Category Archives: Business

Information that is relevant to businesses primarily, whether as the consumer in a transaction, or for resource purposes.

Hiring your first employee

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You’ve established a business as a sole proprietor in Vermont. Even better – you’re growing and need to hire your first employee. Below are the steps you need to take to comply with Federal and State laws. 

A few things upfront. First, if you’re not registered as a corporation or LLC, we strongly recommend you consider changing your registration. Next, employers with more than ten employees have specific record-keeping requirements. If you are hiring a slew of employees at once (yay Vermont jobs!) check out the OSHA site.

1. Federal requirements – What you must do for yourself as an employer

a.   Obtain a Federal Employer Identification Number (EIN).  The EIN gives your business a unique identifier instead of your social security number.  You can apply for an EIN here.

b.   Enroll in the Electronic Federal Tax Payment System (EFTPS) to make Federal tax payments (social security, Medicare, Federal withholding).  Alternately, you can contact your bank to enroll in your bank’s service to make tax payments under the Electronics Federal Tax Payment system. 

c.   Complete and file Form 941 – Employer’s Quarterly Tax Return. This determines amounts you must deposit for social security, Medicare, and Federal withholding taxes. It also determines if you deposit on a semi-weekly or monthly basis.

Note: Form 944 is designed so the smallest employers (those whose annual liability for social security, Medicare, and withheld federal income taxes is $1,000 or less) will file and pay these taxes only once a year instead of every quarter.

d.   Complete and file an Employers Annual Federal Unemployment Tax (FUTA) return. The FUTA tax provides funds for paying unemployment compensation to workers who have lost their jobs, and cannot be deducted from employees’ wages.

e.   Complete and file Form W-2 Wage and Tax Statement and Form W-3 Transmittal of Wage and Tax Statement.  This can be done electronically.

Additional information is available at Publication 15 (Circular E) which defines employees, wages and supplemental wages. Also Publication 15-A provides supplemental information, and Publication 15-B provides a guide to taxability and non-taxability of fringe benefits.

2. Federal requirements – What you must do for employees

a.   Your employee must complete Form I-9 for Employee Eligibility Verification. 

b.   Your employee must fill out Form W-4 for income tax withholding. 

c.   Hold onto these forms for your records.

3. State requirements – Department of Taxes

There are two different accounts to set up with the Vermont Department of Taxes:

a.   Set up a Business Tax Account on the SoS Online Business Portal. This will register your business to withhold tax on employee paychecks. You may already have an account if you collect sales & use or meals & room taxes.

b.   Set up a myVTax account, which allows you to make online filings for all state taxes. 

c.   Calculate State withholding tax. Complete and file Form WHT-436 Quarterly Withholding Reconciliation or Form WHT-434 Annual Withholding Reconciliation on the appropriate due dates.

Note: All businesses should file Form WHT-436 with the State quarterly. Payment frequency to the State will mirror your Federal payment frequency; for example, if you are required to pay your Federal Withholding Tax semiweekly, you are required to pay the Vermont Withholding Tax semiweekly.

4. State requirements – Department of Labor

a.   Register with the Department of Labor to determine if you are liable for unemployment insurance contributions.

  • If so, register with the Vermont Internet Tax and Wage System to make Quarterly Wage and Contribution Reports.

            b.   Establish and maintain a worker’s compensation policy

  • You will need to get a worker’s compensation policy through a private insurer. Your insurer will notify the National Council on Compensation Insurance (NCCI), which will include you on an online database the State can refer to if complaints are received about your business.
  • If your business is structured as a corporation or an LLC, you may elect to exclude up to four corporate officers or LLC members.  In order to do so, you must file a Form 29 with the Vermont Department of Labor.
     

c.   Print out and post the mandatory posters from the Department of Labor website — and familiarize yourself with each one.

d.   Within 10 days of the employee starting work, fill out a New Hire Report.

5. Paying your first paycheck

a.   Calculate the employee’s wage due.

b.   Calculate Federal and State taxes to deduct from wage due. Refer to:

c.   Deduct taxes from wages due.

d.   Sign and issue the paycheck.

6. Mark your calendar

Bi-Weekly  

  • Deposit social security, Medicaid and Federal withholding taxes via EPTPS.
  • Pay State withholding taxes, if applicable.

Monthly

  • Vermont Department of Taxes returns must be postmarked or filed by the 25th of the reporting period (except by the 23rd in February).
  • Vermont Department of Labor Unemployment Insurance payments are due at the end of the month following the reporting period.

Quarterly

Annually

All returns are due by January 31st, including:

  • Federal FUTA returns
  • 1099-miscellaneous returns for payments over $600 to individuals (NOT employees)
  • Federal Form W-3 and Federal Form W-2, with a copy of the W-2 to each employee
  • State Form WHT-434 Annual Withholding Reconciliation

Businesses are encouraged to speak with an accountant and/or attorney to assure compliance. These folks can also help with best practices and policies for: the hiring process, personnel issues, recordkeeping and insurance. 

Questions on the information above can be referred to:

  • Secretary of State | Corporations Division | 802-828-2386 | sos.corporations.support@sec.state.vt.us
  • Department of Taxes | Business Division | 802-828-2551 | tax.business@vermont.gov
  • Department of Labor | Employer Services | 802-828-4344 | labor.uiandwages@vermont.gov
Disclaimer

Vermonter of the Month: Mohamed Basha

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This is a monthly series in which the Attorney General will feature a Vermonter doing exemplary work in their community. Have someone you think should be featured? Email AGO.CAP@vermont.gov.

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Mohamed Basha is the President, CEO and IT Person of TLC Homecare & Nursing. After moving from Chennai, India as a young child, he lived in New York City and New Orleans for a year. He finally settled in Vermont, where he grew up in Burlington.

Mohamed founded TLC in 2006 because he saw a need for a homecare provider who took a holistic approach in providing care and there was no other organization that offered supportive staffing services to local healthcare providers.

After numerous side jobs (such as working in the IT department of two small businesses, driving a taxi on weekends, and waiting/catering during the summer) Mohamed decided to pursue a Nursing Degree from Castleton State College. He also holds a B.A. in Health Science from Castleton and an Associate Degree in Liberal Studies from Community College of Vermont.

When Mohamed is not hard at work running TLC, he can be found spending time with his wife, Allyson, and two children, Nina and Zane. He also enjoys long walks in the summer and riding his motorcycle while enjoying the beauty that Vermont has to offer. He graciously took the time from his busy schedule to answer a few of our questions:

What inspires your work with TLC?

After graduating from nursing school, and working in various healthcare setting, I saw a dire need for home care providers to help seniors age in place.  I further saw a need for flexible staffing providers to help healthcare facilities staff their needs without burning out their own staff.


What impact has TLC had on your community? 

Currently we serve over 200 older adults throughout Vermont and in Upper Valley area.  Out of which, and I am proud to say this, we serve over 70 Veterans in this region.  Furthermore, we are quite active nationally and locally in helping the causes that affect majority of our seniors.  For over four years, we have sent TLC staff to Washington DC and Montpelier to advocate for the Alzheimer’s Association and raise awareness of its impact in our community.  We help raise money, through Golfing 4 Life and other activities, for Cancer Patient Support Services.  We assist with delivering Meals on Wheels at least once a month.  We also partake in various walks, runs, and fundraising events to give back to our community.

What have you learned from your work at TLC?

No two days are ever alike.  Every day brings a set of new challenges and I am always learning something new each day from my staff and the people that we serve.  Nevertheless, it is the stories from seniors who survived the Great Depression and World War II that comes to mind whenever I am asked this question.  Their ability to face adversity and overcome severe obstacles serves as a reminder that we can achieve anything we want if we are persistent and willing to work hard.

What advice do you have for others looking to impact their community?

Giving back to the community can be as little as picking up the trash around your neighborhood to spending countless hours volunteering for other organizations.  However, it is the intention and the willingness to want something better for others is what counts at the end of the day.  So do not be afraid to do even a small part, they all add up to making a bigger impact in our community.

Announcing Vermonter of the Month: Sarah Waring

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This is the first of a monthly series in which the Attorney General will feature a Vermonter doing exemplary work in their community. Have someone you think should be featured? Email AGO.CAP@vermont.gov.

Sarah Waring serves as the Executive Director of the Center for an Agricultural Economy (CAE) building a regenerative, locally based, healthy food system in the NEK and beyond.

Sarah was born and raised in Glover, VT, but spent a decade outside of the state, working in the Rocky Mountains and in Washington DC. Her background includes community development, federal land use planning and management, conservation, outdoor education and non-profit work.

Since coming to the Center for an Agricultural Economy in 2013, she has worked with the Board and staff there to increase the viability of the VT Food Venture Center (VFVC), a shared-use food business incubator and food hub, designed to support entrepreneurs and farmers with industrial kitchens, storage, and technical assistance. She graciously took the time from her busy schedule to answer a few of our questions:

What inspires your work with CAE and VFVC?
First and foremost, I get to work with visionary people, who are also grounded, intelligent and hardworking. That’s motivation to do my own best work. Whether its our staff and volunteers, the farmers who are stewarding the land, or the entrepreneurs who are growing their businesses, we have wonderful people around us. But then secondly, our mission is critical to our region – because we need to build a place-based economy, with local ownership. Its also critical to the globe – because our food system is broken. We can make changes to global trends, like hunger, global warming and more, by starting locally to fix our food system. So that’s the urgency behind the work we do!

What impact has VFVC had on your community?
In the past few years, the VFVC has developed Farm and Food Business Services; working with 18-20 farmers and 12-15 food businesses each year to deep dive into operational viability. The team has also begun the state’s only Farm to Institution processing program – purchasing local farm products from small and medium scale farmers to process and selling to colleges, hospitals and schools. In three years, the sales of locally grown and processed vegetables through the VFVC has grown by 230%.
What have you learned from your work at CAE?
I’ve learned more about food safety than I ever knew before! But really, I do get to work with folks who have deep knowledge of the land, the plants or animals they take care of, or the business model and the food product they are creating. As far as the work we do to support these folks, I’ve been lucky to re-learn that we can’t do this larger food system work alone. All things that are most worthwhile will take partnership, and our organization and team works hard to build trust with our partners.
What advice do you have for others looking to impact their community?
I think the best thing I can say is this – look at the assets and gaps in your own region. Take your time to do your homework on what efforts already exist, and make sure you practice collaboration – because goals and activities go further with many hands being involved! We can create positive impacts on our own, but we can create them even faster with others.

Information on Vermont’s Lead Law and the Landlord Restoration Program

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The Landlord Restoration Program (Program) launched in 2017 by the Attorney General’s Office and the Department of Health. The Program provided: (i) information and resources to landlords, (ii) extended time for repairs, and (iii) a waiver of state enforcement for past non-compliance. The Program, which concluded in 2018, was piloted in five Vermont towns that had elevated blood lead levels in children: Rutland, Bennington, Bellows Falls/Windsor, Barre, and St. Albans. Compliance rates suggest that the pilot program was effective in increasing property owner compliance. Compliance rates went up by an average of 14%, with several towns seeing around 20% increases. 

A copy of the complete report on the Landlord Restoration Program can be found here.

If you are EMP certified, or have an inspector who is EMP certified, you can comply right away by completing your EMPs and filing your statement immediately:

File your annual EMP Compliance Statement

I can’t complete the EMPs right now. What can I do to get in compliance?

Here are steps you can take to get in compliance with Vermont’s Lead Law:

  1. Get EMP certified or hire an EMP contractor
  2. Do your EMPs
  3. File your EMP compliance statement

When do I perform EMPs?

EMPs are annual obligations.  Each year you must inspect your rental property and safely repair deteriorated paint. If you receive a letter to comply within 30 days from the Department of Health, you can request an extension by completing the Department of Health’s Extension of Time form.

How do I perform EMPs?

You can become EMP certified yourself, or hire an EMP contractor, visit: www.leadsafevermont.org. Beware of shortcuts! Make sure your EMP statement is accurate before you file. There are significant penalties for falsely certifying EMP compliance.

My property has been gutted and renovated. Does the law still apply to me?

Yes! If your building has been restored, it still may contain lead. To exempt you from annual EMP filings, a third-party contractor must perform an inspection and prepare a report. This generally costs $500-$1000, and you may be eligible for financial assistance if you rent to low or moderate-income tenants.

You can find information here on hiring a lead contractor, and here is information for lead contractors.

What if a tenant makes a complaint against me for a lead violation?

If you come into compliance voluntarily, there will be no State enforcement for past noncompliance. However, the state cannot waive a private claim a tenant may have.

What if I don’t file an EMP statement?

Failure to comply with the lead law, may leave you exposed to a complaint or future enforcement action. Our goal is to support the efforts of Vermonters who wish to comply with the law.

Questions?

Contact the Vermont Dept. of Health, Asbestos & Lead Regulatory Program, by phone at 802-863-7220 or online at www.healthvermont.gov

Disclaimer

Buying and Selling on Online Listing Sites

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Most Vermonters love a good deal.  So, we know how appealing it can be to search for discounted products through online listing sites.  And, when the deal of the century is finally located, we know how easy it is to want to act quickly, rather than question if the deal is too good to be true. But sometimes the most important thing you can do is stop and verify an online offer before you pay.

At CAP, we typically hear about the times people get scammed online, rather than the times they found a great deal.  Vermonters report scams to our office so we can assist them if there is a way to recoup their money and so that other consumers are made aware that there are scammers lurking online, looking to take your money without earning it.  A couple of weeks ago, we heard from a gentleman hoping to close a deal on purchasing an excavator.  He fulfilled his end of the deal by wiring more than $16,000.  After receiving the funds, the scammer went dark.  This Vermonter was lured into the scam through a blatant lie; from a Craigslist post, he was connected to a realistic-looking eBay site to fulfill his order.  The site however, was not eBay.  The money that was wired was gone within a few moments.

Last year (2016) 122 Vermont consumers reported online listing scams to our office. And, fourteen people reported monetary loss due to wire transferring funds in response to an online listing. The year before (2015) nineteen people reported loss by wire transfer.

Listing scams take on many forms.  Sometimes the scammer responds to a seller post, overpays with a check, and asks for the remainder to be wired back.  Sometimes the post is for a fictitious rental property and the scammer is looking for the deposit and first month’s rent to be sent.  Sometimes the item being sold is a used car, riding lawnmower, or construction equipment.

Scams even happen when you are looking for that perfect puppy or pet to expand your family, but the transport of the animal is held up at the airport or elsewhere.  People have reported trying to buy wedding dresses, only to be bilked of their wedding budget due to scam activity.  The point here is, listing scams can happen with any kind of product or service when you least expect it.  The key to prevention is knowing the signs, taking an extra moment to verify an online offer before you pay, and if you are the victim of a scam report it to our office.

The Attorney General will continue to alert Vermonters about new and ongoing scams.  In the meantime, here are some helpful tips to help you avoid online scams:

Tips to prevent Online Listing scams

Contributing Writer:  Crystal Baldwin