VT · Cost to hire 2026
How much does it cost to hire an employee in Vermont?
The real first-year cost of a W-2 hire in Vermont is the ongoing fully-loaded payroll plus the one-time spend to recruit, onboard, and equip the person. A $75,000 hire runs about $109,228 in year one.
The first-year cost to hire in Vermont pairs a light recurring state tax burden with the one-time spend it takes to onboard a worker. Year one stacks recruiting, onboarding and training, and equipment and setup, defaulted in HiringMath to roughly $8,500 one-time plus about $1,500 a year in software, on top of every ongoing employer cost. On the recurring side, Vermont's state layer is modest: new employers pay State Unemployment Insurance at 1.0% on the first $14,800 of wages, capping SUI at $148 per worker, one of the lower maximums nationally. Vermont does levy a state income tax on wages, so employers carry a withholding obligation even though it is not a direct employer-side tax. Federal FICA at 7.65% and net FUTA apply in full on top. With the economy anchored by healthcare (the University of Vermont Medical Center is the state's largest employer), precision manufacturing, specialty food production, and a Burlington-to-Stowe tourism corridor, the recurring tax line is small but the first-year setup spend is what separates the offer figure from the real cost. Model both before you commit.
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Pre-filled with Vermont's 1% new-employer SUI rate. Adjust salary, benefits, and one-time costs to fit your hire.
First-year cost of a $75,000 hire in Vermont
| Recurring (annual) | |
| Base salary | $75,000 |
| Employer payroll taxes | $5,928 |
| Workers' comp | $750 |
| Benefits | $10,050 |
| Overhead | $7,500 |
| Software & toolsrecurs yearly | $1,500 |
| One-time (year one) | |
| Recruiting | $4,000 |
| Onboarding & training | $2,000 |
| Equipment & setup | $2,500 |
| Ongoing annual cost (year 2+) | $100,728 |
| Total first-year cost | $109,228 |
First-year cost by salary in Vermont
| Base salary | First-year total |
|---|---|
| $50,000 | $78,815 |
| $75,000 | $109,228 |
| $100,000 | $139,640 |
What drives the cost in Vermont
Vermont's new-employer SUI rate is 1% on the first $14,800 of wages, a maximum of $148 per worker per year (below the national average of 2.07%). That sits on top of 7.65% employer FICA and 0.6% FUTA. Vermont taxes wage income, which the employee pays, so it adds administration but not direct employer cost.
Compare and dig deeper
Weighing an employee against a contractor? See the Vermont W-2 vs 1099 comparison for the breakeven contract rate. Compare neighboring markets, including Alaska, Delaware, Idaho, Iowa, or read how much it costs to hire an employee nationally.
Cost-to-hire FAQ for Vermont
- What does first-year cost to hire include in Vermont?
- It is ongoing fully-loaded payroll plus one-time hiring costs. Recurring items are salary, 7.65% FICA, net FUTA, SUI at 1.0% on the first $14,800, and benefits. One-time items, defaulted in HiringMath to about $8,500 for recruiting, onboarding, training, and equipment, plus roughly $1,500 a year in software, hit mostly in year one.
- How much does Vermont SUI add per employee?
- New employers pay a 1.0% State Unemployment Insurance rate on the first $14,800 of each worker's wages, capping the annual SUI cost at $148 per employee, among the lower maximums in the country. The rate adjusts once Vermont assigns an experience rating based on claims history.
- Does Vermont's state income tax increase what employers pay to hire?
- Not directly. Vermont taxes wage income, so employers must withhold and remit it, but the cost is borne by the employee. The employer's recurring burden is FICA, net FUTA, the 1.0% SUI contribution, and benefits, alongside the one-time setup spend that defines the first year.