§ 5841 - Requirement and rate of withholding - Vermont Statutes

§ 5841. Requirement and rate of withholding

(a) Every person who is required under the laws of the United States to withhold federal income tax from payments that are also subject to Vermont income tax shall deduct and withhold during the calendar year from the payments made by such person such amount as the commissioner shall prescribe. Every person who makes payments of income with respect to services performed for such person which were previously deferred under a nonqualified deferred compensation plan shall deduct and withhold during the calendar year from the payments made by such person six percent of any payment (including any withheld tax) of such previously deferred income and of income derived from such previously deferred income. The commissioner may authorize any person to deduct and withhold Vermont income tax from any other payments that are subject to the tax imposed by this chapter. Notwithstanding the foregoing, banks (as defined in 8 V.S.A. § 909a(a)) shall not be required to withhold Vermont income tax from payments that are subject to federal back-up withholding.

(b) The commissioner shall establish such withholding tables, schedules or formulae as will result in the withholding of such amounts from the payments made by any person during any taxable year, as shall closely approximate the income tax liabilities of the recipients of those payments with respect to those payments for that year under this chapter. (Added 1966, No. 61 (Sp. Sess.), § 1, eff. Jan. 1, 1966; amended 1985, No. 266 (Adj. Sess.), § 3, eff. June 4, 1986; 1989, No. 210 (Adj. Sess.), § 298, eff. June 1, 1990; No. 222 (Adj. Sess.), § 6, eff. May 31, 1990; 1991, No. 67, § 24, eff. June 19, 1991.)