phone” header_3_font_size_tablet=”22px” header_3_font_size_phone=”17px” header_3_font_size_last_edited=”on|phone” header_4_font_size_tablet=”18px” header_4_font_size_phone=”15px” header_4_font_size_last_edited=”on|tablet” header_5_font_size_tablet=”15px” header_5_font_size_phone=”14px” header_5_font_size_last_edited=”on|desktop” header_6_font_size_tablet=”13px” header_6_font_size_phone=”13px” header_6_font_size_last_edited=”on|desktop” locked=”off” global_colors_info=”{}”]<\/p>\n A household payroll expert can answer questions you have about your own situation.<\/p>\n Call or chat with us during business hours, or schedule a free consultation at your convenience.<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_image src=”https:\/\/gtm.com\/household\/wp-content\/uploads\/2025\/03\/NeedHelp-illustration.png” title_text=”NeedHelp-illustration” _builder_version=”4.27.4″ _module_preset=”_initial” border_radii=”on|6px|6px|6px|6px” global_colors_info=”{}”][\/et_pb_image][et_pb_text _builder_version=”4.27.4″ _module_preset=”_initial” text_font=”Lato||||||||” text_text_color=”#FFFFFF” text_font_size=”16px” header_2_text_color=”#666666″ header_3_text_color=”#FFFFFF” global_colors_info=”{}”]<\/p>\n Hours: Mon-Fri 8:30 am – 8pm, ET<\/p>\n [\/et_pb_text][\/et_pb_column][et_pb_column type=”1_3″ _builder_version=”4.27.4″ _module_preset=”default” global_colors_info=”{}”][et_pb_button button_url=”https:\/\/outlook.office.com\/book\/GTMPayrollServicesHouseholdPayrollandTaxConsultation@gtm.com\/” url_new_window=”on” button_text=”Schedule a Free Consultation” button_alignment=”center” admin_label=”consultatio button” _builder_version=”4.27.4″ _module_preset=”default” custom_button=”on” button_text_size=”14px” button_text_color=”#1d3557″ button_bg_color=”#FFFFFF” button_border_width=”0px” button_border_radius=”100px” button_font=”Lato|700|||||||” button_icon=”||fa||400″ button_icon_placement=”left” button_on_hover=”off” custom_margin=”48px||||false|false” custom_margin_tablet=”0px||||false|false” custom_margin_phone=”” custom_margin_last_edited=”on|tablet” custom_padding=”12px|15px|12px|30px|true|false” custom_padding_last_edited=”off|desktop” locked=”off” global_colors_info=”{}”][\/et_pb_button][et_pb_button button_url=”https:\/\/alive5.com\/7DWXAu5″ url_new_window=”on” button_text=”Chat During Business Hours” button_alignment=”center” admin_label=”chat Button” _builder_version=”4.27.4″ _module_preset=”default” custom_button=”on” button_text_size=”14px” button_text_color=”#1d3557″ button_bg_color=”#FFFFFF” button_border_width=”0px” button_border_radius=”100px” button_font=”Lato|700|||||||” button_icon=”w||divi||400″ button_icon_placement=”left” button_on_hover=”off” custom_padding=”12px|18px|12px|36px|true|false” locked=”off” global_colors_info=”{}”][\/et_pb_button][\/et_pb_column][\/et_pb_row][\/et_pb_section]<\/p>\n","protected":false},"excerpt":{"rendered":" At a Glance Minimum Wage Overtime Pay Rules State Unemployment Tax & Rate Workers\u2019 Compensation Insurance Disability Benefits Insurance Domestic Workers\u2019 Bill of Rights Paid Leave Laws Other State Regulations Helpful Links Federal Regulations Labor Law Compliance Hiring & Managing Employees Costs & Employee Benefits Payroll & Taxes Nanny Tax Calculator Complete Guide to Household […]<\/p>\n","protected":false},"author":6,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":" Here are the laws affecting household employment in Vermont.<\/p> Minimum Wage<\/strong><\/p> Workers' Compensation Requirements<\/strong><\/p> Household employers in Vermont are not required to have a workers' compensation policy. However, we strongly recommend obtaining one to protect both you and your employee(s).<\/p> Overtime Rules<\/strong><\/p> Hourly employees in Vermont are entitled to a special overtime pay rate of at least 1.5 times their regular hourly wage for all overtime worked, if they work over 40 hours in a week.<\/p> New Employer SUI Rate<\/strong><\/p> This is the State Unemployment Insurance tax rate that all employers pay when they first become employers. Those with previous employees may be subject to a different rate.<\/p> Taxable Wage Base<\/strong><\/p> Also called\u00a0the Social Security Wage Base, this is the maximum income amount for\u00a0which employees must pay Social Security taxes. Employers will usually handle this calculation and withhold the correct taxes from each paycheck, but employees are\u00a0still responsible for reporting the tax.<\/p>\n
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Nanny Taxes At a Glance<\/h4>\n
Minimum Wage<\/h2>\n
Overtime Pay Rules<\/h2>\n
State Unemployment Tax & Rate<\/h2>\n
Workers\u2019 Compensation Insurance<\/h2>\n
Disability Benefits Insurance<\/h2>\n
Domestic Workers\u2019 Bill of Rights<\/h2>\n
Vermont Fair Employment Practices Act (FEPA)<\/h2>\n
\n
Paid Leave Laws<\/h2>\n
Voluntary Paid Family and Medical Leave Program<\/h3>\n
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Vermont Earned Sick Time Act<\/h3>\n
Employee Eligibility<\/h4>\n
Sick Time Accrual<\/h4>\n
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Critical Rules<\/h4>\n
\n
Other State Regulations<\/h2>\n
Helpful Links for Nanny Taxes in Vermont<\/h2>\n
\n
Federal Regulations<\/h2>\n
Fair Labor Standards Act (FLSA) Classification Guidelines<\/h3>\n
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FICA Taxes<\/h3>\n
Federal Unemployment Tax (FUTA)<\/h3>\n
Mileage Reimbursement<\/h3>\n
Remitting Taxes Quarterly<\/h3>\n
Year-End Requirements<\/h3>\n
Call Toll Free: 800-929-9213<\/a><\/span><\/h3>\n
![\"Vermont\"](\"https:\/\/gtm.com\/household\/wp-content\/uploads\/369px-Flag-map_of_Vermont.svg_-185x300.png\")
Household employers must comply with all tax and wage laws that affect nannies and other domestic workers. While federal laws cover employers in all states, there are state-specific and city-specific rules and regulations that employers must also abide by.<\/p>