1-----------FINAL DRAFT 1-12-15-------EMPLOYER INFORMATION A-26.indd

Employer Information

Manual

A Guide to Vermont’s

Unemployment Insurance Program

IMPORTANT NOTICE

The contents of this manual are provided for informational purposes only and do not have

the effect of law. 21 V.S.A Chapter 17 provides the legal authority that supports the

information in this manual.

If you need clariﬁ cation or further information, please contact the appropriate ofﬁ ce.

PHONE

(802 area code)

ADMINISTRATIVE OFFICE

Vermont Department of Labor 828-4000

Post Oﬃ ce Box 488, 5 Green Mountain Drive

Montpelier, Vermont 05601-0488

TAX RELATED INFORMATION 828-4344

Employer Account Registration 828-4344

New and Experienced Ratings 828-4344

Quarterly Reports, Adjustments, Penalties and Interest 828-4344

Account Delinquencies and Payment Plans 828-4333

FUTA Certiﬁ cations 828-4344

BENEFIT RELATED INFORMATION

Determinations, Beneﬁ t Payments, Charges to Your Account

Labor Market Statistical Information

1-877-214-3331

828-4

157

Employment Service Activities 828-4342

FAX NUMBERS

Employer Services Unit 828-4248

Program Integrity Unit 828-4046

Unemployment Insurance Claim Center 828-9191 or 828-1071

New Hire Reporting 828-4286

OTHER SERVICES

When contacting the Department of Labor, auxiliary aides and services are available

upon request for individuals with disabilities. Interpretive services are also available for

persons with limited English proﬁ ciency.

TTY/Relay Service 711

TTD Services 802-828-4203

OTHER CONTACTS

www.labor.vermont.gov

828-2286

www.sec.state.vt.us

828-2386

www.tax.vermont.gov

828-2551

Workers' Compensation Division

.O. Box 488, Green Mountain

Drive Montpelier, VT 05601-0488

Vermont Secretary of State

128 State Street

Montpelier, VT 05609-1101

Vermont Department of Taxes

133 State Street

Montpelier, VT 05609-1401

Table of Contents

What Is Unemployment Insurance? ........................................................................................

The Employer’s Role In The Program ........................................................................

How The Program Is Administered ...........................................................................

Employer Responsibilities ........................................................................................................

What Does It Mean When We Say “You Are An Employer”? .............................................

Sole Proprietorships, Partnerships, Limited Liability Companies (LLC)

And Limited Liability Partnerships (LLP) ..................................................................

Who is an “Employee” under the Unemployment Program? .................................

Covered Employment – ABC Test ...............................................................................

The ABC Test vs. the IRS Independent Contractor Test ...........................................

Misclassiﬁ cation .............................................................................................................

Exempt Employment .....................................................................................................

Voluntary Election of Coverage ..................................................................................

Inactive Status ................................................................................................................

Termination of Coverage..............................................................................................

Loss of Experience Rating ............................................................................................

Report Filing And Payment Information .....................................................................

Keeping Records ...........................................................................................................

What Types of Payments are not Considered Wages? ............................................

Employees Who Work in More than One State ........................................................

Power of A orney .........................................................................................................

Filing Quarterly Reports ..............................................................................................

“Due Date” for Filing Quarterly Reports ..................................................................

Calculating Excess Wages ............................................................................................

Health Care Reporting .................................................................................................

Making Corrections to Reports ...................................................................................

Application of Payments Received from Employers ...............................................

Refunds and Adjustments ...........................................................................................

Reimbursement Payment Option ...............................................................................

Changing from a Taxable to a Reimbursable Method of Payment or Vice Versa

Reporting Changes to Your Business .........................................................................

Sale of Your Business Certiﬁ cation .............................................................................

Penalties ..........................................................................................................................

Interest Charges .............................................................................................................

Liens ................................................................................................................................

Assessments ...................................................................................................................

Contacts by a Field Auditor or Other Department Representative .......................

Vermont Department of Labor | i

How to Elect the Reimbursable Option .....................................................................

What is the Deﬁnition of “Wages”? ...........................................................................

Employee Leasing .....................................................................................................................

Requirements for Licensure of Employee Leasing Firms .......................................

Unemployment Insurance Requirements for Employee Leasing ..........................

Unemployment Taxes And Experience Rating .......................................................................

State and Federal Unemployment Taxes ...................................................................

New Employer Rates ....................................................................................................

Experience Rating .........................................................................................................

Qualifying for an Experience Rate ..............................................................................

Determining Your Tax Rate .........................................................................................

Rate Schedule .................................................................................................................

Successor Employer ......................................................................................................

Partial Successor ............................................................................................................

What is “SUTA” Dumping”? .......................................................................................

Unemployment Beneﬁ ts ..........................................................................................................

Providing Information to Your Employees ...............................................................

How Individuals File a Claim for Beneﬁ ts ................................................................

How are Beneﬁts Charged? .........................................................................................

Reducing the Cost of Unemployment Insurance .....................................................

Minimize Charges to Your Account ...........................................................................

How Beneﬁt Eligibility is Determined .......................................................................

Other Eligibility Requirements ...................................................................................

Employee Dismissals and Suitable Work ..................................................................

Disqualifying Remuneration .......................................................................................

Health Leaving Provision ............................................................................................

Illness and Disability Claims .......................................................................................

Continuing Eligibility for Beneﬁ ts ..............................................................................

Disregarded Earnings ...................................................................................................

Extended Beneﬁ ts ..........................................................................................................

Unemployment Insurance Program Integrity Activities .......................................................

Overpayment and Fraud Prevention .........................................................................

New Hire Report Cross-Matches ................................................................................

What We Do with the Information.............................................................................

Delinquent Collection ...................................................................................................

Beneﬁt Quality Control ................................................................................................

Revenue Quality Control .............................................................................................

Table of Contents (continued)

ii | Table of Contents

Benefit Ratio...................................................................................................................

Unemployment Claims Adjudication ......................................................................................

Notices and Information Requests .............................................................................

Instructions for Completing Request for Separation Forms ...................................

Education Institutions ..................................................................................................

Appeals In The Unemployment Insurance Program .................................................

Participating in the Appeals Process ..........................................................................

What are the Steps in the Appeals Process? ..............................................................

The Hearing Before An Administrative Law Judge .................................................

Do You Need a Lawyer?...............................................................................................

Limited English Proﬁciency (LEP) and Sign Language Interpreters. ....................

Americans with Disabilities Act..................................................................................

Notice of Hearing ..........................................................................................................

Evaluate and Prepare Your Evidence .........................................................................

Which Party Has the Burden of Proof? ......................................................................

What Goes on at the Hearing Before the Administrative Law Judge? ..................

Did You Personally Observe the Incident? ................................................................

The Importance of Witnesses & Subpoenas ..............................................................

Contacts with the Administrative Law Judge Outside of the Hearing .................

Postponement of a Hearing .........................................................................................

Withdrawal of an Appeal .............................................................................................

Appeals to the Employment Board ............................................................................

Appeals to the Supreme Court ....................................................................................

Other Programs and Divisions Within the Department .......................................................

Wage and Hour Program .............................................................................................

Beneﬁts or Wage Supplements....................................................................................

Minimum Wage .............................................................................................................

Labor Market Information ...........................................................................................

Workforce Development ..............................................................................................

Vermont Job Link ..........................................................................................................

Workplace Safety Programs ........................................................................................

The Green Mountain Voluntary Protection Program ..............................................

Project WorkSAFE .........................................................................................................

The Vermont Passenger Tramway Program .............................................................

Workers’ Compensation Program ..............................................................................

Unemployment Insurance and Wage Division Contact Information....................

Forms ........................................................................................ (Back of Guide)

Limited Power of A orney (C-50) .................................................(Back of Guide)

Notice of Change (C-36) ..................................................................(Back of Guide)

Table of Contents (continued)

Vermont Department of Labor | iii

WHAT IS UNEMPLOYMENT INSURANCE?

Since the early 1900’s Unemployment Insurance in one form or another has been accepted and

practiced in both Europe and North America. Not until the disastrous depression of the 1930’s,

however, was there widespread recognition in this country of the need for federal legislation to

cushion the impact of crippling economic downturns.

In 1935, the U.S. Congress passed the Unemployment Insurance provisions of the So

cial

Security Act. This established a federal-state system of paying monetary beneﬁ ts to

eligible unemployed persons. Vermont’s Unemployment Compensation Law was

enacted in 1936 and was fully operative by 1938.

Over the years there have been substantial changes in the program, but the basic prin-

ciples which underpin the Unemployment Insurance program remain the same.

Among those principles are:

1. That the primary objective of Unemployment Insurance is to alleviate the hardship

of lost wages for workers who become involuntarily unemployed,

and who are able and willing to accept suitable jobs which are available;

That eligible claimants receive Unemployment Insurance payments not as charity

but as a matter of right - and no “means” or “needs” test is involved;

That payments to the unemployed, though only a partial replacement of the

lost wages, permit continuation of the unemployed individual’s non-deferrable

purchases. This helps those individuals and businesses they buy from, and often

prevents secondary unemployment that would result if the total amount of

wages lost through unemployment was completely withdrawn from circulation;

That unemployment is a normal accompaniment of production, and Unemploy-

ment Insurance is a production cost, which should be borne by management as

are other business costs. For that reason, taxes are collected solely from employers,

which is used to build up the state unemployment trust funds, from which unem-

ployment benefits are paid; and

That, from the standpoint of employers, Unemployment Insurance for short spells

of unemployment tends to hold together a labor force, that can be called upon

when business improves.

1 | Employer Information Manual

The Employer’s Role in the Program

The employer plays a critical role in the program. First of all, the costs of the program are borne

entirely by the employers. Employers pay two taxes for unemployment insurance. One tax is

paid to the State of Vermont Department of Labor (VDOL) and is used solely for the payment of

beneﬁts. The second tax is paid to the federal government and is used to pay for the cost of

administering the program, to make loans to replenish state trust funds, and to pay for the

federal share of the cost of any extended beneﬁts program that may be in effect.

The employer also plays a critical role in the administration of the program by:

1. providing wage data that is used to compute beneﬁ t eligibility;

2. responding to requests for information; and

3. participating in the claims adjudication and appeals process so that only those

individuals who are unemployed through no fault of their own will be awarded

beneﬁ ts. Employers also help ensure the integrity of the program by reporting

potentially fraudulent activities and by not enabling individuals who are receiving

beneﬁ ts to also work oﬀ the books at the same time.

Since the unemployment trust fund is funded only through the payment of employer

taxes, and is the only source of beneﬁt payments, the cost of unemployment benefits is

assessed either directly to those employers who employed the individual receiving

beneﬁts or by all other employers when beneﬁts are not charged to speciﬁc employer

accounts. Non-charging of beneﬁts occurs when individuals ﬁle claims against

companies that have gone out of business. It also occurs under certain statutory provi-

sions where beneﬁ ts are allowed but not charged to a speciﬁ c employer account. For

example, when someone is discharged for misconduct, and misconduct is proven by

the employer, payment to the claimant is denied for a set period of time, after which

the claimant may still receive a full 20 to 26 weeks of full beneﬁ ts provided s/he is

otherwise eligible. Since the statute provides that an employer who discharges an

individual for misconduct shall not be charged with the cost of beneﬁ ts, those beneﬁ ts

are “socialized”, which means that all other employers pay a share of the cost of those

beneﬁ ts. Sometimes the last employer in time is not subject to beneﬁ t charging be-

cause they are not a “base period” employer, and in those circumstances, there may be

less incentive for the employer to participate in the process by providing information

that might lead to a legal disqualiﬁ cation of the claim, but over time, the cost of not

participating in the process can be greater than the time it takes to respond to a notice

requesting separation information and/or follow up questions from a Claims Adju-

dicator. Since employers are the only one’s who pay, it is important for employers to

participate. It is part of our job at the Vermont Department of Labor to help make it

easier for employers to participate in the process.

Vermont Department of Labor | 2

How the Program is Administered

The Vermont Department of Labor administers the Unemployment Insurance program

from a central oﬃce and a telephone claim center both of which are located in Montpelier.

The employer unemployment tax program and Oﬃce of Program Integrity, which are

responsible for assigning employer tax rates and UI integrity activities, is located in the

Central Oﬃce. Additionally the oﬃce of the Administrative Law Judge and the

Employment Security Board is housed in the Central Oﬃce. Individuals who are

unemployed ﬁle their claim for beneﬁts by calling the claim center. The Claims

Adjudication process is also administered from the Claim Center and employers with

questions related to benefit charges also interact with employees at the Claim Center. The

Department also has Field Auditors who work from various locations around the State.

The Career Resource Centers, located throughout the State, provide the Department’s

other services to both employers and the general public. Employers can contact their

local Resource Center to place job orders and obtain information on qualiﬁed

applicants for open positions. The Unemployment Insurance program works with staﬀ

in the Resource Centers to facilitate the reemployment of unemployment insurance

claimants.

3 | Employer Information Manual

EMPLOYER RESPONSIBILITIES

What Does It Mean When We Say “You Are An Employer”?

For unemployment insurance purposes, an employer is a legal entity that is required by law to

furnish unemployment insurance coverage to one or more individuals. An employer can be a

sole-proprietorship, a partnership, a limited liability company (LLC, LLP, L3C), a non-proﬁ t,

a corporation, or any other entity for whom a worker performs services. There are a number

of ways that an entity is deemed to be an employer for purposes of furnishing unemployment

insurance coverage, including an entity which:

1. Employs one or more persons during some part of a day in each of at least 20

diﬀ erent weeks (not necessarily consecutive) in either the current or the pre-

ceding calendar year in general employment;

2. Pays at least $1,500 in gross wages during any calendar quarter in either the

current or the preceding calendar year, regardless of the number of employees;

3. Is a religious (other than a Church), charitable, educational or other organiza-

tion exempt under Section 501(c)(3) of the Internal Revenue Code and have at

least four employees for twenty diﬀ erent weeks (not necessarily consecutive)

in either the current or preceding calendar year;

4. Pays cash wages of $1,000 or more in gross wages in any calendar quarter for

domestic services in a private home;

Pays $20,000 or more in gross wages in any calendar quarter for agricultural

services or employs ten or more workers in agricultural employment, in-

cluding legal aliens, during some part of a day in each of at least 20 diﬀ erent

calendar weeks (not necessarily consecutive) in either the current or preceding

calendar year;

Is a state or any political subdivision thereof;

Succeeds to the business of any employer already covered under the Vermont

Unemployment Compensation laws;

Is (or becomes) liable under the Federal Unemployment Tax Act (FUTA) and

furnishes any employment in this State to individuals hired for a speciﬁc job

in Vermont regardless of the number hired or the number of weeks employed;

Voluntarily elects to provide unemployment coverage to domestic or agricul-

tural workers even though it is not required, unless otherwise exempted by

Vermont Unemployment Compensation law; or

10. Begins employing again after a period of inactivity of less than 3 years.

Registration information can be found on our website at:

www.labor.vermont.gov

Vermont Department of Labor | 4

Who is an “Employee”

Under the Unemployment

Program?

The term “employee” is not deﬁ ned in

statute. When we refer to an individual as

an “employee” that means an individual

who is entitled to be covered for unem-

ployment purposes. An “employee” for

unemployment insurance purposes may

include someone who is otherwise consid-

ered to be an “independent contractor”. In

general, it is the nature of the relationship

between an employer and the individu-

als who provide services to that employer

that determines whether or not they are

employees.

The services may be performed on a

full-time, part-time, temporary, seasonal,

or probationary basis. They may be per-

formed on or oﬀ your premises or in the

employees’ own homes.

Because it is the nature of the relation-

ship that controls whether someone is an

“employee” for unemployment purposes,

a “contract” does not necessarily change

the relationship from employer/employee

to something else. The “ABC” test

determines if the individual is an

employee for unemployment insurance

purposes. Sec 21 V.S.A. §.

Sole Proprietorships (SP)

Partnerships (PTR)

Limited Liability Companies

(LLC)

Low-Proﬁ t Limited Liability

Companies (L3C)

And Limited Liability

Partnerships (LLP)

With the exception noted below, pay-

ments made by an SP, PTR, LLC, L3C, or

LLP to its respective owner or owners/

members are not considered to be

“wages” for unemployment insurance

purposes. These payments are not report-

able, cannot be used to qualify for unem-

ployment beneﬁts, and are not taxable

for unemployment insurance purposes.

However, the owners/members of a multi

member LLC, L3C, or LLP may elect

recognition and classiﬁcation as a

corporation with the Internal Revenue

Service (IRS). If such an election is made,

payments made by such an entity to its

respective members will be treated as

wages. To have payments to members of

an LLC, L3C, or LLP treated as wages, the

LLC, L3C, or LLP must provide this

Department with a copy of their IRS elec-

tion (Form 8832 - Entity Classiﬁcation and

Election or Form 2553 - Election by Small

Business Companies) and be registered

with the Secretary of State accordingly.

Once this has been conﬁrmed and the

appropriate documentation has been

received, all remuneration paid by it for

services performed by the member(s)/

manager(s) are reportable and taxable

and may be used in determining

unemployment beneﬁt eligibility.

5 | Employer Information Manual

Covered Employment –

ABC Test

In order to determine whether an em-

ployer is required to provide unem-

ployment insurance coverage to an

individual, the Department utilizes an

employment “test”. Under statute and

case law, an “employment” relationship

will exist (unemployment insurance

coverage is required) unless and until

the employer is able to demonstrate

that all three parts of the so-called “ABC

Test” are met. Those parts are:

A. Such individual has been and

will continue to be free from

control or direction over the

performance of such services,

both under his contract of

service and in fact; and

B. Such service is either outside

the usual course of the busi-

ness for which such service

is performed, or that such

service is performed outside

of all the places of business of

the enterprise for which such

service is performed; and

C. Such individual is customar-

ily engaged in an indepen-

dently established trade,

occupation, profession, or

business.

• ALL three parts of the above test must

be met. If only one or two of them

can be shown, the individuals work is

considered to be employment covered

under the unemployment insurance

program and contributions (taxes) must

be paid on the person’s wages.

The Vermont Legislature chose to use the

ABC test, which is much more inclusive

than other employment “tests”, in order

to ensure broad unemployment insurance

coverage. There has been signiﬁcant case

law developed over the years that helps

deﬁne situations where unemployment

coverage must be provided. The Vermont

Supreme Court has made it clear that

direction and control will exist where the

employer has the “right” to provide

direction and control, regardless of

whether such direction and control is

actually exercised. The employer’s usual

course of business is any business activity

the employer chooses to engage. Likewise,

the employer’s place of business is all

places where the employer conducts its

business, not just the main location or

oﬃce from which the employer conducts

its business. Finally, being independently

established means being established in a

similar type of occupation or trade as the

one being examined, and generally the

individual must have some history of

providing similar services for others in

order for the C part of the test to be met.

In the case of determining coverage for

individuals who are in harvesting or

transportation of timber to market or

employed as a stone artisan, only the A

and C parts of the ABC test must be met,

provided the individual furnishes the

equipment, tools, and supplies necessary

to perform the required services.

The ABC Test vs. the IRS

Independent Contractor Test

The Internal Revenue Service uses a dif-

ferent, less inclusive test to determine if

an individual is an employee or an inde-

pendent contractor. Basically, the IRS test

is similar to the A part of the unemploy-

Vermont Department of Labor | 6

as independent subcontractors is the

single most common problem with regard

to the proper reporting of individuals for

unemployment insurance purposes.

Misclassiﬁ cation

Misclassiﬁcation is when a worker is not

properly classiﬁed as an employee and is

not reported to this Department for

unemployment insurance coverage. In

such situations the employer is subject to a

penalty of up to $5,000 for each improperly

classiﬁed employee unreported. In

addition, the employer may be prohibited

from contracting, directly or indirectly,

with the State or any of its subdivisions for

up to three years.

ment ABC Test and only looks at whether

the employer provides direction and

control over the services being performed.

The courts have considered many facts in

deciding whether a worker is an inde-

pendent contractor or an employee. These

relevant facts fall into three main catego-

ries: behavioral control; ﬁnancial control;

and relationship of the parties. It is pos-

sible to reach diﬀerent conclusions on the

employment status of an individual when

diﬀerent tests are used.

Employers should understand that the

Department will follow Vermont law and

use the ABC test to determine if a worker

is an employee for unemployment insur-

ance purposes. This is true even if the IRS

“Evidentiary Factors” test has a diﬀerent

outcome. Misclassification of employees

7 | Employer Information Manual

Exempt Employment

The following services are not considered to be “employment” for unemployment in-

surance purposes:

Services by elected oﬃcials to state and local governments, members

of a legislative body or the judiciary, members of the State national

guard or air national guard, and certain temporary “emergency

employment” and major policy-making positions.

Some services for nonproﬁt religious, charitable, and educational orga-

nizations and for State hospitals or institutions of higher education.

Casual labor of not more than $50 that is not part of the employer’s

trade or business (this exclusion does not apply if the employer is a

corporation).

4. Services of individuals as insurance agents or solicitors, if paid solely

by commissions.

5. Services of individuals with J1 VISAs, if appropriate documentation

can be provided.

Services of individuals as salesmen, agents, or solicitors, if paid solely

by commissions and the occupation is required to be licensed by State

law.

Services of the sole proprietor or partners, or their family members

(parent, spouse, civil union partner, child, or stepchild under the age

of 18).

Services to a multi-member Limited Liability Company (LLC), Low-

Proﬁt Limited Liability Company (L3C), or Limited Liability Part-

nership (LLP) by its members, managing members, or managers are

exempted from coverage, unless they provide the Department a copy

of their IRS election (Form 8832-Entity Classiﬁcation and Election or

Form 2553 - Election by Small Business Companies). In addition, the

same family exemptions apply as follows: Single member/manager

LLC is recognized as a proprietorship for reporting purposes while

multi-member LLC/L3C/LLP is recognized as a partnership for

reporting purposes.

9. Services in railroad employment.

10. Services on foreign vessels.

11. Some services in ﬁ shing employment.

12. Services in student work experience programs - performing services as

part of the school’s academic program.

Vermont Department of Labor | 8

13. Services by students in regular a endance at the educational institution that

employs them or by spouses of students if the spouses are employed as part of a

ﬁ nancial assistance program for the students.

14. Some services performed by students for organized summer camps.

15. Wages paid to a direct seller, provided all of the following conditions are met:

The individual is engaged in one of the following trades or businesses:

Selling or soliciting the sale of consumer products, including services, either –

A. In a home or other place that is not a permanent retail establishment; or

B. To any buyer on a buy-sell basis or a deposit-commission basis for resale

in a home or other place that is not a permanent retail establishment.

ii.

Delivering or distributing newspapers or shopping news (including any

services directly related to that trade or business).

b. Substantially all the individual’s pay for the services described in (a) is directly

related to sales or other output (including the performance of services) rather

than to the number of hours worked.

The services are performed under a wri en contract between the individual

and the person for whom the services are performed and the contract provides

that the individual will not be treated as an employ

ee for federal and state tax

purposes.

Voluntary Election of Coverage

Employers who are not required under law to provide unemployment insurance

coverage to workers can, in most situations, elect to provide such coverage on a

voluntary basis. An application (Form C-1A) must be completed and ﬁled with the

Commissioner of Labor who will provide approval in writing, provided such request is

received by December 1st prior to the year coverage is requested. Voluntary coverage

becomes eﬀective on January 1st or the ﬁrst day of employment of the year being

requested and will remain in eﬀect for two full calendar years.

Employers made liable by approval of their Voluntary Election request who

thereafter meet liability as described previously (What Does It Mean When We Say

“You Are An Employer”?) are required by law to furnish unemployment insurance

coverage for as long as they are liable.

Sole proprietors, partners of a partnership, managers or managing members of an LLC,

or any other employees speciﬁed as exempt cannot “elect” coverage for their

employment, nor can they draw beneﬁts based on the wages earned from their own

business.

9 | Employer Information Manual

Inactive Status

Seasonal employers and other employers

who may have no employees for a period

of time can request to have their account

made inactive. By making an account

inactive, quarterly wage and contribution

reports are not required to be ﬁled until

such time as employment begins again.

Requests to make an account inactive

should be made in writing to the

Department. Making an account inactive

does not relieve the employer of its

responsibilities, if employment occurs

during the period of inactivity.

Termination of Coverage

An employer found to be liable for un-

employment insurance coverage remains

liable for at least two calendar years,

regardless of the size of the payroll or the

number of individuals employed.

After two calendar years of liability, a

business that drops below the required

number of employees and pays less than

the minimum amount in wages/employ-

ment ($1,500 per calendar quarter for

regular employment/one or more

employees for 20 weeks in a calendar

year, $20,000 per calendar quarter for

agricultural/10 or more employees for 20

weeks in a calendar year or $1,000 in

cash wages per calendar quarter for

domestic employment) for the preceding

calendar year may make a request

to terminate coverage. A written request

must be ﬁled with this Department

before March 31st stating that the

minimum requirements for liability

were not met during the preceding

calendar year. Termination, if granted,

is eﬀective January 1st of the year in

which the request was made. Requests

received April 1st or later will not be

made eﬀective until January 1st of the

following year, and then only if there is

no material change in the employment

situation between the date of the

request and the beginning of the

following calendar year.

The Commissioner may also end the cov-

erage of any employing unit when termi-

nation is in order, even if the employer

has not requested termination.

Termination of coverage lasts until the

employer becomes liable under the law

regardless of the time between

termination and renewal of liability.

Loss of Experience Rating

If an employer’s unemployment insur-

ance account is inactive or terminated

and remains so for three calendar

years and then starts employing again,

they will be assigned the rate of a new

employer.

Vermont Department of Labor | 10

REPORT FILING AND PAYMENT

INFORMATION

Unemployment insurance is ﬁ nanced through an employer payroll tax. The employee makes no

contribution themselves, and this tax cannot be withheld from an employee’s pay.

Vermont unemployment taxes are due quarterly, along with the quarterly wage report.

Although you must report all wages paid to each employee on the wage report, you pay

taxes according to the taxable wage base schedule for each worker in a calendar year.

It is important to pay all state unemployment taxes when due. If an employer fails to

pay state unemployment taxes when due, that employer may lose an important federal

tax credit. For more information on the FUTA tax see UNEMPLOYMENT TAXES AND

EXPERIENCE RATING, State and Federal Unemployment Taxes further in this manual.

Keeping Records

Each employing unit shall maintain and preserve for four years accounts and records

with respect to workers engaged in subject employment and non-subject employment

which shall show:

(

)

For each pay period:

(1) The date and total amount of remuneration paid for subject employment.

(2) The date and total amount of remuneration paid for non-subject

employment.

(3) The beginning and ending dates of each pay period.

(

)

The beginning and ending dates of such subject and non-subject

employment.

(5) Date during each week on which the largest number of individuals

worked and the number of individuals who worked on that day.

(b) For each worker:

(1) Address and social security number.

(2) Place of employment.

(3) Hourly rate of pay or salary amount and the frequency of payment.

(4) Date on which worker was hired, or returned to work after a temporary layoff,

and date separated from work and reason therefore.

(5) The actual days worker performed services in employment each week and the

actual number of hours worker performed services in employment each day.

(6) Total remuneration paid in each quarter.

11 | Employer Information Manual

(7) Worker’s remuneration paid for each pay period showing separately:

Money payments (excluding special remuneration).

Special remuneration of all kinds showing separately:

(i) Money payments.

(ii) Reasonable cash value of payments in any medium other than money.

(iii) The nature of such special remuneration.

(iv) The period or periods during which the services were performed

for which the special remuneration was paid.

The reasonable cash value of remuneration paid by the

employing unit in any medium other than cash, (e.g. lodging, room

and board, etc.).

The amount of gratuities received from persons other than his

or her employing unit and reported by the workers to his or

her employing unit.

Amount paid worker as allowances or reimbursements for

traveling or other business expenses, dates of payment, and the

amounts of such expenditures actually incurred and accounted

for by him or her.

Each employing unit shall keep its payroll records in such form that it will be possible

for inspection thereof to determine with respect to each worker in its employ who may

be eligible for partial beneﬁ ts:

(1) Wages earned for any employment during a “week” beginning at

12:00 a.m. Sunday - 11:59 p.m. Saturday.

(2) Whether any week was in fact a week of less than full time work, as

deﬁ ned in VDOL Rule.

(3) Time lost, if any, by each worker and reason thereof.

An employing unit having its principal place of business outside of Vermont shall

maintain payroll records in this State with respect to wages paid to employees who

perform some service in this State, provided, however, that an out-of-state

employing unit may, with the approval of the Commissioner, maintain such payroll

records outside the State upon its agreement that it will, when requested to do so,

furnish the Commissioner with a true and correct copy of such payroll records.

Each employing unit shall make available upon request the following records and

documents, to enable proper assessment of covered employment under the

applicable Unemployment Compensation laws and the associated tax liabilities:

Vermont Department of Labor | 12

What is the Deﬁ nition

of “Wages”?

“Wages” means all remuneration paid for

services rendered by an individual, in-

cluding commissions and bonuses, and

the cash value of all remuneration paid in

any medium other than cash. Gratuities

customarily received by an individual in

the course of employment from persons

other than the employer and reported by

the individual to the employer shall be

treated as wages paid by the employer.

The reasonable cash value of remun-

eration paid in any medium other than

cash shall be estimated and determined in

accordance with rules prescribed by the

Employment Security Board. The value of

room and board, if set by agreement

between the employer and employee,

shall be reported as wages. Where there is

no agreement, the Department uses the

minimum values assigned to room and

board as established under the Wage and

Hour program.

Further information and deﬁ nitions of

“wages” is indicated on the “General In-

formation” provided for ﬁ ling the C-101,

Wage and Contribution Report.

What Types of Payments Are

Not Considered Wages?

By statute, the term “wages” shall not

include:

(A) The amount of any payment (includ-

ing any amount paid by an employer for

insurance or annuities, or into a fund, to

provide for any such payment) made to,

or on behalf of, an employee or any of

his dependents under a plan or system

established by an employer which makes

provision for his employees generally

(or for his employees generally and their

13 | Employer Information Manual

(1)

Check stubs and canceled checks for

all payments.

Cash receipts and disbursement re-

cords.

Payroll journal and time cards.

General Journal and general ledger.

Petty Cash Ledger.

Vendor Invoice Payments.

Copies of tax reports ﬁled with all

federal and state agencies.

Copies of W-2s, W-3s, and 1099s.

(2)

(3)

(4)

(5)

(6)

(7)

(8)

of the employee) of the tax imposed

upon an employee under section 3101

of the United States Internal Revenue

Code;

(E) Any amounts received from the fed-

eral government by members of the

national guard and organized reserve,

as drill pay, including longevity pay

and allowances.

State law uses similar language as found in

the Federal Unemployment Tax Act and

for many years the types of payments

excluded under both federal and state law

were the same. Currently, federal law

excludes some types of payments from the

deﬁnition of wages under federal law that

are not excluded in state law. For example,

federal law excludes payments made

under a Section 125 Cafeteria Plan from

the deﬁnition of wages. Any payment

excluded under the federal deﬁnition that

is not excluded under State law shall be

reported as wages. State law also provides

that if federal law changes so that one or

more of the payments currently excluded

under both State and federal law is no

longer excluded under federal law, then

State law automatically no longer excludes

those same types of payments.

Employees Who Work in

More than One State

To avoid conﬂicts and overlapping unem-

ployment insurance coverage on an em-

ployee who performs services in more than

one state for the same business, four tests

determine which state receives the

unemployment insurance taxes for that

individual. The tests are applied in the

following order to each employee and not

the employer:

Place Where Work is Localized - If the

individual works entirely within this

State, Vermont law would cover them.

dependents) or for a class or classes of his

employees (or for a class or classes of his

employees and their dependents), on ac-

count of:

(i) sickness or accident disability (but, in

the case of payments made directly to an

employee or any of his or her dependents,

this subparagraph shall exclude from the

term “wages” only payments which are

received under a workers’ compensation

law); or

(ii) medical or hospitalization expenses

in connection with sickness or accident

disability; or

(iii) death;

(B) Any payment on account of sickness

or accident disability, or medical

or hospitalization expenses in con-

nection with sickness or accident

disability, made by an employer to,

or on behalf of, an employee after

the expiration of six calendar months

following the last calendar month in

which the employee worked for such

employer;

of, an employee or his beneﬁ ciary (i)

from or to a trust described in section

401(a) of the United States Internal

Revenue Code which is exempt from

tax under section 501(a) of the United

States Internal Revenue Code at the

time of such payment unless such

payment is made to an employee of

the trust as remuneration for services

rendered as such employee and not

as a beneﬁ ciary of the trust, or (ii)

under or to an annuity plan which,

at the time of such payment, is a plan

described in section 403(a) of the

United States Internal Revenue Code;

(D The payment by an employer (with-

out deduction from the remuneration

Vermont Department of Labor | 14

Place of Residence - If none of the three

tests apply in a given case, the individ-

ual’s work will be covered by Vermont

law if the individual both lives and

does some work in Vermont.

Power of Attorney

A power of a orney is necessary for an

employer representative to receive conﬁ -

dential information and to perform any

and all acts the employer can perform

relating to the Vermont Unemployment In-

surance Program. The necessary form (C-

50) can be found in the back of this manual

or on our website.

Filing Quarterly Reports

The C-101 Employer’s Quarterly Wage

and Contribution report shall be ﬁ led

every quarter, even if no wages were paid.

Employers will be reminded about this

ﬁling responsibility approximately 40 days

before it is due. All employers are required

to ﬁle electronically using our Internet

application. This Internet application

provides the opportunity for electronic

payment as well. On-line ﬁling instruct-

ions can be found on our web site under

“Employer Online Services”. Speciﬁcations

for employers with more than 250 em-

ployees (C-129A) and for payroll services

(C-29) may be found on our website under

“Forms” or by contacting our Employer

Services Unit at 802-828-4344.

If they work in Vermont and in an-

other state, but the work in the other

state is incidental to the individual’s

services performed within Vermont,

they would be subject to Vermont law.

The word “incidental” is interpreted to

mean temporary or transitory in na-

ture or consisting of isolated transac-

tions.

2. Place Where Base of Operations is

Located - If the individual’s work is

not localized in any state, they will

be covered by Vermont law if they do

some work in Vermont and their base

of operations is in Vermont. “Base of

operations” means a place from which

the employee starts work and to which

they customarily return to receive

instructions from their employer, com-

munications from their customers, to

replenish stocks of material, repair

equipment, etc. It may be a business of-

ﬁ ce, the worker’s home, or some other

place speciﬁ ed in the contract of em-

ployment.

Place From Which the Work is Directed

or Controlled - If the individual has no

base of operations or if they perform no

work in the state, that has their base of

operations, their services will be

covered by Vermont law if they are

directed or controlled from Vermont.

This refers to a company’s headquar-

ters and not the base of operations for a

manager or foreman who directly su-

pervises the worker, if that manager or

foreman receives general instructions

from another site.

“Due Date” for Filing Quarterly Reports

For Wages Paid During Report Due By:

Jan, Feb, Mar April 30

Apr, May, Jun July 31

Jul, Aug, Sept October 31

Oct, Nov, Dec January 31

15 | Employer Information Manual

graphic data for each employee, the

number of employees for each month of

the quarter, and the total gross wages

paid during the quarter.

Complete ﬁling instructions for the

Quarterly Employer Wage and Contri-

bution Report have been provided under

separate cover. Additional copies, (Form

C-101) including instructions, can be

found on our website or by contacting

the Employer Services Unit at

802-828-4344.

The United States Postal Service postmark

on the returned report or the electronic

ﬁling date is deemed to be the date the

report is received. When the report due

date for any calendar quarter falls on a

Saturday, Sunday, or a legal holiday, the

report and tax payment shall be post-

marked or ﬁled electronically no later

than the next business day to be

considered a timely report.

Reimbursable employers are only

required to provide wage and demo-

Calculating Excess Wages

As previously mentioned, detailed instructions for completing the Quarterly

Employer’s Wage and Contribution Report have been provided separately or are

available on-line as referenced above. One of the commonly misunderstood sec-

tions of the quarterly report is calculating “excess” wages. “Excess” wages means

the amount paid to each employee after his or her year-to-date earnings have

exceeded the maximum calendar year taxable wage limit as shown on the report.

Employer Services staﬀ can be reached at 802-828-4344, if you need help with this

calculation and/or have any questions.

EXCESS EXAMPLE: (Assumes Taxable Wage Base is $16,000)

EMPLOYEE 1 Taxable Wages/Qtr.

Quarter Total Wages/Qtr. In Excess of $16,000 To Report

1st $7,000 $0 $7,000

2nd $7,000 $0 $7,000

3rd $7,000 $5,000 $2,000

4th $7,000 $7,000 $0

EMPLOYEE 2 Taxable Wages/Qtr.

Quarter Total Wages/Qtr. In Excess of $16,000 To Report

1st $4,000 $0 $4,000

2nd $4,000 $0 $4,000

3rd $4,000 $0 $4,000

4th $4,000 $0 $4,000

Vermont Department of Labor | 16

Health Care Reporting

As part of the quarterly unemployment tax reporting, employers are required to report

and pay a Health Care assessment if they have more than four Full Time Equivalents.

This is calculated each quarter by taking the hours worked by employees that are not

enrolled in the employer’s health care plan and do not have coverage elsewhere or if

the employer does not oﬀer health care. Visit www.labor.vermont.gov for Health Care

Contribution Reporting information.

Making Corrections to Reports

To correct a previously submitted quarterly ﬁling, clearly identify the adjustment on a

copy of the original ﬁling and submit it to Employer Services Unit along with an

explanation of the error. If one or more individuals were left oﬀ the original report, be

sure to include the name, social security number, wages, gender, whether the

individual is paid hourly or by salary, and if paid hourly, the hourly rate of the

employee(s) aﬀected.

Adjustments shall be made to the proper quarter. Do not attempt to correct a worker’s

over-reported wages by including a negative amount on a subsequent quarterly ﬁling,

as these amounts are read by the computer as increases in wages.

Application of Payments Received from Employers

When the Department receives a delinquent payment it will be applied to the oldest

quarter UI tax, UI interest, UI penalty, UI fees, misclassiﬁcation penalties, HC

assessment, HC interest, HC penalties, HC fees, in that order progressing through each

oldest quarter to the most recent, regardless of whether the employer intends the

payment to be for the most recent quarter or not. Delinquent quarter report/money is

deﬁned as those reports/monies received after the quarter due date.

Refunds and Adjustments

Absent a credit balance establishing as a result of an administrative error, reversed

decision, or a credit balance on an inactive or non-subject account, it is the expectation

of the Unemployment Insurance and Wages Division that all adjustments and refunds

will generally be applied to future amounts due. All automated contribution quarterly

reports and rate tapes, along with the Vermont Internet Tax and Wage System

(VITWS), will reﬂect a credit balance where one exists. Therefore, it is important to

note any credit balances for future deduction and use the correct rate when calculating

amounts due, keeping in mind a potential change in your rate beginning with the third

quarter ﬁling each year. When you are ﬁling your Quarterly Wage and Contribution

Reports via our Internet application, any credit balance will be automatically notated

in the payment portion of the application.

If you have any questions on how to calculate the amounts due on the quarterly reports,

please contact the Employer Services staﬀ at 802-828-4344 or your local Field Auditor.

Contact information for all Field Auditors is provided on the back cover of this manual.

17 | Employer Information Manual

Certain non-proﬁ t organizations (exempt from federal income tax under Section 501(c)(3)

of the Internal Revenue Code) and governmental entities may elect the reimbursement pay-

ment option. Here are some things to consider before electing the reimbursement option:

Reimbursement Payment Option

4. Employers who have elected the

reimbursement payment option

will not be relieved of “charges”

(payments) for any reason. Even in

cases in which former employees

are paid beneﬁ ts after serving a

disqualiﬁ cation, reimbursable

employers, unlike taxable employers,

are not relieved of charges. The only

exception is when a claimant is found

to have been overpaid beneﬁ ts. In

that case, the reimbursable account

may be credited but only if overpaid

monies are actually recovered from

the claimant.

Reimbursable accounts receive a

monthly charge statement outlining

the proportional charges made

against the account. It is important to

review this monthly charge statement

to ensure that only individuals who

have worked for you are included

on the statement. The cost of these

beneﬁ ts is billed on a quarterly basis,

and payment is expected within 30

days to avoid interest charges.

1. This option is generally advantageous

for employers with stable employment;

the quarterly tax option is usually

advantageous for employers with high

employee turnover.

Reimbursement payments will vary,

depending on the number of former

employees who are receiving

unemployment beneﬁts. With this

method it may be diﬃcult to estimate

costs, but reimbursable employers are

wise if they budget or at least project

for the potential costs based on past

experience. Claim history is available

from the Department upon request.

3. A reimbursable employer will

reimburse the unemployment fund

on a dollar for dollar basis; their

proportionate share of beneﬁ ts paid to

their former employees. Reimbursable

employers are charged ½ of their

proportional share of extended beneﬁ ts

or the full amount of their proportional

share of extended beneﬁ ts if they are a

governmental employer.

How to Elect the Reimbursable Option

If you are a new employer and your organization is a non-proﬁt with a 501 (c)(3) determination

from the Internal Revenue Service or if your organization is a governmental entity:

Complete Election to Make Payments in Lieu of Contributions (Form C-1B). Such

election shall be made in writing within 30 days from the date we determine you are

an employer for unemployment insurance purposes.

2. Once made, the election will be in eﬀ ect for at least one complete calendar year and

will continue in force until terminated by the employer. The Commissioner may also

terminate the election if the employer is delinquent in making payments.

Vermont Department of Labor | 18

Changing from a Taxable to a Reimbursable Method of

Payment or Vice Versa

Sale of Business Certiﬁ cation

An employer whose organization is a non-proﬁt with a 501 (c)(3) determination from

the Internal Revenue Service or is a governmental entity may elect to change their

method of payment following one complete calendar year of liability, provided:

Written notice must be ﬁled at least 30 days prior to the beginning of

the calendar year for which the change is to be eﬀective.

2. Such change in election shall remain in eﬀ ect for not less than two full

calendar years.

3. Special Note: A Reimbursable employer changing their method of

payment to taxable is liable to make payments as if they were still a

reimbursable employer for each claim that is ﬁ led based on wages paid

while the account was reimbursable. These payments are in addition to

any tax payments that may also be due.

Reporting Changes to Your Business

1. Sale of your business;

2. Discontinuation of your business;

3. A new business name;

4. Change in ownership of your business;

5. Incorporation of the business (registered with the Ver-

mont Secretary of State’s oﬃ ce);

Change in business address or telephone number; or

7. Acquisition of another business.

A Notice of Change (Form C-36) is included in the back of this manual. Additional copies

may be obtained on our website or by calling the Employer Services Unit at 802-828-4344.

An employer selling its business can obtain a certiﬁcation of their unemployment

insurance account status, which can be given to the buyer to provide assurance that there

are no outstanding amounts due on the seller’s account. These certiﬁcations can only be

provided to the seller, not the buyer. Such a certiﬁcate may be requested by the seller

from this Department ten days prior to the date of sale. Sale of Business Certiﬁcations

may be obtained by calling 802-828-4333.

If the buyer of a business requests the experience rating record of the seller, the seller is

statutorily required to provide such record to the buyer.

When any change in your business occurs, notify the Department promptly. A delay

could result in additional costs to you later. Be sure to report such changes as:

19 | Employer Information Manual

Penalties

• The Quarterly Employer’s Wage and Contribution Report (Form C-101) is not

ﬁ led electronically or postmarked, fully complete on or before the due date.

• Individual wage data or Health Care reporting contained on the Employer’s

Wage and Contribution Report is missing, incomplete, illegible, or in an unac-

ceptable format.

•

A Wage Request (Form B-70) is not received in our Central Oﬃce on or before

the due date.

•

A Request for Wage and Separation Information (Forms B-10S or B-8F), when

required, is not received in our Central Oﬃce on or before the due date.

Under 21 V.S.A. § 1314 (f)(1)(b) a penalty shall be imposed for failure to properly

classify a worker. This penalty may be up to $5,000 for each improperly classiﬁed

employee unreported. In addition, the employer may be prohibited from

contracting, directly or indirectly, with the State of any of its subdivisions for up

to three years.

Interest Charges

If Vermont unemployment taxes are not

paid on or before the date they are due,

interest will be charged at the rate of

one and a half percent (1.5%) per month

from the due date to the date payment

is received. If you appeal an assessment

of unemployment taxes, interest will

continue to accrue during the appeal

process. Paying the assessed taxes will

prevent the accrual of interest charges

and will not prejudice your appeal. If

you win your appeal, any interest or

penalties previously paid may be

promptly refunded.

Liens

Delinquent taxes, interest, or penalty

charges may result in a lien being placed

on an employer’s real estate and/or

personal property. Such liens may be

foreclosed in the same way as mortgages

on property.

Assessments

Assessments may also be made for any

past due amounts. An assessment serves

two purposes; to notify the employer of

past due amounts and to serve as a

vehicle the employer may use to ﬁle an

appeal. An assessment may be appealed

by following the instructions in the

Appeals section of this manual. An

assessment may be reduced to judgment

by a court. If a judgment is not

voluntarily paid, the Department may

request the court to issue a “right of

execution”, which directs the sheriﬀ to

collect the amount of the judgment plus

interest from the judgment debtor.

Vermont Department of Labor | 20

Under 21 V.S.A. § 1314 and 1328, a penalty shall be imposed for failure to ﬁle

reports as required. Such penalty will be assessed if:

Financial records for the previous three

calendar years as well as the current year

may be examined. Records which are

located out of State shall be made

available to the tax auditor at the

business’s headquarters in Vermont or, if

there is no Vermont headquarters,

through the employers registered agent in

Vermont. In all but the exceptional case,

the Department will work with an

employer to conduct compliance audits

on a mutually agreeable schedule. If an

employer refuses to participate in a

compliance audit or to produce other

records related to the administration of

the unemployment insurance program, a

subpoena may be issued to force

compliance.

In addition to the Department’s Field

Auditors, the Department operates a

federal mandated Beneﬁts Accuracy

Measurement (BAM) unit where Quality

Control Specialists conduct random

audits of unemployment benefits claims,

both payments made and denied claims,

to help ensure the integrity of the

unemployment insurance program.

When this review is conducted, it may

require that certain records be produced

and federally required forms be ﬁlled

out and returned. Cooperating with the

BAM unit helps ensure a more accurate,

eﬀective, and eﬃcient Unemployment

Insurance Program. Your assistance is

greatly appreciated.

The Department Field Auditors perform a

number of functions related to the unem-

ployment insurance program. These

functions include examining employment

records for the purpose of establishing an

employer’s unemployment and health

care contribution liability, checking on

unreported wages that are holding up

payment of unemployment beneﬁts,

conducting compliance audits, collecting

unreturned UI forms, and investigating

allegations of fraudulent or inappropriate

unemployment benefit claims. The com-

pliance audits verify the status of

individuals as employees and the desig-

nation of payments as wages to insure

proper payment of unemployment taxes.

Each Field Auditor carries a picture ID

card for identiﬁcation. Field Auditors

can be reached at many of the Career

Resource Centers listed on the inside

back cover or by contacting the

Department’s Central Oﬃce at (802)

828-4344.

If a compliance audit is necessary, the

Field Auditor will contact the owner or

employer’s representative to schedule an

appointment to perform the audit. Before

examining the records, the auditor will

interview the owner or representative of

the business. The interview will acquaint

the auditor with the nature of the business

and its services. This pre-audit interview

also helps the Field Auditor to identify the

ﬁ nancial records which will be examined.

Contacts by a Field Auditor or Department Representative

21 | Employer Information Manual

In 1996, the Vermont General Assembly

passed a law (21 V.S.A. § 1031-1043) to

regulate the employee leasing industry.

This law, which originated through an

industry request for regulation of leasing

companies, requires the employee

leasing companies, doing business in

Vermont to be licensed by the Vermont

Department of Labor.

Regulation of the employee leasing

industry was enacted in part as a response

to situations where an employee leasing

company went bankrupt after having

collected from its clients money that was

to be used to pay wages, beneﬁts, worker

compensation premiums, and

unemployment insurance contributions,

but without ﬁrst making those payments

to the appropriate agencies. In those

situations, the client companies bore the

responsibility of paying those wages,

premiums, and taxes twice. The ﬁnancial

responsibility and bonding provisions of

the employee leasing law are intended to

reduce or eliminate the exposure of the

client companies should their leasing

company suddenly go out of business. By

helping ensure that only stable employee

leasing companies do business in the

State, Vermont’s employee leasing law

provides protections to workers, client

companies, and the leasing industry itself.

It also helps to ensure that the cost of

unemployment insurance and workers’

compensation is borne by the client

company, and not spread amongst all

other employers.

EMPLOYEE LEASING

An employee leasing company is a business that by agreement and for a fee, places employees of a

client company on the leasing company’s payroll. In turn, the leasing company “leases” these

employees back to their original employer, usually for an unlimited period of time.

Employee leasing companies provide a

number of valuable services to their

clients. Typically, an employee leasing

company will provide payroll services and

assist companies in managing their human

resources by providing employee manuals

and other services, which are sometimes

diﬃcult for smaller companies to provide

on their own. Better management of

workplace safety can help control the cost

of worker compensation. Improved hiring

practices and experienced representation

in unemployment insurance beneﬁt and

tax matters can help keep the cost of

unemployment compensation down.

Because leasing companies represent a

number of employers, and therefore a

larger pool of workers, the cost of benefits

can sometimes be lowered. In some cases,

client employers which could not aﬀord to

provide certain beneﬁts, such as health

insurance, ﬁnd it aﬀordable to do so when

taking advantage of the buying power of

an employee leasing company.

In order to maximize the advantages and

minimize the risks of employee leasing,

Vermont employers are encouraged

to only utilize those services provided

by a company licensed to do business

in Vermont. A list of employee leasing

companies licensed to do business in

Vermont is maintained by the Vermont

Department of Labor. You can obtain

a copy of this list on our website or by

contacting the Employer Services Unit at

802-828-4344.

Vermont Department of Labor | 22

Requirements for Licensure of Employee Leasing Firms

This section highlights the requirements for an employee leasing company to become

licensed in Vermont. A complete copy of the statute, rules, and forms pertaining to

employee leasing can be obtained on our website or by writing to our Central Oﬃce,

Attn: Employee Leasing.

The employee leasing law requires leasing companies to provide the Department with

the following:

Registration with the Vermont Department of Labor;

A list of all controlling persons of the applicant, their biographical information, and

an aﬃdavit from each attesting to his or her good moral character and

management competence;

Documentation that the applicant maintains a place of business in this State or has

designated an agent of service, domiciled in the State, if there are to be no more than

50 leased employees working in the State and the applicant is licensed, if required,

in the applicant’s state of domicile;

Certification that the applicant does not conduct a temporary help business

through the same entity as the employee leasing business;

An agreement to maintain Vermont records for each client company and ﬁle

reports as required by this Vermont rule and Vermont law for each of its client

companies;

An agreement to pay unemployment insurance contributions and workers’

compensation premiums based on the experience rating of each client company,

provided that, for workers’ compensation premiums, the client company has

suﬃcient workers’ compensation premium volume to be experience rated, otherwise

workers’ compensation premiums shall be at a rate approved for an employer that

cannot be experience rated, and, provided that, for unemployment insurance

contributions, the client company has suﬃcient experience to be experience rated,

otherwise contributions shall be paid at the applicable new employer rate;

An acknowledgment of the applicant’s joint and several liability with each client

company for protections required by or damages due under laws designed to

protect the health, safety, or welfare of an individual lease to a client company;

Evidence of ﬁnancial responsibility in accordance with this rule; and

An agreement that the Commissioner of Labor may liquidate any securities or

bond provided pursuant to this rule upon default by the applicant in payment of

wages, beneﬁts, workers’ compensation premiums, or unemployment insurance

contributions in order to use the funds to pay the same.

23 | Employer Information Manual

Unemployment Insurance Requirements

for Employee Leasing

For unemployment insurance purposes, employee leasing companies are required to:

Notify the Vermont Department of Labor each time it adds or terminates

a client company;

Complete a Power of Attorney for each client company, authorizing it

to act on behalf of the client for unemployment insurance purposes;

File Quarterly Wage and Contribution Reports (Form C-101) for each

client separately, using each client’s VDOL employer account number

and the client’s assigned rate;

Provide a list of each client company in Vermont on or before December

31st of each year; and

Maintain accurate records for each client company and make those

records available to this Department for inspection as needed.

Vermont Department of Labor | 24

State unemployment taxes are paid to

this Department, deposited into a trust

fund, and may only be used for the

payment of beneﬁts. The state tax is

payable on the taxable wage base paid to

each worker in a calendar year.

Vermont’s taxable wage base schedule

can be found on our website at

www.labor.vermont.gov.

Federal unemployment taxes are paid to

the Internal Revenue Service and are used

to pay for the cost of administration of the

state programs, the federal cost of

extended beneﬁts, and to make loans

when state unemployment trust funds

experience shortfalls and have to borrow

to pay beneﬁts. The federal tax is payable

on the ﬁrst $7,000 of wages paid to each

employee during each calendar year and

the FUTA tax is currently 6.0% on the tax-

able wage base paid to each worker in a

UNEMPLOYMENT TAXES AND

EXPERIENCE RATING

State and Federal Unemployment Taxes

Employers pay two types of unemployment taxes one to the State and the other to the

federal government.

calendar year. When you pay your state

unemployment taxes on time, you receive

a tax credit of 5.4% on your FUTA tax.

That means the federal unemployment

tax rate will be .6% instead of 6.0%. The

federal tax credit is applicable regardless

of the state tax rate, provided state taxes

are paid on time.

On an annual basis, the Department and

IRS conduct a cross match to ensure that

employers are paying both taxes.

Payment of state unemployment taxes in

a timely manner reduces the federal

unemployment tax rate from 6.0%

to .6%, so it is important to pay your

state unemployment taxes on time.

NOTE: If a state is borrowing from the

federal government or has not paid back

in full such loan amounts, employers may

lose all or part of their federal tax credit.

| Employer Information Manual

Qualifying for an Experience

Rate

The law requires at least one complete

calendar year of beneﬁ t liability before an

employer receives an experience rating.

Beneﬁ t liability means that unemploy-

ment insurance payments could have

been charged to the employer’s experi-

ence rating throughout a complete calen-

dar year. It is not necessary for unemploy-

ment insurance payments to have actually

been charged. Because tax rates are re-

calculated only on an annual basis, most

employers pay unemployment insurance

taxes at the new employer rate for at least

two years before ge ing an experience

rating. Without exception, the tax rate of

an employer that has had three calendar

years of beneﬁ t liability will be based on

experience during the last three years.

After three years, the rate is based on a

rolling three year experience.

Experience Rating

All covered employers paid a state unem-

ployment tax rate of 2.7% until 1941. An

“experience rating plan” then went into

eﬀect that reduced rates for employers

with favorable unemployment insurance

records.

Under this plan, the number of unem-

ployment beneﬁ t payments aﬀ ects the tax

rate. The more beneﬁ t payments that are

made to former employees, the higher the

tax rate (up to a statutory maximum rate).

Because rates are related to experience

with unemployment, experience rating

should act as an incentive both to take

steps to help stabilize employment and

supply information needed to prevent

beneﬁ t payments to ineligible persons.

The more beneﬁ t payments that

are made to former employees, the

higher the tax rate (up to a statutory

maximum rate)

New Employer Rates

Employers pay unemployment taxes at a New Employer rate until such time as they

earn a rate based on their “experience” with the unemployment insurance program.

Beginning July 1, 2004, the new employer rate for most employers is one percent (1%).

However, if you are an out of state (foreign) corporation classiﬁed under the North

American Industry Classiﬁcation System (NAICS) as 236 (Construction Building), 237

(Heavy/Civil Engineering), or 238 (Specialty Trades Foreign Construction Corporation),

you will be assigned a New Employer rate based on the industry average of all other

similarly classiﬁed businesses during the past calendar year.

Vermont Department of Labor | 26

Beneﬁ t Ratio

To compute a beneﬁt ratio, the Department divides the total amount of beneﬁts

charged to your record during the last calendar year (or last two or three

calendar years if you have been liable for beneﬁts that long) by the total taxable

wages you reported for that same period. This ratio is used to set your tax rate.

EXAMPLE:

Beneﬁ ts Charged Taxable Wages

Year To Your Record Paid By You

2003 $ 2,448 $ 120,954

2004 2,732 98,520

2005 1,675 105,617

_______ _______

$ 6,855 $ 325,091

6,855 divided by 325,091 = .02108 (beneﬁ t ratio)

Determining Your Tax Rate

The lowest possible beneﬁ t ratio is

.00000 - no beneﬁ ts were charged to that

employer’s account over the last three

years. Employers with a zero beneﬁ t

ratio are assigned the lowest tax rate in

eﬀ ect for that year (rate class 0). Rate

class “0” is assigned the lowest rate in

each schedule. See further information

provided in the “Rate Schedule” section.

All other employers are then placed

in the twenty tax rate classes that are

higher than zero. No employer is as-

signed to a higher class than any other

employer with the same beneﬁ t ratio.

Rate Class 1 is made up of employers

with the lowest beneﬁ t ratios above zero

and Rate Class 20 is made up of those

with the highest beneﬁ t ratios.

Your rate depends upon two factors:

(1) How your beneﬁ t ratio compares

with other employers’ beneﬁt

ratios; and,

(2) Which rate schedule is in eﬀ ect.

Rate Schedule

The appropriate schedule is determined by

a special formula in the Vermont Un-

employment Compensation Law. 21 V.S.A.

§ 1326 provides ﬁve diﬀerent rate

schedules, each with twenty-one tax rates.

The tax schedules are designed so that Rate

Schedule 3 provides an “equilibrium” of

funding across the business cycle. Schedules

1 and 2 raise less money than the

equilibrium and Schedules 3 and 4 raise

more than the equilibrium. The diﬀerence

in the total amount raised under each

schedule is approximately $10 million. The

unemployment trust fund is “forward

funded”, which means that the tax

schedules are designed to raise funding

during good economic times to ensure that

there is adequate funding during

recessions. The U. S. Department of Labor

suggests that a state trust fund be

maintained at a suﬃcient level such that if

no additional taxes were paid, the trust

fund could continue to pay beneﬁts for at

least one year. Vermont’s rate schedules are

designed to maintain at least 1.5 years of

funding if no additional taxes are paid.

7 | Employer Information Manual

THE TAX SCHEDULES AND RATES ARE AS FOLLOWS:

Tax Rate Class Tax Rate Schedules

1 2 3 4 5

0 0.4 0.6 0.8 1.1 1.3

1 0.5 0.7 0.9 1.2 1.5

2 0.6 0.8 1.1 1.4 1.8

3 0.7 1.0 1.4 1.7 2.1

4 0.8 1.2 1.7 2.0 2.4

5 0.9 1.4 2.0 2.3 2.7

6 1.1 1.7 2.3 2.6 3.0

7 1.4 2.0 2.6 2.9 3.3

8 1.7 2.3 2.9 3.2 3.6

9 2.0 2.6 3.2 3.5 4.0

10 2.3 2.9 3.5 3.8 4.4

11 2.6 3.2 3.8 4.1 4.8

12 2.9 3.5 4.1 4.5 5.2

13 3.2 3.8 4.4 4.9 5.6

14 3.5 4.1 4.7 5.3 6.0

15 3.8 4.4 5.0 5.7 6.4

16 4.1 4.7 5.3 6.1 6.8

17 4.4 5.0 5.6 6.5 7.2

18 4.7 5.3 5.9 6.9 7.6

19 5.0 5.6 6.2 7.3 8.0

20 5.4 5.9 6.5 7.7 8.4

Vermont Department of Labor | 28

Successor Employer

21 V.S.A. § states in part “Any individual

or employing unit who in any manner

succeeds to or acquires the organization,

trade

, or business or substantially all of the

assets of any employer who has been

operating the business within two weeks

prior to the acquisition, except any assets

retained by the employer incident to the

liquidation of the employer’s obligations,

and who thereafter continues the acquired

business shall be considered to be a

successor to the predecessor from whom

the business was acquired and, if not

already an employer before the acquisition,

shall become an employer on the date of

the acquisition. The Commissioner shall

transfer the experience-rating record of the

predecessor employer to the

successor employer. If the successor was

not an employer before the date of

acquisition, the successor’s rate of

contribution for the remainder of the rate

year shall be the rate applicable to the

predecessor employers with respect to the

period immediately preceding the date of

acquisition if there was only one

predecessor or there were only

predecessors with identical rates. If the

successor’s rates were not identical, the

Commissioner shall determine a rate based

on the combined experience of all the

predecessor employers. If the successor

was an employer before the date of

acquisition, the contribution rate which

was assigned to the successor for the rate

year in which the acquisition occurred will

remain assigned to the successor

29 | Employer Information Manual

for the remainder of the rate year, after

which the experience-rating record of the

predecessor shall be combined with the

experience rating of the successor to form

the single employer experience-rating

record of the successor.”

Transferring the experience record means

that the tax rate of the company which

was purchased under these conditions

becomes the tax rate of the new owner. It

also means that both the beneﬁt charges

and taxable wages used to compute a rate

are transferred to the new employer.

There can be beneﬁt charges based on

claims ﬁled against the original owner,

either before the acquisition or as a result

of the change in ownership that are not

yet reﬂected in the rate. The statute also

requires the Department to combine the

rates when there was more than one

predecessor account being acquired and

in the case where the employer was

already an employer subject to the

unemployment statute prior to the

acquisition, the employer will keep its

rate for the remainder of the rate year,

after which the experience of all existing

and acquired accounts will be merged to

determine a new experience rate as of the

beginning of the next rate year, which is

July 1st of each calendar year.

21 V.S.A. § Section 1325(b) (2) continues

to state “Notwithstanding the

provisions of subdivision (1) of this

subsection, an individual or employing

unit who in any manner succeeds to or

acquires the organization, trade, or

business or substantially all of the assets

of any employing unit who was an

employer before the date of acquisition

and whose currently assigned

contribution rate is higher than that

currently assigned to the acquiring

individual or employing unit shall not

be treated as a successor.” That means

that an already existing employer that

has a lower experience rate than the

business it acquires gets to keep the

lower rate. The purpose of this section

of the law is to not penalize an employer

with a good experience record simply

because of the acquisition of a business

that had a poor experience record.

Vermont Department of Labor | 30

Partial Successor

“An entity that is not already an

employer for unemployment purposes

which acquires only a portion of an

existing business which was liable to

pay unemployment insurance tax in this

state and then continues to operate that

portion of the business is considered

to be a ‘partial successor’”. A partial

successor is not eligible for a rate transfer.

In the case of a partial successor, the

new employer rate is assigned.

What is “SUTA Dumping”?

SUTA dumping is an illegal practice

whereby an existing employer attempts

to manipulate its experience rate so as to

reduce the cost of unemployment

insurance. In 2004, the United States

Congress passed a law which made

unemployment insurance rate

manipulation illegal and which also

required all states to pass laws designed

to thwart these types of practices at the

state level. Vermont passed such

legislation that became eﬀective July 1,

2005, 21 V.S.A. § 21 1325(d).

SUTA dumping occurs in two types of

situations. In one, an employer with

a high unemployment tax rate creates

one or more new legal entities and then

transfers the employees of the existing

high cost account to the new, lower cost

account. In another scenario, an employer

buys a business with a low experience rate

ostensibly to continue that same type of

business, is deemed to be a full successor

with a lower rate, and then changes the

nature of the acquired business so as to

report the employees otherwise reportable

under the higher cost account. Since these

practices are illegal, employers who

attempt to do this may ﬁnd themselves

subject to both civil and criminal

penalties. The Department has systems in

place to detect these types of activities and

will strongly enforce the provisions of the

State SUTA dumping law. SUTA

dumping is unfair to the employer

community in general because when

successful, the cost of unemployment

benefit is shifted from the employer with

a lot of experience with claims, and thus a

higher tax rate, to all other employers who

participate in and pay into the

unemployment insurance trust fund. In

some cases SUTA dumping can create an

uneven playing ﬁeld where honest

employers are disadvantaged by

employers who engage in SUTA

dumping, thus lowering their cost of

doing business and putting them at a

competitive advantage when bidding for

certain types of business.

31 | Employer Information Manual

The following sections describe the claim process, what the employer is required to do

in order to facilitate the ﬁ ling and processing of unemployment claims and how the

amount of beneﬁ ts is determined. It also explains how the beneﬁ ts that are paid are

charged to employer accounts.

If beneﬁts are to be paid only to eligible persons your cooperation is important.

The Department has to establish certain facts on every claim. Prompt and accurate

information from employers is essential to establish the eligibility of claimants.

Overpayment of beneﬁts and the charging of overpaid beneﬁts to your account

can result from inaccurate, incomplete, or untimely submission of information.

Providing Information to Your Employees

Vermont law requires that every business display the Department’s Unemployment

Insurance poster (Form A-24) in the workplace, which is easily accessible to all

employees. This poster outlines how individuals go about ﬁling a claim for beneﬁts.

The poster is mailed to you when you become liable for unemployment taxes. You can

obtain additional copies of the poster on our website or by contacting the Employer

Services Unit at 802-828-4344.

How Individuals File a Claim for Beneﬁ ts

Since late 1999, unemployed individuals ﬁle a claim for unemployment insurance

beneﬁts by telephone in Vermont. These calls are received in a centralized

Unemployment Claim Center in Montpelier. The Claim Center uses a state of the art

system that ﬁrst requires callers to interact with a voice response system. Following

the taking of preliminary information by computer, the claimant must speak to a

customer service representative, who completes the claim ﬁling process, outlines the

basic requirements to remain eligible, and answers any questions the claimant may

have. The Department also mails an information packet to the claimant following the

claim ﬁling process, which outlines the claimant’s responsibilities and rights.

UNEMPLOYMENT BENEFITS

Unemployment beneﬁts are paid to workers who are unemployed, either totally or partially,

through no fault of their own, who are able to work and available for suitable work, and, if

required to do so, are actively seeking work. Unemployment beneﬁts are an entitlement,

provided the individual ﬁling the claim meets all eligibility requirements. Individuals who may

have been “classiﬁed” as a subcontractor are often still entitled to unemployment coverage and

can ﬁle claims and receive beneﬁts if found eligible.

Vermont Department of Labor | 32

Those claimants who are not job attached

are required to make at least three job

contacts each week. The Department

performs periodic eligibility reviews with

claimants who are not job attached to

help ensure that an adequate work

search is being performed. Individuals

who fail to make the required number of

job contacts may be disqualiﬁed from

receiving beneﬁts, unless and until they

meet the job search requirements.

If a worker’s job ended for any reason

other than lack of work (e.g. a quit or

discharge), a thorough investigation is

conducted by a Department claims

adjudicator. After the relevant facts are

gathered and evaluated, a written

determination about the claimant’s

eligibility is mailed to both the claimant

and the separating employer. Individuals

who are discharged where “misconduct”

is found are generally disqualiﬁed for ten

weeks, after which they can receive

beneﬁts if still unemployed, provided they

then meet all eligibility requirements. The

claimant who voluntarily quits work for

reasons that are not attributable to the

employer is disqualiﬁed from receiving

unemployment beneﬁts until they return

to work, earn at least six times what their

weekly beneﬁt amount would have been,

and then have another qualifying

separation from work. There is more

information about these issues in the

Appeals section of this manual.

Certain payments to the claimant, includ-

ing vacation pay, wages in lieu of notice,

back pay awards, temporary partial or

temporary total workers’ compensation

payments, severance pay, and pensions

that are 100% employer ﬁ nanced are

considered “disqualifying remuneration”,

which means that those payments may

be deducted from the week(s) of beneﬁ t

As part of the claims taking process, the

customer service representatives evaluate

whether the claimant is “job attached”,

which means the claimant has a return to

work date with a speciﬁc employer within

ten weeks. Individuals who are job attached

shall remain able to work and available for

work while ﬁling for beneﬁts and cannot

refuse an oﬀer of work, but they are not

necessarily required to make an active job

search. The reason not every claimant has to

look for work is two-fold: ﬁrst, when an

employer lays someone oﬀ with the intent

to rehire the individual when business picks

up within a reasonable time, that employer

would like to be able to recall that worker

and not go to the expense of hiring and

training a new employee; second, claimants

who know they can go back to work with

the employer that just laid them oﬀ create a

burden on other employers when forced to

make job contacts solely to satisfy the

requirements of the job search program.

Regardless, if an employer has work

available that the individual claimant is

capable of doing, if the claimant refuses an

oﬀer of such work they put their continued

eligibility for beneﬁts at risk. When an

employer knows that someone is receiving

unemployment beneﬁts and makes an oﬀer

of “suitable work” that the claimant then

refuses to accept, the employer should

contact the Department by going to

www.labor. vermont.gov and select

“Employer Online Services” or call toll free

at 877-214-3331 to report it so we can follow

up on the refusal of work. While not every

job oﬀer is considered “suitable work”

under statute, employers are encouraged to

raise these issues with the Department to

help ensure that only those individuals who

are truly unemployed through no fault of

their own will be paid beneﬁts. (See more

discussion about “suitable work” later in

this manual).

33 | Employer Information Manual

payments made to claimants. It is important to report these payments on the Notice of

Separation which is sent to all base period employers following the ﬁling of a claim for

beneﬁts. A more detailed explanation of what information the Department requests

and the reason for providing that information is found later in this manual.

How are Beneﬁ ts Charged?

Beneﬁts are paid from the Unemployment Compensation Trust Fund and are charged

to the experience rating record of the base period employers. Employers are charged

for a percentage of the beneﬁts paid to eligible claimants in the same proportion as the

wages used to qualify the individual when they ﬁrst establish a claim. For example, if

a claimant has two base period employers, both of whom paid the claimant the same

amount in wages, then both employer accounts would be charged 50% of the beneﬁts

paid to the claimant. In some cases, an individual employer is not chargeable, in

which case that employer’s proportional share of the beneﬁts paid are charged to the

trust fund, which means that all employers who contribute to the trust fund share in

the expense of the non-charged beneﬁts. Beneﬁt charges are set at the time a claimant

ﬁles an Initial Claim and the employer remains chargeable for the entire Beneﬁt Year.

A taxable employer may be relieved of charges if the reason

for separation was for any of the following:

1. Discharge for misconduct connected with the work.

2. Quit without good cause a ributable to the employer.

3. Termination under a retirement plan with a mandatory retirement age.

4. Leaving due to a health condition.

5. Leaving employment which is considered “unsuitable”.

In addition, beneﬁ ts will not be charged to the experience rating

of a base period employer if:

1. An individual who works part-time for a base period employer

continues to work his or her part-time hours with that employer.

The individual was hired when an employee took family leave

and the individual’s employment ended because the employee

on family leave returned.

Also, wages for a separating employer will not be used to calculate a weekly beneﬁ t

amount if gross misconduct is determined to be the result of the separation from

that employer.

A monthly Statement of Beneﬁ t Charges to Your Unemployment Beneﬁ t Account

(Form B-84W) is mailed to employers to inform them about charges to their experi-

ence rating records. This is not a Billing Statement. If there are individuals who you

feel should not be listed for any reason, contact the toll-free Employer Assistance

line at 1-877-214-3331 and provide all necessary information.

Vermont Department of Labor | 34

Minimize Charges To Your Account

1. File and report electronically by going to www.labor.vermont.gov and

clicking on “Employer Online Services”.

2. Keep accurate records of employment agreements, dates and details of work

refusals, employee performance, dates and details of warnings, and other

disciplinary measures.

Provide detailed separation information and supporting documents such

as attendance records, warnings, policies, and witness statements to the

Department, when requested, by the due date speciﬁed.

4. Return the Notice of Potential Charges (Form B-10S) with speciﬁ c information

about the reason for the claimant’s separation from your employ if it was for

other than a lack of work or if there is an error in reported wages.

5. File an appeal if you believe a determination or decision is wrong.

6. Notify us promptly if you have information that a claimant is not available for

work, not able to work, has refused work, or is employed.

7. Complete audit forms promptly when they are sent to you.

8. Submit quarterly wage reports timely to avoid penalties.

9. Pay taxes promptly to obtain maximum Federal Unemployment Tax credit.

10. Report all changes to your business promptly.

11.

Encourage your workers to seek and accept part-time or temporary work

during seasonal layoﬀs, since all wages earned above their disregarded

earning amount in a given week reduces their unemployment compensation

beneﬁt amount on a dollar-for-dollar basis.

12.

Report newly hired employees to the Department within ten days of the

ﬁrst day work is performed.

13.

Retain information (date of contact and name of person) when you are

contacted by a person seeking employment. This is a critical part of our eﬀorts

to verify unemployment claimant’s work search eﬀorts.

Reducing the Cost of Unemployment Insurance

Stabilize Employment

1. Screen prospective employees carefully to select the “right” employee for the job.

2. Hire versatile employees who can be shifted to another job if necessary.

3. Transfer employees to other job sites when feasible.

4. Use regular employees for repairs and maintenance during slack periods.

35 | Employer Information Manual

How Beneﬁ t Eligibility is Determined

Determining a claimant’s eligibility for beneﬁ ts is a multi-step process.

First, the claimant must have earned a suﬃ cient amount of wages during his or her

“base period” to be considered “monetarily” eligible.

A “base period” is four successive calendar quarters. Usually, the claimant’s base

period is the ﬁ rst four of the last ﬁ ve completed calendar quarters immediately

preceding the date the claimant calls to ﬁ le his or her claim for beneﬁ ts. This is also

referred to as “monetary method one”.

To be monetarily eligible for beneﬁ ts under “monetary method one”, the claimant

must have been paid the minimum amount required by law of “covered wages”

in the highest quarter of their base period and the remaining quarters of the base

period must equal or exceed 40% of the highest quarter.

Vermont has two other ways in which

claimants may be determined “monetarily

eligible”, which are sometimes referred to

as “alternate base periods”.

If a claimant is not monetarily eligible

under “monetary method one”, the

Department will use the last four

completed calendar quarters preceding

the eﬀective date of the claim as the base

period. To be monetarily eligible under

“monetary method two”, the claimant

must have been paid the minimum

amount required by law of “covered

wages” in the highest quarter of their

base period and then also earn at least

40% of that amount in the remaining

three calendar quarters of the base period.

If a claimant is not monetarily eligible

under “monetary method two”, the De-

partment will use the last three com-

pleted calendar quarters and wages

paid in the current quarter up to the

eﬀective date of the claim as the base

period. To be monetarily eligible under

“monetary method three”, the claimant

must have been paid at preceding the

eﬀective date of the claim as the base

period. To be monetarily eligible under

“monetary method two” the claimant

must have been paid the minimum amount

required by law of “covered wages” in the

highest quarter of their base period and

then also earn at least 40% of that amount

in the remaining three quarters of the base

period.

Since the wage reports for the last

completed and current calendar quarters

(used under monetary methods two and

three) will not yet have been received,

a special request for these quarters’

wages will be sent to all employers who

furnished employment to the individual

during these quarters.

Finally, there is a fourth method that is

only applicable to individuals who have

been receiving Workers Compensation

beneﬁts because of temporary total

disability. A former Workers’ Compensa-

tion recipient will be entitled to receive

unemployment insurance beneﬁts which

would have been available at the time of

separation from employment, as long as

the claimant, at the time of ﬁling, is not

monetarily eligible under monetary

methods 1, 2, or 3, the claim is ﬁled within

six months after the termination of the

period of temporary total disability, and

the claimant is otherwise eligible for

unemployment insurance benefits.

Vermont Department of Labor | 36

If a claimant is monetarily eligible for beneﬁ ts, the weekly beneﬁ t amount is

computed by dividing the total wages paid in the two highest quarters in the

claimant’s base period by 45. The amount of weekly beneﬁ ts is capped each

year. As with the minimum amount necessary in one quarter to qualify, the

maximum weekly beneﬁ t amount is also subject to change each year in July.

• The minimum amount can be found on our website at www.labor.vermont.gov

Waiting Period

All new claims are subject to an unpaid waiting period week. Claimants will not receive

an unemployment check while serving a waiting period. Please note a waiting period

will not be credited for any week that has been denied beneﬁ ts. A waiting period must

be served once every beneﬁ t year.

Other Eligibility Requirements

A claimant who is monetarily eligible for beneﬁts must still meet certain eligibility

requirements before being paid beneﬁts. Generally, the claimant must be unemployed

through no fault of their own. An individual who is laid oﬀ due to lack of work will be

determined eligible for beneﬁts. An individual who is discharged will be awarded

beneﬁts unless the employer can demonstrate that the reason for discharge was work-

place misconduct, as that term is deﬁned in statute and case law. Behavior or conduct that

may justify a discharge from employment will not necessarily constitute “misconduct”

suﬃcient to disqualify the claimant for beneﬁts. A single incident of tardiness,

absenteeism, poor performance, or insubordination will not necessarily disqualify a

claimant for beneﬁts unless the employer can establish that the incident is part of a

continuing pattern or practice of the claimant against which the claimant had previously

been warned. Therefore, it is critical for you to keep good notes and documentation.

In limited cases, an individual will be determined eligible if he or she quits for reasons

attributable to the employer. For example, “attributable to the employer” generally

means the employer did something it cannot do, like unilaterally changing the terms

and conditions of employment, or didn’t do something it must do, like maintaining a

workplace that is free of harassment and discrimination. The claimant must also be

both able to work and available to work to be determined eligible.

Employee Dismissals and Suitable Work

The following information relates to two of the more commonly misunderstood

unemployment insurance issues, dismissal from employment, and refusal of suitable

work.

Employee Dismissals - Well over half of all employer protests stem from discharge

issues. The results of the protest do not always satisfy the employer.

Based upon extensive discussions with employers, several recurring points of

confusion are evident. This review will explore the unemployment insurance issues

surrounding the dismissal of an employee. The legal right of an employer to ﬁre a

worker is a separate issue and is not considered here.

| Employer Information Manual

First, many employers discharge

individuals for misconduct, but few know

the legal deﬁnition of misconduct for

unemployment insurance purposes. Case

law deﬁnes misconduct as a substantial

or intentional disregard of the employer’s

interests. The deliberate nature of the act

is a crucial component of the deﬁnition.

In contrast, case law speciﬁ cally exempts

from the misconduct deﬁ nition “ineﬃ -

ciency, unsatisfactory conduct, failure in

performance as the result of inability or

incapacity, inadvertencies or ordinary

negligence in isolated instances, or good

faith errors in judgment or discretion”.

In addition, a single instance does not

con-stitute misconduct except in extreme

cases. (Arson, for example, is gross

misconduct based upon a single incident.)

At least one prior warning for the speciﬁc

behavior that led to a discharge is

generally required to sustain a ﬁnding of

misconduct.

A warning for a separate instance does

not qualify. If an employee receives a

warning for lateness, but then is

discharged for neglecting to follow safety

standards, misconduct would probably

not be found. The initial warning for

lateness is not the same as the actual

reason for discharge (safety violations).

The law places the burden of proof upon

the employer in misconduct issues. The

employer must usually show two things:

deliberate disregard of the employer’s

interest and at least one prior warning

for misconduct.

Vermont Department of Labor | 38

immediate investigation. “Going through

the motions” is not suﬃcient. A sincere

desire to work must be shown through a

realistic work search eﬀort. A willingness to

work implies being able to work. If one is

physically unable to work due to illness or

injury, he or she may be barred from

receiving unemployment insurance beneﬁts

for refusing otherwise suitable work for as

long as they are unable to work.

If a willingness to work is evident, then

the Department explores the appropriate-

ness of the job. For example, if a person

earned $20.00 an hour as a manager at his

or her most recent position, a job at $10.00

an hour as a salesperson may not be

considered appropriate. If the new job

required a commute of 50 miles, but the

person had always worked within 10

miles from home, the location of the new

job might be suﬃcient reason to turn

down the job. If a person did not have the

necessary skills or background for a job,

he or she could refuse it and generally

remain eligible for unemployment

insurance benefits.

If a job oﬀer is in the person’s normal

occupation, working conditions,

and pay

become key issues. A carpenter would

have a fairly strong case if he or she

refused a night carpentry job. Carpenters

do not normally work at night, and that

unusual working condition could be

suﬃcient reason to refuse a job. Pay that

is either considerably below the person’s

most recent salary or less than the

prevailing wage for the occupation may

also constitute a valid reason to refuse a

job oﬀer.

We have been assuming a valid job oﬀer

of work has been made to the person. To

be a valid oﬀer of work, the job must

begin within two weeks and the worker

must be told pay, hours, location of the

job, and other relevant information.

To meet this burden of proof, complete

and accurate record keeping is essential.

Ideally, warnings should be in writing,

dated, and signed by both the employer

and employee. In case of a dispute over

the issuance of a warning, the employee’s

signature on the warning constitutes

clear evidence that he or she was indeed

given a warning.

Warnings should clearly list the

behaviors that are not acceptable. Citing

speciﬁc recommendations on how to

improve and speciﬁc standards to be

achieved. Incomplete or vague records

seldom contain these essential items and

will not generally meet the burden of

proof requirement.

Finally, this proof must be provided

timely to the Department. Failure to

substantiate an allegation of misconduct

with evidence or credible testimony

may result in a determination in favor

of the claimant. An employer must

participate in the initial fact ﬁnding

process, as well as any appeal, or

evidence will be lacking and the

unemployment insurance claim will be

allowed.

Suitable Work - Statute requires individu-

als who are unemployment claimants to

accept an oﬀ er of “suitable work”. Not

all jobs are considered suitable for an

individual, however.

“Suitable work” involves many factors,

such as pay, working conditions, health,

work skills, and commuting distance.

Two major questions comprise our

scenario of suitable work: Was the

person actually willing to work and was

the job appropriate for the person?

One must be willing to work to receive

unemployment insurance benefits. Any

indication to the contrary triggers an

39 | Employer Information Manual

A simply query of “Would you like to

work for me?” does not meet the Depart-

ment’s deﬁnition of a valid oﬀer of work.

A person who is working has the right to

remain with his or her current employer.

Refusing to work for someone else is

perfectly acceptable. This right to

continue work for one’s current employer

often leads to bitter protests from a

former employer. The reason for the

strenuous protests can be understood

with this example.

A worker, Joe, is laid oﬀ by Superior

Products Company. Joe receives un-

employment insurance benefits for a

month, and then takes a job with Quality

Wares Company. When Superior Pro-ducts

asks Joe to return, he refuses. They then

hire someone else. A few months later,

Quality Wares lays oﬀ Joe. He resumes

collecting unemployment insurance

benefits, and Superior Products is still

charged for his payments. Superior’s

owner is not happy, and hastens to tell

the Department that Joe refused an

oﬀer of work.

The Department investigates, discovers

that Joe was working for Quality Wares

at the time of the job oﬀer, and informs

Superior Products that Joe has not vio-

lated any provision of the unemployment

insurance laws and will continue to

receive payments. The worker has done

nothing to cause disqualiﬁcation of his

unemployment benefits, and has abided

by all the regulations. Superior Products

will be charged for his unemployment

benefits for the rest of the beneﬁt year. (A

“beneﬁt year” begins when a worker ﬁles

for unemployment insurance and ends

365 days later. Within that time period,

charges for unemployment benefits are

not changed. They will be assessed

against the same company or companies

for the entire 12 months.)

Vermont Department of Labor | 40

The Department will only investigate a

“suitable work” issue if the person is

currently receiving unemployment

benefits or was receiving unemployment

benefits at the time of the refusal of

work. The Department has no legal

authority to investigate a person who

is not now and has not been receiving

unemployment benefits.

For more information on this or other

aspects of “suitable work” contact the

Employer Assistance Line toll-free at

1-877-214-3331.

Disqualifying Remuneration

Receipt of certain payments upon

separation from employment, including

wages in lieu of notice, vacation pay, a

back pay award or settlement, temporary

partial or temporary total workers’

compensation, severance pay, or a

pension paid by a base period employer

(if it has been contributed to solely by the

employer), will aﬀect the payment of the

ﬁrst week(s) of beneﬁts. These payments

are allocated to the weeks following

separation and reduce the payment of

beneﬁts on a dollar for dollar basis. For

example, if an individual receives two

weeks of vacation pay upon separation,

the vacation pay will “disqualify” the

individual for the ﬁrst two weekly

payments. Most of the other types of

disqualifying remuneration are allocated

in the same manner.

Health Leaving Provision

Vermont statute includes a special

provision that allows an individual to

leave work under certain circumstances

due to health reasons and receive un-

employment beneﬁts. Under the

“health leaving” provision of the law, if

the Department ﬁnds that the claimant

has left the employ of his or her last

employing unit, without good cause

a ributable to their employer, because

of a health condition, as certiﬁ ed by a

health care provider, which precludes

the discharge of duties inherent in such

employment, the claimant will be dis-

qualiﬁ ed for one week after which he or

she may receive unemployment beneﬁ ts

provided all other eligibility conditions

are met. The other eligibility conditions

include being able to do some type of

work, so claimants may leave work under

the health leaving provision and still not

get beneﬁ ts. Any beneﬁ ts paid under

the “health leaving” provision are not

chargeable to a base period employer.

Illness and Disability Claims

Claimants who become ill or otherwise

disabled after they have ﬁled an initial

claim for beneﬁts and registered for

work may continue to be eligible for

beneﬁts, unless and until work is oﬀered

to them which is suitable except for the

illness or disability and they turn down

the job oﬀer. A physician or health care

provider will be required to certify such

illness claims.

Continuing Eligibility for

Beneﬁ ts

Once eligible for beneﬁts, the claimant

shall certify on a weekly basis that they

continue to be unemployed and remain

eligible for beneﬁts. Weekly claims can

only be ﬁled between Sunday at 12:00

am and Friday at 4:30 pm and are ﬁled

for the week which ends at midnight on

Saturday. In order to remain eligible for

beneﬁts, the claimant must: 1) be able to

work and available for work; 2) not

refuse an oﬀer of work or a referral to a

job; 3) not quit a job or be ﬁred from a job

41 | Employer Information Manual

(if working part-time); 4) not already

be working full time; and 5) report all

gross wages when earned when

working part-time. The claimant is also

asked to report the receipt of any type

of disqualifying remuneration that

may have been paid after separation.

Disregarded Earnings

A claimant who is employed part-time

may ﬁle for unemployment beneﬁts as

long as the individual reports all gross

wages earned from Sunday through

Saturday for each week they work less

than full-time. The ﬁrst 50 percent of the

claimant’s weekly wage earnings

amount will not be deducted from the

weekly beneﬁt amount. Any amount

above the disregarded earnings amount

is deducted on a dollar for dollar basis

from the individual’s weekly beneﬁt

amount, and the claimant is paid a

partial beneﬁt for that week.

Extended Beneﬁ ts

Additional weekly payments beyond

the 26 week limit for regular unemploy-

ment beneﬁ ts are triggered by high

unemployment levels and are called

“Extended Beneﬁts”. Under the State

extended beneﬁt program, up to 13 extra

weeks of full beneﬁts may be payable to

claimants after they exhaust their

regular payments if they continue to

remain eligible for the receipt of beneﬁts;

the actual amount may be limited by the

duration of the Extended Beneﬁt Period.

These beneﬁts are payable only during

periods of higher unemployment and

are not payable unless a determination is

made that the program has triggered

“on”.

In recent years, Congress has stepped in

during periods of higher unemployment

and provided for special extended beneﬁt

programs, which are paid for solely out of

funds raised through the Federal Un-

employment Tax. These federal programs

have gone into eﬀect even during periods

when the state program would not have

been triggered “on”, and the cost of

beneﬁts paid under the federal programs

do not impose any additional burden on

the state Unemployment Compensation

Trust Fund.

Vermont Department of Labor | 42

UNEMPLOYMENT INSURANCE PROGRAM

INTEGRITY ACTIVITIES

Ensuring the integrity of the unemployment insurance program is a joint responsibility of

employers and the Vermont Department of Labor. In order to maintain a viable program, it is

important that we work together to ensure that only individuals who are eligible receive beneﬁts,

that the process used in awarding or denying beneﬁts is both fair and timely and that in

situations where beneﬁts have been improperly paid due to misrepresentation, steps are taken to

recover beneﬁts that should not have been paid. Employers required by law to pay into the

unemployment trust fund must do so in order to avoid the “cost shift” that can occur when

employers don’t pay their fair share on time. To accomplish these goals, the Department of Labor

has staﬀ dedicated to perform functions of beneﬁt payment control and recovery, delinquent

employer tax collection, Beneﬁt Quality Control, and Revenue Quality Control.

Overpayment and Fraud Prevention

Unemployment beneﬁts paid to an individual, who is later found to have been ineligible

from receiving those beneﬁts due to misrepresentation, and/or a failure to report wages

or disqualifying remuneration, may be required to be repaid to the Department.

Until recently, the two most eﬀective ways of detecting overpayments were ﬁeld investiga-

tions and computer cross-matches. Field investigations are initiated by reports from Depart-

ment employees, employers, private citizens, and others who may tell us, for an example,

that a claimant is working while receiving unemployment beneﬁts. The Department follows

up on reports of fraud tips and takes appropriate action. Computer cross-matches are initi-

ated automatically. Quarterly wage reports are checked against beneﬁt payments during

the same quarter to determine if a claimant was paid unemployment beneﬁts while

working, and if he or she failed to report or incorrectly reported wages. If so, an inquiry is

sent to the employer for whom the individual worked while receiving beneﬁts requesting

weekly wage information for the period in question. This weekly wage breakdown shall be

provided in a Sunday through Saturday format. If the Department can establish a factual

basis for doing so, it will order repayment of beneﬁts. The process of wage cross-match

review is labor intensive, for both the employer and the Department, but until recently, it

represented the only systematic method for the Department to uncover this type of fraud.

New Hire Report Cross-Matches

Recently, the Department implemented a new methodology for helping to identify and pre-

vent unemployment insurance fraud. Since the mid-1990’s, employers have been required to

report each new hire within ten days of the date the employee begins performing work for

compensation. Eﬀective July 1, 2012, employers must report as a new hire any employee

who “has not previously been employed by the employer” or “was previously employed by

the employer but has been separated from such prior employment for at least 60 consecu-

tive days.” This new hire reporting was originally intended to assist with the collection of

past due child support payments owed by non-custodial parents. However, the ability to

more quickly identify individuals who may be both working and collecting unemployment

43 | Employer Information Manual

beneﬁ ts has long been recognized as another

appropriate use of the data collected as part

of the New Hire program.

Employers in Vermont report these new

hires to the Department of Labor.

Employers shall provide the legal business

name, address, and Federal Employment

Identiﬁcation Number (FEIN), as well as

the employee’s name, address, and social

security number. It is also critical to include

the “start date” when reporting new hires,

which is the ﬁrst day the employee began

working for compensation. New hire

information can be reported either through

the Internet by going to www.

labor.vermont.gov and select “Employer

Online Services” and “New Hire

Reporting” or be faxed to (802) 828-4286.

Once ﬁled, the information reported is

transferred to the State Directory of New

Hires at the Oﬃce of Child Support. That

oﬃce in turn transmits the data collected in

Vermont to a National Directory of New

Hires. The National Directory is then used

to track non-custodial delinquent parents

who may move from state to state in order

to avoid child support payments. The New

Hire Reporting program has been very

successful in helping to secure payment of

obligations owed by non-custodial parents

that have helped thousands of custodial

parents and their children.

The Department uses the information in the

State Directory of New Hires to identify

individuals who are both claiming beneﬁts

and working. With the recent approval to

use the National Directory of New Hires for

purposes of unemployment insurance fraud

prevention, the Department has a complete

and comprehensive tool that will not only

help us catch individuals who are both

working and receiving beneﬁts, but also will

reduce the amount of these overpayments

as we learn about them more quickly. Many

overpayments are the result of individuals

going back to work who do not stop ﬁling

until they receive their ﬁrst paycheck, when

the law actually requires individuals to stop

ﬁling as soon as they go back to work. Though

these types of overpayments may be more a

result of confusion over the rules than actual

and intentional fraud, by identifying them

early they can be stopped, or if not stopped

immediately, they can be more quickly

recovered. It is much easier to recover a

smaller overpayment than a large one. So now

employers have two good reasons to report all

new hires within ten days of the date the

individual starts work for compensation.

For additional information on New Hire

Reporting requirements, visit our website or

contact the Vermont New Hire helpline at

802-241-2194 or toll-free at 1-800-786-3214.

What We Do with the

Information

If, upon completion of a ﬁeld investigation or

computer cross-match, it is found that a

claimant has been overpaid beneﬁts, the

overpayment is classiﬁed as either fraudulent

or non-fraudulent. A fraudulent overpayment

occurs when a pattern of deception is evident.

Two or more weeks of earnings that are not

reported or are underreported by the claimant

on his or her weekly claim form constitutes

fraud. Less than two weeks of misreported

wages or reporting net instead of gross wages

on the weekly claim form generally

constitutes non-fraudulent error. Both types of

overpayment, however, can be recovered.

In all cases of fraudulent overpayments,

repayment of the overpaid beneﬁ ts will be

required. Up to 26 “penalty weeks” may also

be imposed, one for each week of beneﬁts

paid as the result of intentional fraud. For

each “penalty week”, the individual shall

ﬁ le an unemployment claim for a week when

he or she would otherwise be eligible, but

no beneﬁ ts are paid to the person. When an

individual is ﬁ ling for beneﬁ ts during a week

which serves against a “penalty week”, no

Vermont Department of Labor | 44

Delinquent Collection

Employers who do not ﬁle quarterly

reports or make payment of unemployment

taxes when due are subject to delinquent

tax collection eﬀorts, as well as claimants

who do not repay amounts owed. The

Department employs individuals whose

primary job is to secure reports and/or

collect amounts owed by claimants and

employers. In the case of an employer,

there is a number of collection tools used in

this process, including agreements for a

repayment schedule, liens on business

property, ﬁeld audit staﬀ, subpoena, and, in

some cases, court action. Entities that are

required to be licensed by the State may

have their license revoked for non-payment

of unemployment taxes. Entities that do

business with the State may also have

vendor payments diverted to the

Department in order to pay all or a portion

of the amount due.

Beneﬁ t Quality Control

The quality control unit reviews un-

employment claims and sends forms to

both employers and claimants to validate

their accuracy. Employer’s co-operation

in returning this information is critical.

Please respond timely to ensure an

accurate determination can be done.

Revenue Quality Control

In the mid-1990’s, the U.S. Department

of Labor, in conjunction with the states,

implemented a Revenue Quality Control

program, which is now known as Tax Per-

formance System (TPS) control. TPS looks

at a dozen aspects of the unemployment

insurance tax operation and uses a statis-

tically valid sample to determine whether

the decisions made in the unemployment

insurance tax program are made in

accordance with law, policy, and procedure.

payment is made and no beneﬁ t charges are

assessed for the week ﬁ led.

In all cases of non-fraudulent overpayments,

the Department may either order or waive the

repayment of the overpaid beneﬁts. If the

claimant made an error on the weekly claim

form, intentional or unintentional, repayment

will be ordered. Similarly, if an individual

received beneﬁts but did not apply for or

accept an oﬀer of available, suitable work,

repayment of the overpaid beneﬁts may be

ordered, unless there was good cause to refuse

the work or not apply for work. In all other

cases of non-fraudulent overpayments, where

the claimant is found to be not at fault for the

overpayment, repayment may be waived.

When a claimant is determined to have been

overpaid unemployment insurance beneﬁts,

the taxable employer’s experience rating is

relieved of charges for the overpaid beneﬁts

immediately, unless the overpayment resulted

from the employer providing erroneous wage

information. Reimbursable employers are only

relieved of charges for overpaid beneﬁts if the

Department recovers the overpaid beneﬁts.

The Department has six years to obtain court

judgments however, an overpayment does

not expire. Frequently, individuals use an

installment payment plan; they make weekly

or monthly payments until they have repaid

all of the overpaid beneﬁts. Overpayments

can also be recovered by offset from future

beneﬁts when the claimant ﬁles another

claim for unemployment benefits. In such

situations, weekly beneﬁt checks are

withheld and the claimant is credited for a

payment in the amount of each check. In

some cases, where an individual is not ﬁling

for unemployment benefits, the Department

may seize State of Vermont income tax

refunds, federal income tax refunds, or

obtain a garnishment order against wages

from current employment. However and

whenever recovered, these overpaid beneﬁts

are returned to the un-employment

insurance trust fund.

45 | Employer Information Manual

UNEMPLOYMENT CLAIMS ADJUDICATION

Not every individual who applies for unemployment beneﬁts is eligible. The program is

designed to pay beneﬁts only to individuals who have a demonstrated “attachment” to work,

measured by the amount of wages paid over a ﬁxed period of time, and who are also

unemployed through no fault of their own, provided such individual is both able to work and

available for work while receiving beneﬁts. Individuals cannot qualify for beneﬁts while they

are fully employed. There are various reasons why the employment relationship may end; in

the majority of cases where a claim is ﬁled, it is the result of a layoﬀ, but other times it is

because the individual quit or was discharged from his or her job.

The unemployment insurance program

is a “remedial” program, which means

that there is a presumption of eligibility

absent facts that would support a dis-

qualiﬁcation. Therefore, the importance

of responding to information requests

when there may be a reason or reasons

to not pay beneﬁts cannot be overstated.

These requests include both forms that

are mailed as well as telephone calls

from Claims Adjudicators who are

assigned to make an initial determina-

tion on eligibility. More than 20% of all

unemployment claims ﬁled in this State

have some type of eligibility issue (either

separation or disqualifying remunera-

tion or both) that has to be reviewed

before the claimant will be paid. There

are strict timeframes imposed by the U.S.

Department of Labor that require the

Department to pay beneﬁts “when due”,

which generally means as soon as the

Department has enough information to

determine whether someone should be

paid, but without unnecessarily delaying

those payments. The U.S. Department of

Labor considers payment within 21 days

of the date the ﬁrst claim is ﬁled to meet

the requirement of payment “when

due”. Since unemployment beneﬁts are

ﬁnanced solely from employer paid

unemployment taxes, there is always a

cost of unemployment beneﬁts that only

employers pay.

If a claimant tells us they were laid

oﬀ when they were actually ﬁ red or

quit their job, and the last employer in

time doesn’t respond to the Separation

Notice, we will pay beneﬁ ts to that

individual by default, ten business days

after the date the claim is ﬁ led. Likewise,

and this is actually more common than

are cases of misrepresentation, there

may be some confusion on the part

of the claimant about the reason for

separation. In some cases, if the claimant

has not already received his or her last

paycheck when they ﬁ le for beneﬁ ts,

they may not know or remember that

they have disqualifying remuneration,

like unused vacation pay, coming to

them. The initial notice of separation also

includes base period wages that will be

used to determine the weekly beneﬁ t

amount, which provides an important

check against mistakes in the wage

record database.

Sometimes a separating employer is

not a base period employer because

the individual has not worked for the

separating employer for a long enough

period. When a separating employer is

not a base period employer, it may

tempting not to respond to information

requests, because there is no immediate

impact on the employers liability to pay

into the unemployment trust fund.

Vermont Department of Labor | 46

If an individual has ﬁled a claim and the employer has information that might lead to a

disqualiﬁcation, it is critical to the unemployment system as a whole for that employer

to furnish a timely response outlining the reasons it believes the individual should not

be paid unemployment beneﬁts. A response to the notice of separation triggers the

adjudication process and is sometimes the only way we know there is an issue that has

to be investigated.

In other cases, employers will respond to the initial notice but then not respond to a

Claims Adjudicator request for additional information. The details of separations,

especially when someone has been discharged, are diﬃcult to identify solely by sub-

mitting a form. Taking a chance that beneﬁts will not be paid, on the theory that if they

are paid it can be undone at the ﬁrst level of appeal, may work for an employer, but in

many cases it causes beneﬁts to be paid that cannot be recouped later from the claimant.

It is always best to try to get these decisions done quickly, accurately, and as soon as the

employer has information that should be considered. Since no response is required when

the individual has been laid oﬀ due to “lack of work”, responding to the 20% of the

claims where there is an issue at stake is not as burdensome in Vermont as it is in some

states that require a response whether or not there is an issue that is being considered.

47 | Employer Information Manual

Notices and Information Requests

There are a number of requests that the Department makes of employers related to

the unemployment benefits claim process. What those requests are and the reason

they are made are as follows:

1. A Wage & Separation Data Request (Form B-70W) is mailed when

we need wages that have not yet been reported to qualify a claimant

under “monetary method” two or three. This request shall be com-

pleted and returned within ten days of the mailing date; failure to

do so will result in a $100 penalty.

2. A Notice of Potential Charges to Your Unemployment Beneﬁt Ac-

count (Form B-10NS) is mailed to employers when a claimant is

determined to be monetarily eligible for beneﬁts and the employer’s

account has been determined to be potentially liable for a percent of

all the beneﬁts paid.

3. A Request for Separation Data (Form B-8F or B-10S) is mailed to

the claimant’s most recent employer to determine the reason for the

claimant’s separation from the employer.

With regard to the Request for Separation Data form, if any of the following apply, you

shall complete and return the notices by the “due date” indicated on the notice. Failure

to do so will result in a $100 penalty and an increased probability of beneﬁts being

paid improperly.

1. The claimant was not your employee or worked somewhere else after

working for you.

The claimant resigned, retired,

or abandoned the employment.

3. You dismissed the claimant for a reason other than lack of work or reduction

in force.

4. The claimant received any payments at separation time.

5. The form does not list the correct ﬁ gure for gross wages that you paid the

claimant.

6. If the person is still working part-time with no reduction in hours.

7. The Return To Work date provided by the employee is incorrect.

The claimant is receiving a monthly pension paid by you as a former employer.

The claimant is on family leave or was hired to cover for an individual on

family leave.

There is no need to return this form to the Department if the claimant was separated

due to a lack of work, did not receive any separation pay at the time of separation

(vacation/wages in lieu of notice or severance pay), and the return to work date the

claimant provided to us is correct according to your records. If you have any questions

about completing the Request for Separation Information, you can call us toll free at

877-214-3331.

Vermont Department of Labor | 48

Instructions for Completing Request for Separation Forms

(B-8F or B-10S)

In addition to the following, feel free to a ach other information that you feel is relevant

to eligibility.

Section A

This section should be completed on all forms that are returned to us.

Start date and the last physical day worked helps us to gauge a claimant’s experience in

this position, which can be relevant in a separation determination. It also helps with the

separation pay. On occasion we do ﬁ nd employer’s who report all wages paid to date

as “Wages in Lieu of Notice”. “Wages in Lieu of Notice” is a payment an employer may

make to compensate a worker when it has not been able to provide advance notice of a

separation.

Hours worked, with an hours per day times the number of days per week, are needed

for a correct allocation of separation pay. We have to allocate based on the customary

work schedule, not just the total hours usually worked per week.

Pay Rate is needed for allocation of separation pay as well as determining the suitability

of the work.

Occupation is needed for suitable work as well as simply having a be er understanding

of what a person’s job duties were in order to more accurately determine eligibility due

to an adverse separation.

Location is needed to determine commuting distance for suitable work.

Separation reason is vital on all claims. Most circumstances will match one of the

choices on the form. If the “Other” box is marked a narrative is required. Please do not

use “Other” if the separation is due to a “reorganization”, “down sizing”, “position

elimination”, or any of the other ways employer may indicate that it is a lack of work

separation. These responses frequently result in the unnecessary delay of payments to

claimants who are eligible. If “Still working Part-time or Hours Reduced” you shall

complete section E so we can determine the cause of the part-time status to evaluate

for an availability issue or charge relief if appropriate.

Section B

Payment information is only necessary if the claimant has received any vacation pay,

wages in lieu of notice, severance pay, or is currently receiving a pension from the

employer. These payments would be made at the time of separation, or if vacation pay

was paid, but not used, within four weeks prior to the date of separation. We are

asking for the gross dollar amount of each type of payment, as well as the number of

hours/weeks/etc that was paid.

Combined Time Oﬀ (CTO) or Earned Time Oﬀ (ETO) should be reported as vacation pay.

Sick pay and holiday pay is not disqualifying under Vermont law, so please do not

include those ﬁgures. Monies paid for any holiday that is not a legally recognized holiday

49 | Employer Information Manual

under 1 V.S.A. § 371, such as the day after

Thanksgiving, is reportable as vacation

pay for the purposes of unemployment

insurance beneﬁts.

Section C

If you have indicated in Section A the

separation was due to a discharge, a

speciﬁc statement regarding the cause of

separation is required. Vague statements

such as “Job Performance” will require us

to do follow up contacts, as we need to

know the exact circumstances or failures

in performance that lead to discharge. If

there is supporting documentation, please

provide it up front. Supporting

documentation should include copies of

written warnings, policies that the

claimant is accused of violating,

attendance records as appropriate, and

anything else the employer feels would

support their decision to terminate

employment. If you prefer not to provide

information due to what is believed to be

in your best interest, please simply write,

“Employer declines to provide speciﬁcs”.

That response is more accurate than “no

protest”. Please note that if you do that,

however, we are likely to pay beneﬁts.

Section D

If you have indicated in Section A the

claimant has resigned, please provide

whatever information you have available.

If it was personal, indicate that. If it

was a choice to resign or be discharged,

Vermont considers this to be a discharge

circumstance and would ask that you

complete Section C.

Vermont law does not recognize a

claimant’s failure to report for reas-

signment as a Voluntary Quit, despite

whatever policies the employer may

have. We look at the reason the claimant’s

position ended, not why they were not

reassigned.

Section E

Under Vermont law, we can evaluate the

potential of charge relief for employers

who have part-time employees who are

ﬁling for beneﬁts. Section E helps us to

understand what the hiring agreement

was, if there has been any change in that

agreement, and if there has been, what

caused the change. We use this informa-

tion to determine if availability issues

need to be explored or if the employer

would be entitled to relief. Completing all

questions asked with speciﬁc information

will help us to determine eligibility for

the claimant as well as potential charge

relief for the employer.

Education Institutions

For those employers who are subject to

the Education Contract provision of the

law, Section A tells us if the claimant falls

under a professional or non-professional

provision of Vermont law, as well as

helping to determine if the claimant

has a reasonable assurance of returning

to the “same or similar” position after

a between terms recess. Information

provided should include the start and

end dates of the academic recess, as well

as the last physical day worked. Include

information on reasonable assurance to

return to the same or similar employment

after the recess or the next term.

Vermont Department of Labor | 50

APPEALS IN THE UNEMPLOYMENT

INSURANCE PROGRAM

The following will give you information on the process for appeals involving the Unemployment

Insurance program. These appeals generally begin with a review of a determination made by

Department staﬀ. Most appeals involve a question of eligibility pertaining to a claim for beneﬁts

by an unemployment claimant. In other cases, Department staﬀ make determinations aﬀecting

an employer’s liability to pay unemployment taxes, either as a new or successor employer, and/or

the requirement to furnish unemployment coverage to an individual or individuals the employer

may have considered to be “independent contractors”. While it is important to respond to initial

requests for information made by this Department, so as to help ensure that the initial

determination is correct, the program provides additional protection to both employers and

claimants through the appeal process.

Participating in the Appeals Process

Participation in the appeals process is the

best way to ensure that your interests are

protected. Administrative Law Judges

make decisions based on the information

that is presented during the hearing. If

only one party participates the judge

may have no option but to rule in favor

of the party that participates. There is a

misperception in the employer

community that the system is tilted in

favor of claimants. Employers who

participate in discharge cases are just as

likely to prevail as the claimant. In cases

involving a voluntary quit from

employment, employers prevail in nine

out of ten cases. If an employer fails to

participate in a hearing, some claimants

who should not be eligible for beneﬁts

may receive them. It is not unusual for

the last employer in time to have no

immediate ﬁnancial stake in the outcome

of an appeal because the employer may

not be a “base period” employer, having

employed the individual for only a short

period of time. In such cases, some

portion of beneﬁts paid may not be

chargeable to a speciﬁc employer, which

will cause them to be “socialized”, which

means that they are paid from the

unemployment trust fund. Socialized

costs drive up the overall cost of the

program to all employers. So even if you

have no immediate and direct ﬁnancial

interest in the outcome of a case, your

participation may provide a balance that

helps all employers who pay into the

unemployment trust fund. Remember,

the trust fund is the only source of

payments made to claimants, and

protection of the trust fund is a goal that

is shared by employers, claimants, and

the Department.

51 | Employer Information Manual

What are the Steps in the Appeals Process?

There are three levels or steps in the appeals process in Vermont, as follows:

1. Appeal to an Administrative Law Judge

2. Appeal to the Employment Security Board

3. Appeal to Vermont Supreme Court

There are speciﬁc time limits for the ﬁling of a timely appeal at each of the above lev-

els. The time limits are outlined in writing at the end of each determination or decision.

The Hearing before an Administrative Law Judge

The ﬁrst and most important step is a hearing before an Administrative Law Judge.

This is the only step in which you can submit evidence, so it is very important to

both participate and provide all your evidence at this step. If the issue under appeal

is a separation from work, the refusal of an oﬀer of suitable work, or some matter

involving your liability as an employer under the unemployment statute, you

should deﬁnitely participate in the hearing. Even though you may have submitted

documents and have spoken to staﬀ of this Department, the appeal hearing will be

your only opportunity to present sworn testimony and introduce documents as

exhibits for this and subsequent appeal levels. If the appeal is based on a question

of claimant eligibility, it will also be your only opportunity to question the claimant

and have those responses recorded. Your failure to participate in the hearing will

increase the likelihood that you will lose. The same is true if you use the services of

an employer representative and that entity does not participate, you are more likely

to lose. If the claimant ﬁled the appeal and you fail to participate in the hearing, the

hearing will go on without your input other than a review of the statements and

documents you have previously submitted to the Department. You should be

prepared to discuss all issues pertaining to the claimant’s employment with you as

identiﬁed in the hearing notice. Even if the determination being appealed was in

your favor, if you do not participate, the decision could be changed because the

Administrative Law Judge will not have your direct testimony to consider.

Do You Need a Lawyer?

Hearings are designed to permit lay persons to represent themselves or another

party. If the issues are complex, if you expect the other party to be represented

by an a orney, or if you think you may have diﬃ culty presenting your case,

you may wish to consult an a orney. If you intend to have an a orney represent

you in the hearing, the a orney should ﬁ le a notice of appearance le er with

the Appeals Oﬃ ce. You should also contact the Appeals Oﬃ ce as soon as

you are aware that you will have an a orney to avoid scheduling delays.

Vermont Department of Labor | 52

Limited English Proﬁ ciency

(LEP) and Sign Language

Interpreters

If either party needs language

translation assistance or a sign language

interpreter, notify the Appeals Oﬃce

immediately. The Department uses a

telephone based language interpretation

service for non-English speaking parties.

If a sign language interpreter is needed,

the Department will make arrangements

for the interpreter to participate with

either party (or both) at one of the Career

Resource Centers.

Americans with

Disabilities Act

This Department complies with the

Americans with Disabilities Act. Should

you require special assistance due to a

disability as deﬁned in the Act in order

to pursue your rights, please contact

the Appeals Oﬃce as soon as possible.

Notice of Hearing

The Notice of Hearing will provide you

with important information about the

time and date of the appeal hearing,

which will be conducted by a telephone

conference. Try to have all witnesses

available at ONE location. Mail or FAX

(802-828-4289) any documents you

want to have considered as evidence in

the hearing to the Appeals Oﬃce and, if

the case involves a question of claimant

eligibility, to the claimant so they can be

considered as part of the record. Do this

as soon as possible following receipt of

the Notice of Hearing so the documents

are received prior to the hearing.

Remember that hearings before an Ad-

ministrative Law Judge are all done by

phone, so there is no way to provide a copy

to a claimant during the hearing. If you do

not send a copy to the claimant, your

exhibits will NOT be entered into the

record, will not be considered in making

the decision, and will not be available for

use later in the appeals process. If your

appeal involves a question of employer

liability or some other issue related to

unemployment insurance taxes, the

Appeals Oﬃce will provide a copy to the

Department staﬀ prior to the hearing.

NOTE: You must call the Appeals Oﬃce with

a telephone number where you can be reached

at the time of the hearing. You will not be

called if you do not supply a telephone number.

Evaluate and Prepare Your

Evidence

The ﬁrst level of appeal is a new review,

which means the Administrative Law

Judge reviews the case based solely on

evidence presented in the hearing record.

The Administrative Law Judge is not

bound by earlier ﬁndings or determina-

tions made by the Department. Since this

will be your only opportunity to present

your evidence, and further appeals only

review testimony and other evidence

introduced at this hearing, you should be

ready to submit your side of the story.

53 | Employer Information Manual

Which Party Has the Burden of Proof?

Having the burden of proof generally means that unless the party which owns the burden can demon-

strate on a factual basis that certain events happened, or in some cases did not happen, the decision will

be made contrary to the interests of the party which owns the burden. If you have the burden of proof,

and for any reason fail to present evidence to support the decision made, you are likely to lose the appeal.

Unlike proceedings in a criminal case, the standard of proof is not “beyond a reasonable doubt”; rather,

the standard of proof is “preponderance of credible evidence”, which is the lower civil case standard.

The Following Issues Are The Most Common Ones That Lead To Appeals By Employers:

ISSUE BURDEN RESTS ON

Discharge from Employment Employer, who must demonstrate that discharge was

for “misconduct”.

Discharge for Gross Misconduct Employer, and the burden is higher in that the

employer must prove some egregious act, for

example theft, violence in the workplace, use of

intoxicants on the job.

Refusal of Suitable Work Claimant, who must demonstrate that s/he should

not have to accept the job that is oﬀ ered.

Voluntary Quit by Employee Claimant, who must demonstrate that the reason

for qui ing is good cause a ributable to the

employer.

Not Able/Available for Work Claimant, who must prove that s/he was both able

to work and available for work. Availability is

often demonstrated by quality of work search, if

one is required.

Disqualifying Income No burden per se, but employer may have to

produce records showing certain payments were

made upon separation.

Liability to provide Department, which must demonstrate that an

unemployment coverage employment/wage liability threshold has been

reached.

Successorship Department, which must demonstrate that the business

has been acquired and continues in operation.

Assessment – Delinquency Department must show that amounts due have not

been paid.

Assessment – ABC Test Employer, who must demonstrate that all three parts of

the “ABC” test have been met.

Unemployment Tax Rate Department, which must demonstrate that information

used in computing the rate is accurate.

Vermont Department of Labor | 54

What Goes on at the

Hearing Before the

Administrative Law Judge?

Testimony is taken under oath and tape

recorded. The appeal is heard by an

Administrative Law Judge. The Admin-

istrative Law Judge will try to bring out

the important and relevant facts in the

case through questioning of the parties.

The Administrative Law Judge will ﬁ rst

determine which records, if any, will be

made part of the record. Depending on

which party has the burden, that party

will go ﬁ rst in presenting its side of the

dispute, including presenting witnesses,

if any. Next, the other side is given an

opportunity to present its side of the

dispute, including presenting witnesses,

if any. Following that, both parties, in

turn, will be given the opportunity to ask

relevant questions of the other. Relevant

information is information that bears

directly on the issues that are being

considered, including the credibility

of witnesses and parties. While these

proceedings are administrative in nature,

and do not follow the same rules as one

would ﬁ nd in a court of law, fairness and

eﬃ ciency may require the Administrative

Law Judge to rule evidence and testimony

out of order.

Prepare in advance. Make a list of your

key points. Be prepared to address all

issues raised in the determination under

appeal. Stay calm. Do not be defensive

or aggressive. You are at the hearing to

present facts and to bring into question

those facts presented by the other

party. Your actions and conduct can be

important factors in the Administrative

Law Judge’s assessment of credibility

of your testimony. For example, if

the claimant quit his job because he

alleges that a foreman was hostile and

threatening, and the foreman comes to

the hearing denying this behavior, yet

demonstrates that behavior in the hearing,

the Administrative Law Judge will most

likely believe the claimant’s allegations.

Make wri en notes of anything the other

party says with which you disagree. This

will help you to answer important points

made by the other party or help you

question the other party when it is your

turn to speak. Your notes can be used to

refresh your memory of certain events,

but you should take care that you not read

these notes word for word. It is generally

more credible to testify from your own

recollections as refreshed by the notes.

Hearsay testimony is admissible evidence

but may be less believable or creditable.

Did You Personally Observe

the Incident?

One of the biggest mistakes employers

make in presenting their case to the

Administrative Law Judge is that the

personnel manager participates in the

hearing with second hand or hearsay

testimony as to the events that occurred.

You should make sure that ﬁrst hand

witnesses, such as the employee or

foreman who observed the incident,

present testimony in the hearing.

Remember, the claimant will be

presenting ﬁrst hand information and if

all you have to oﬀer is “I was told that,”

you will be at a legal disadvantage.

Present documents relevant to the

hearing as exhibits, but do not bury the

Administrative Law Judge in documents.

You need those documents that bear

directly on the incident(s) you are trying

to prove. These documents may include

time cards, warnings, and company

policies. Make sure that you send a copy

of the documents well in advance of the

hearing to the Appeals Oﬃce and

55 | Employer Information Manual

if the case involves a question of beneﬁ t

eligibility, to the claimant as well. If the

claimant has not received them, they

cannot be considered. If there was a series

of incidents leading up to the ﬁ nal act, be

prepared to discuss these incidents also.

The Importance of

Witnesses & Subpoenas

It is extremely important to have relevant

witnesses available for the hearing.

Interview your witnesses before the

hearing so that you know that their

information will be useful to your case.

In the event that a witness is unable

to participate in the hearing, your best

option is to have the witness prepare and

sign a statement about the events. But you

should be aware that such statements are

generally less persuasive and have less

evidentiary weight than credible direct

testimony from a witness at the hearing.

If a witness refuses to appear at the

hearing, you may request that the

Administrative Law Judge issue a

subpoena. You shall make such a request

in writing. It shall include the witnesses

name and street address (no P.O. Box), a

statement that you have requested the

witness to participate and s/he has

refused, and a detailed statement of what

you expect the witness to testify to and

why that testimony is necessary for your

presentation.

Once the hearing is concluded, the

Administrative Law Judge will issue a

wri en decision which will be sent to all

interested parties.

Contacts with the

Administrative Law Judge

Outside of the Hearing

The Administrative Law Judge generally

will have no contact with you or any

party outside of the hearing. This is to

avoid the appearance of unfairness or of

accepting evidence outside the hearing.

Other members of the Appeals Oﬃce will

advise or assist you with procedural

questions. In the State of Vermont, appeal

hearings are CONFIDENTIAL and are

not open to the public.

Postponement of a Hearing

You should make every attempt to

participate in the appeal hearing when

scheduled. Either party may request a

postponement but the postponement

must be for good cause. Good cause is

determined by the Administrative Law

Judge who makes the decision on a case

by case basis. If you wish to have a

postponement, you should immediately

call the Appeals Oﬃce to request one.

Withdrawal of an Appeal

If you wish to withdraw your appeal, you

may do so in writing, or by calling the

Appeals Oﬃce. You should notify the

Appeals Oﬃce as soon as possible prior to

the date of the hearing. If the claimant has

ﬁled the appeal, you cannot withdraw the

appeal and the hearing will take place. If

the appeal is withdrawn, the initial

determination or decision becomes ﬁnal

and cannot be changed.

Vermont Department of Labor | 56

Appeals to the Employment

Security Board

If you do not prevail with the Administra-

tive Law Judge, you may ﬁle an appeal to

the Employment Security Board. This

Board generally reviews only the record

created by the Administrative Law Judge

and they do not take new testimony. The

Employment Security Board will schedule

a hearing, which is conducted in-person in

Montpelier only, and will review the

transcript of the hearing before the

Administrative Law Judge, as well as all

documents which have been entered into

the record before the Administrative Law

Judge. The Employment Security Board

can sustain, modify, or reverse the decision

of the Administrative Law Judge, or in

some cases it will remand the case for

further hearings. Being unavailable for the

hearing before the Administrative Law

Judge is not considered “good cause” to

remand a case back to the Administrative

Law Judge. The Board will make its

decision and issue a written decision.

Appeals to the Supreme

Court

The last step in the appeals process is to

ﬁle an appeal with the Vermont

Supreme Court. The Court may ask the

parties to ﬁle a legal brief in support of

their position and may schedule oral

arguments before the bench. You should

probably consult with an attorney

before proceeding to the Supreme

Court, although there is no Court

requirement to be represented by an

attorney. The Court will only review the

record that was before by the

Employment Security Board. While the

Court will generally defer to the

judgment of the Employment Security

Board, it can also reverse the decision of

the Employment Security Board or

remand a case for further hearing.

57 | Employer Information Manual

OTHER PROGRAMS AND DIVISIONS

WITHIN THE DEPARTMENT

Wage and Hour Program

(802) 951-4083

Vermont’s Wage and Hour Program has a wide variety of responsibilities. Its primary

functions include:

•

investigation, enforcement, prosecution, and attempted resolution of

disputes involving wages, beneﬁts, and wage supplements;

• education and enforcement concerning minimum wage and over-

time requirements;

• education and enforcement concerning child labor laws;

•

providing employers with legally required posters and policies; and

•

responding to inquiries and providing information concerning

employer/employee related issues, including Vermont’s family and

parental leave act, fair employment practices act, sexual harassment

act, and laws addressing military, legislative, and juror duty leave.

Child Labor Information

There are speciﬁc rules and regulations governing employment of individuals under

the age of 18 who are employed in non-agricultural or agricultural employment. If you

are employing or considering employing individuals under the age of 18, pertinent

child labor information is available on our website or by calling (802) 951-4083.

Mandatory Postings

All employers with two or more employees shall prominently post the mandatory

postings so that employees may refer to them. You may obtain copies of them on

our website at www.labor.vermont.gov or by calling (802) 951-4083.

Deductions from Employees Pay

An employer may apply wage deductions as follows:

a. Deductions for goods or services

An employer may deduct for goods and services provided by the employer to the em-

ployee if the following conditions are met:

)

The deduction does not reduce an employee’s wages below the

hourly minimum wage;

Vermont Department of Labor | 58

The employee provides wri en authorization or the employer suﬃ -

ciently documents the employee’s intention to repay;

The deduction is not prohibited by state or federal law or these rules;

and

The deduction shall not exceed the amount the employee agreed to.

b. Deductions authorized by law

An employer may make deductions speciﬁcally authorized by State or federal law,

including deductions for State/federal taxes and child support. The employer may,

with written authorization from the employee, make deductions for contributions for

health insurance or retirement plans.

Employers may not deduct or withhold wages for such things as: an employee’s refusal

or inability to provide or sign documents such as I-9 forms, tax withholding forms, etc.;

an employee’s refusal to provide a notice of or reason for termination; an employee’s

refusal to sign a document written by the employer, etc.; an employee’s inability or

refusal to accept the wages in person (postal delivery is an acceptable means for the

employer to comply with the timely payment of wage law); uniforms or the

maintenance thereof; poor job performance; alleged shortages, bad checks, or credit

cards; destruction of or missing property; etc. Allegations of damages and improper

payment of wages are separate issues and shall be dealt with, if necessary, in separate

court actions. Recovery of alleged damages may be possible through civil action,

whereas illegal withholding of wages is in violation of Vermont’s criminal statutes and

criminal prosecution is possible.

Beneﬁ ts or Wage Supplements

An employer is not required to provide its employees with paid or unpaid holidays

(such as Memorial Day or Thanksgiving), paid or unpaid sick leave (except under

Parental or Family Leave Act), paid or unpaid vacation time, or severance pay when

an employee leaves a business. However, employers who are parties to written

agreements, which can be in the form of an employee handbook, memorandum,

correspondence, etc., providing for vacation time, sick leave, holidays, and /or

severance pay are liable to their employees for those beneﬁts.

59 | Employer Information Manual

Minimum Wage

Vermont’s minimum wage law covers employers employing two or more employees,

unless exempted by statue. Exemptions include, but are not limited to:

•

full-time high school students;

•

agriculture workers;

•

taxi cab drivers;

•

outside salespersons;

•

newspaper or advertisement home delivery persons;

•

persons employed in the activities of a publicly supported non-proﬁ t

organization (except laundry employees and nurses aides or practical nurses);

•

a person employed in a bona ﬁde executive, administrative, or professional capacity;

•

a person employed in domestic services in or about a home; and

•

a person employed by the United States government.

Although full time high school students are exempt from Vermont’s minimum wage

requirements, federal law provides for a minimum compensation for these students.

If you are a federally covered employer interested in the federal youth minimum

wage, contact the U.S. Department of Labor at (802) 951-6283 for more information.

Annually the minimum wage will increase on January 1st from previous year plus 5%

or the percentage increased of the Consumer Price Index, CPI-U U.S., city average, not

seasonally adjusted, or successor index, as calculated by the U.S. Department of Labor

or successor agency for the 12 months preceding the previous September 1st, whichever

is smaller. Additionally, each January 1st the Basic Wage Rate for “service or tipped em-

ployee” will increase at the same rate as the minimum wage rate. A “service or tipped

employee” means an employee of a hotel, motel, tourist place, or restaurant who cus-

tomarily and regularly receives more than $120 a month in tips. For the most up-to-date

minimum hourly wage rates, please visit our website at www.labor.vermont.gov or call

802-

951-4083

Vermont Department of Labor | 60

Labor Market Information

(802) 828-4157

The Labor Market Information Division, is a major source of economic and

career information for Vermont. Other state agencies, private enterprises,

educational institutions, and job seekers often tap the Department’s labor market

resources for information on selected towns and industries.

The industrial employment estimates, occupational employment estimates, labor force

estimates, and wage data are used by a number of organizations to evaluate the

economic health of Vermont and its substate areas. The wage data is a primary input

into the U.S. Department of Commerce’s per capita income estimates. Out-of-state banks

use the information when setting municipal bond rates. Businesses consider labor force

estimates when selecting plant locations. Workers moving to Vermont frequently write

for labor market information. Information is also provided to Vermont schools to help

students in their career decision making.

We also publish economic-demographic county proﬁles annually. This series incor-

porates data from several agencies and provides a summary narrative of the trends and

social dynamics occurring within each county. For questions, please call 802-828-4157.

Additionally, you can access information at our website at: www.vtlmi.info.

61 | Employer Information Manual

Workforce Development

Services and Programs

(802) 828-4342

The Vermont Department of Labor’s Workforce Development Division, through its

statewide network of Career Resource Centers, provides services intended to maintain

the highest possible level of employment by Vermont workers. Unemployment beneﬁts

provide partial wage replacement to eligible workers, thereby helping to stabilize the

local economy. Long-term economic stability can best be achieved by helping jobseekers

ﬁnd suitable work and employers ﬁnd qualiﬁed workers.

Employers can help conserve unemployment insurance funds by listing all job openings

with VDOL, which is the state’s largest single source of labor. By listing your job

openings with the VDOL Resource Center closest to you, you can access qualiﬁed

workers with experience in the full range of occupations, including professional,

clerical, technical, service, skilled trades, and production. Employer Services available

through each of our Resource Center’s include:

• Applicant screening for posted job openings;

• Assistance with recruitment, including scheduling of appointments, as well

as accommodations for interviewing applicants;

•

Labor Market Information to help you make informed decisions on hiring,

compensation, and beneﬁ ts;

•

Information on worker training, including strategies and resources; and

• Rapid Response – timely and comprehensive outplacement support services

in the event of layoﬀ s or plant closures.

Vermont Department of Labor | 62

Vermont JobLink

Vermont JobLink is an Internet-based no-fee job matching and workforce information

system for employers and jobseekers. Employers and jobseekers can access and utilize

a variety of services through management of an individual self-service account.

Access Vermont JobLink from our home webpage at www.labor.vermont.gov or www.

vermontjoblink.com.

Vermont Joblink Services for Employers

By listing your job openings with Vermont JobLink, you can gain access to a large

number of jobseekers. Additionally, an employer can:

•

Create and manage job orders, search jobseeker resumes, and access useful

occupational and labor market information;

• Utilize a Quick Search feature on the Home Page to preview active jobseeker

resumes by geographic location and keywords prior to logging into their

self-service account;

•

Search All Resumes: Employers may set criteria to search jobseeker resumes

utilizing geographic location, experience and education requirements, type

of employment, preferred shift, and travel requirements and can exclude

candidates desiring temporary work. Employers may save these criteria and

create a proﬁle for later resume searches;

•

Search by Type of Job: Employers may search jobseeker resumes utilizing

keyword(s) that identify the job classiﬁcation related to the job order; and

• Saved Resume Search Proﬁ les: Employers may search jobseeker resumes

based on the proﬁ le created and saved from an earlier search for all resumes;

Vermont JobLink Services for Jobseekers

Jobseekers can create a complete on-line, printable resume available to employers

who have approved access to jobseeker information. Resumes can be automatically

e-mailed to employers at the jobseeker’s request. The following eight methods are

available to jobseekers to conduct a job search:

Quick Search: Quickly preview job openings available using keywords and

geographic area, prior to creating or logging in to their self-service account.

Basic Search: Set job search criteria with factors such as geographic area, job

title keywords, type of job, and age of job order. Jobseekers may save these

criteria and create a proﬁle for subsequent job searches.

Search by Type of Job: Use keywords to search from a list of job classiﬁcations.

Search by Employer Name: Search based on the employer name, if interested in

a speciﬁc company.

63 | Employer Information Manual

Search by Resume Objective: Search by resume objective, with a completed

on-line resume.

Search by Job Order ID Number: With a job order number from a previous

search, locate a speciﬁc job order.

Search by Saved Job Search Proﬁle: Search from a saved Basic Search proﬁle.

Job Spidering: Enter keyword and zip code to see all Internet postings within

a 25-mile radius.

Other JobLink services available to job seekers include:

Career Information: Jobseekers can view a listing of growth occupations,

highest paying jobs, and a comparison of various occupational categories.

Eligibility Screening: Jobseekers can self-screen to assess potential eligibility for

additional career-related services.

Other Workforce Development Programs

In addition to the services available to employers, there are several programs

available through the Workforce Development Division that can help employers with

speciﬁc training or recruitment needs or provide ﬁnancial incentives to hire certain

eligible workers. These programs include:

•

On-the-Job Training (OJT) can help to defray some of the costs associated

with hiring and training new workers. Your local Career Resource Center

staﬀ can explain the program and help you decide whether OJT is an

appropriate workforce development resource for your business.

•

Vermont Registered Apprenticeship combines classroom instruction with

OJT training under the supervision of a skilled journey-level worker.

Apprenticeship programs last from one to six years. For more information,

visit our website or call (802) 828-5082.

•

The Work Opportunity Tax Credit (WOTC) is a program authorized by

the Small Business and Work Opportunity Tax Act. It provides incentives

to businesses who hire members of certain groups, who traditionally have

had difficulty obtaining and holding jobs. The WOTC can potentially be

as much as $2,400 for each new adult hire, $4,800 for each new disabled

veteran hire, and $9,000 for each new long-term TANF recipient hired over

a two-year retention period. In addition, WOTC includes the Vow to Hire

Heroes Act of 2011 which extends and expands the Veterans targeted

categories to include unemployed Veterans. For more information, contact

the WOTC Unit at 802-828-5250.

Vermont Department of Labor | 64

Workplace Safety Programs

The Vermont Occupational Safety and Health Administration (VOSHA) conducts

inspections of both Public and Private sector employers to assure they are complying

with the safety and health standards adopted by the State. VOSHA is authorized to

issue citations and penalties for violations of the adopted standards. Inspections are

unannounced and can result from a fatality, an event that hospitalizes three or more

workers, a complaint, a referral, or random selection. The standards for General

Industry and Construction are available from VOSHA at minimal charge or on the

Federal OSHA website at www.osha.gov. Persons that have questions about the safety

and health standards may contact VOSHA at 802-828-2765 or Project WorkSAFE

Consultation at 1-888-SAFE-YES.

VOSHA has programs to assist employers and employees in making their workplaces

safer. A Compliance Assistance Specialist (CAS) provides training and information

to groups so they can improve the safety and health of their workers. The CAS works

to form Alliances with associations to facilitate the sharing of information. Through

Alliances, trade associations agree to disseminate information to their constituents.

The Green Mountain Voluntary Protection Program (VPP) recognizes employers that

have superior safety and health programs. These programs include full participation of

both management and workers. Where there is involvement by both of these groups,

workplaces are safer and more productive. Safer workplaces reduce injuries and

illnesses which can lead to a reduction in the employer’s Workers’ Compensation costs.

Project WorkSAFE is a free, conﬁdential occupational safety and health consultation

program providing business assistance to small Vermont Industries, typically less than

250 employees per site, 500 corporate. However, we will provide services to larger

ﬁrms depending on resources. WorkSAFE seeks to work with Vermont employers to

develop and or maintain safe and healthy conditions in the workplace. Based on a

company’s request, these services are provided with a variety of options. This may

include help over the phone or a site visit to help conduct training and/or perform a

site hazard assessment.

Our consultants can help you with safety audits covering topics such as electrical,

machine point of operation and power transmission apparatus guarding, lock out tag

out, fall protection, and conﬁned spaces. The health audits cover topics as blood borne

pathogens, chemical evaluations, including air monitoring, also no cost, ergonomics,

noise monitoring, non-ionizing radiation evaluations, emergency response, and other

health related hazards. All the consultants on staﬀ can provide help in developing

Safety and Health Programs. Consultants provide clear interpretation of Vermont

OSHA and Federal OSHA regulations and help identify violations of these acts and

other potential hazards. Consultants then provide helpful information on how to correct

these violations. Companies who use this service must agree to ﬁx serious safety and

health hazards identiﬁed by consultation staﬀ.

65 | Employer Information Manual

Project WorkSAFE staﬀ have a variety of backgrounds in environmental health,

occupational health, ﬁre prevention, electrical, chemical, safety management,

construction, and utility, as well as other related ﬁelds, and work with over a hundred

businesses on a yearly basis. If we cannot help you solve your unique problems, we

can assist you in obtaining other recourses that will address your concerns.

Partnerships have been developed with a variety of interested parties and Vermont

employers. Examples include a very successful partnership in safety, oﬀering a free

training seminar, with Green Mountain Coﬀee Roasters Foundation and the Small

Business Development Center (SBDC).

Project WorkSAFE is a separate stand-alone program from the Vermont OSHA program

to insure conﬁ dentiality of clients.

The Safety and Health Achievement Recognition Program (SHARP) recognizes

outstanding companies for their hard work and commitment. See our web page for

more information. We continue to work on certifying and ﬁ nding new companies

with outstanding safety and health programs to be involved in the SHARP program.

Vermont companies are encouraged to work with this program and provide feedback

and input to the program. The beneﬁ t of this collaboration will assist Project WorkSAFE

in gathering information that will be utilized to improve overall professional health and

safety services provided.

Staﬀ are also involved in safety and health seminars around the state. This keeps the

consultants informed of Vermont business needs and concerns regarding safety and

health issues and the costs of workers compensation rates. We continue to work with

SBDC as part of the very successful Vermont Safety and Health Conference, typically

held in February in Burlington, and the annual Governors award for work place safety.

Further information about the above programs or safety and health standards can

be obtained on our website or by calling the VOSHA oﬃ ce at 802-828-2765 or Project

WorkSAFE Consultation at 1-888-SAFE YES (1-888-723-3937). The Project WorkSAFE

webpage allows anyone to ask conﬁ dential occupational safety and health questions by

email, along with the ability to register for a list serve that will notify you of upcoming

safety and health trainings.

The Vermont Passenger Tramway Program was established to prevent unnecessary

hazards in the operation of ski lifts in Vermont. There are three Passenger Tramway

Technicians that conduct inspections of ski lifts throughout the summer and winter

seasons. Operation and maintenance logs and procedures are reviewed regularly

to assure that the ski areas are complying with the codes adopted by the program.

Vermont has over 30 ski areas and more than 150 lifts ranging from rope tows to

chairlifts and detachable chairlifts to gondolas. Regular inspections of lifts by tram-

way technicians not aﬃ liated with the ski areas helps to provide a high level of safety

for the many skiers and boarders that enjoy Vermont ski areas.

Vermont Department of Labor | 66

Passenger tramways in Vermont carry more than four million riders annually. The

Division inspects each of the 184 operating ski lifts, which total over 544,000 lineal feet

of lift line, prior to operation each season and at least four other times during the ski

season. Safety standards are set by the Tramway Board, consisting of two ski area

representatives, two public representatives, and the Commissioner of Labor. Since its

inception, the inspection program has been funded by ski area fees based on the lineal

footage of ski lifts at each area (31 V.S.A. §§ 701-712).

The Passenger Tramway division plays an important role in assuring that skiers and

snowboarders have a safe journey up Vermont’s mountains. The Tramway division

inspects the construction, operation, and maintenance of ski lifts in the State. Our three

tramway inspectors have the important role of providing extra sets of eyes – and a

clear set of standards – for overseeing safety issues. Ski lift safety is something that the

State, ski areas, and lift manufacturers take very seriously.

Further information about the Tramway Program can be obtained on our website or by

calling 802-828-5084.

Workers’ Compensation Program

Workers’ Compensation insurance is mandatory for all Vermont employers. Workers’

Compensation law is intended to provide employees a speedy, no-fault remedy and for

employers liability, which is limited and determinate. The Workers’ Compensation &

Safety Division’s primary role is to adjudicate disputes between injured workers and

the employer’s insurance company. It is also charged with enforcing Vermont’s

Workers’ Compensation laws, including investigating and, if warranted, penalizing

fraud and penalizing employers who fail to purchase workers’ compensation insurance.

What is a Work Injury?

A work injury is an injury that arises out of and in the course of employment. It may be

an injury or an occupational disease and it may occur instantaneously or over time.

Statutory Beneﬁ ts -

An injured worker may be entitled to one or more of the following

•

Medical care/treatment that is reasonable and necessary to treat injury;

•

Lost time if disabled due to work injury (roughly 2/3 of usual work wages);

•

Permanent impairment only if injury results in permanent impairment;

•

Vocational rehabilitation if unable to return to suitable employment; or

•

Death beneﬁts if evidence supports the death arose due to work injury.

beneﬁ ts:

67 | Employer Information Manual

First Report of Injury

Employers must report all work injuries that result in either any medical attention or

one lost day of work or more. Filing a ﬁrst report does not impose liability upon the

employer for that injury. The ﬁrst report of injury must be reported to the Department

and to the employer’s insurance carrier. It is up to the insurance adjuster to deny the

claim.

Denial of a Claim

The insurance adjuster is responsible for denying and adjusting the claim. All

Vermont workers compensation adjusters must be licensed and shall receive annual

training, thus ensuring familiarity with the law and procedures. The adjuster has a

duty to investigate the claim and shall provide evidence to support the denial. Every

claim is unique, therefore the adjuster must be able to contact the employer and to

obtain or communicate essential information about a claim. The adjuster may ask the

employer to provide relevant information about the injury or other pertinent work

place information. The employer, in turn, has the right to request from the insurance

carrier information about the claim and/or the carrier’s investigation.

Burden of Proof is On Employee

The employee has the burden of proving that they suﬀ ered a work injury; their

statement alone is not suﬃ cient. The employee must submit evidence supporting their

claim. If the employee submits evidence, the employer, through its carrier, may submit

contrary evidence. Evidence may include medical records, witness statements, or

documentation of other information relevant to the claim. If both the employee and the

carrier submit contrary evidence, the employee’s evidence must be more persuasive for

their claim to succeed.

More detailed information can be obtained on our website or by calling 802-828-2286.

Vermont Department of Labor | 68

UNEMPLOYMENT INSURANCE AND WAGES DIVISION

FIELD AUDIT STAFF INFORMATION

Montpelier Area ............................................................. 802-828-1147

White River / Barre Area ...............................................802-828-4200

Morrisville Area ..............................................................802-888-2542

Rutland Area ..................................................................802-786-8806

Burlington/So Burlington ...............................................802-951-5147

Middlebury/Williston .....................................................802-652-0328

St. Albans/Colchester.................................................... 802-863-7480

Bennington Area ............................................................802-447-2867

Springﬁ eld / Brattleboro Area ....................................... 802-885-1411

Newport / St. Johnsbury Area .......................................802-334-3303

DIRECTORY OF VERMONT DEPARTMENT

OF LABOR CAREER RESOURCE CENTERS

BARRE

McFarland State Ofﬁ ce Building

5 Perry Street, Suite 200

Barre, VT 05641

Tel.: (802) 476-2600

BENNINGTON

200 Veterans Memorial Drive, Suite 2

Bennington, VT 05201

Tel.: (802) 442-6376

BRATTLEBORO

28 Vermont Street, Suite 212

Brattleboro, VT 05301

Tel.: (802) 254-4555

BURLINGTON

63 Pearl Street

Burlington, VT 05401-4331

Tel.: (802) 863-7676

MIDDLEBURY

1590 Rte. 7 South, Suite 5

Middlebury, VT 05753

Tel.: (802) 388-4921

MORRISVILLE

197 Harel Street

Morrisville, V 05661-4491

Tel.: (802) 888-4545

NEWPORT

Emory E. Hebard State Oﬁ ce Bldg.

100 Main Street, Suite 210

Newport, VT 05855

Tel.: (802) 334-6545

RANDOLPH

50 Randolph Avenue

Randolph, VT 05060

Tel.: (802) 476-2600

RUTLAND

200 Asa Bloomer Building

Rutland, VT 0570

Tel.: (802) 786-5837

ST. JOHNSBURY

1197 Main Street, Suite 1

St. Johnsbury, VT 05819-0129

Tel.: (802) 748-3177

ST. ALBANS

27 Federal Street, Suite 100

St. Albans, VT 05478-2246

Tel.: (802) 524-6585

SPRINGFIELD

56 Main Street, Suite 101

Springﬁ eld, VT 05156-2910

Tel.: (802) 289-0999

WHITE RIVER JUNCTION

118 Prospect Street, Suite 302

White River Jct., VT 05047

Tel.: (802) 295-8805

69 | Employer Information Manual

VERMONT DEPARTMENT OF LABOR

ATTN: Employer Services

P.O. Box 488

Montpelier, VT 05601-0488

Phone: 802-828-4344

Limited Power of Attorney and

Tax Information Authorization

(Business, Estate or Trust)

T Unemployment Account Number

Federal Identification Number

Client Number

Taxpaper's Legal Business Name: ____________________________________________________________________

Trade Name(s): ___________________________________________________________________________________

hereby appoints ______________________________________ as its agent to perform the following acts on its behalf:

(check all that apply):

Receive, prepare and file new and amended Vermont Employer's Quarterly Wage & Contribution Report forms.

Obtain from and provide to this agency information regarding its returns filed for periods on or after the date below.

Discuss matters as they pertain to the rate assignments and experience rating.

Process all necessary forms/inquiries as they pertain to claims potentially filed against its rating/account.

(If this box is NO

selected, please specify the client address where benefit claim related information should be mailed)

Address in Fact: _________________________________

(C-101 Forms, Rate ________________________________

Notices, Statements) ________________________________

Telephone No.: ___________________________________

Client Address: _________________________________

(Only Benefit Claim _______________________________

Related Information) ______________________________

Telephone No.: _________________________________

This Limited Power of Attorney form is effective for the period beginning ________________ and will remain in effect until

this department is otherwise notified.

It applies only to the items which have been selected above as they pertain to the Unemployment Insurance Tax and/or

Benefit related matters for the client.

This limited Power of Attorney revokes all prior Powers of Attorney on file with the Vermont Department of Labor.

________________________________________ ______________________

Person Completing and Signing Power of Attorney Date

________________________________________ ______________________________________

Signature Title of Person Signing Power of Attorney

AFFIRMATION OF WITNESS

I, ______________________________ affirm that _________________________________ appeared to be of sound

mind and free from duress at the time this Limited Power of Attorney was signed, and that (s)he affirmed that (s)he was

aware of the nature of this document and signed it freely and voluntarily.

_________________________________________ ______________________

Signature of Witness (Cannot be same as Notary) Date

FOR USE BY NOTARY

STATE OF_____________________________________

COUNTY OF __________________________________

(Quarter/Year)

, SS.

At _________________________ on the _______ day of __________________________ personally appeared

___________________________________ who acknowledged this Instrument and signed by him/her as his/her free act and

deed, and before me,

________________________________________ . My Commission expires: ____________________________

Signature of Notary Public

C-50 (10/10)

(PLEASE COMPLETE PAGE 2)

Fax: 802-828-4248

Vermont Department of Labor | 70

ATTESTATION OF AGENT

I, _____________________________________ do hereby attest that I accept appointment as agent for

_______________________________________ (hereafter "principal") and:

that I understand my duties under this Limited Power of Attorney and under the law;

that I understand that I have a duty for the principal as to the specific transactions and types of transactions

expressly required to do so in this Limited Power of Attorney;

that I hereby specifically acknowledge and accept such duties to act in signing this Limited Power of Attorne

in the case of such a duty to act, my agreement to act on or behalf of the principal is enforceable against me

regardless of whether there is any consideration to support a contractual obligation;

that I understand and acknowledge in signing this Limited Power of Attorney, that if I have been selected as

with the expectation that I have special skills or expertise I will use those skills on behalf of the principal.

_____________________________________________ _____________________________

Signature of Agent Date Signed

71 | Employer Information Manual

3. Nature of change:

ERMONT DEPARTMENT OF LABOR

ATTN: EMPLOYER SERVICES, P.O. Box 488

Montpelier, Vermont 05601-0488

Telephone: (802) 828-4344

Fax: (802) 828-4248

ERMONT EMPLOYER NO.

NOTICE OF CHANGE

C-36 (12/10)

Complete all items applicable to your organization, trade, business or employment in Vermont.

CHANGE OF ADDRESS/TRADING AS: Corrections to Name and/or Address of record. (NO CHANGE IN OWNERSHIP OR BUSINESS TYPE)

Name: ____________________________________________________ Contact: ___________________________________________________

Trading As: ________________________________________________ Telephone: ________________________________________________

ddress: __________________________________________________ Fax & Email: _______________________________________________

CEASED EMPLOYMENT

No Longer have Vermont Employees

Discontinued operations in Vermont

Explain: _________________________________________________________________

Location of all employment records:

ddress: __________________________________________________________________________________________________________

Contact: ________________________________ Telephone: _________________________ Fax: ____________________________

Email Address: ___________________________________

SALE / LEASE / REORGANIZATION OF BUSINESS

(PLEASE PROVIDE THE FOLLOWING INFORMATION)

1. Date of Change _____________________ 2. Date Final Wages Paid ____________________

LAND

BUILDINGS INVENTORY

MACHINERY

VEHICLES OFFICE

EQUIPMENT

FURNITURE

& FIXTURES

ACCOUNTS

RECEIVABLE

OTHER-SPECIFY

TYPE & PERCENTAGE

ON ATTACHED SHEET.

FRANCHISE

5. Other Assets retained: _________________________________________________________________ Percentage Retained: _______%

6. Enter the complete name, trading as, address and telephone number of the new owners/operators of the business:

Legal Business Name __________________________________________________________________________________________

Trading As ___________________________________________________________________________________________________

Mailing Address _______________________________________________________________________________________________

City, State, Zip ________________________________________________________________________________________________

Contact: _______________________ Telephone Number: _____________________ Email Address: ___________________________

SECTION C CONTINUED ON PAGE 2

Date Employment Ended: ____________________ Final Pay Date: ___________________

If your business is a Corporation, are your officers receiving any wages or draws after the effective date? Yes No

Nature of Change:

Change of Address/Trade Name > Complete Part A, D & E Ceased Employment > Complete Part B, D & E

Sale/Lease/Reorganization of Business > Complete Part C, D, & E

Out of Business - Reason: Ceased Business / Closed Filed for Bankruptcy Foreclosure

ALL of Vermont Business Sold PART of Vermont Business Sold

ALL of Vermont Business Leased PART of Vermont Business Leased

Reor

anization of Business

4. Did you retain title or control of any assets? No Yes - If "Yes" ALL PART (Specify percentages below)

7. Is there any common ownership between the two businesses? Yes No If Yes, attach explanation

Vermont Department of Labor | 72

10. Will you continue to operate a business under this legal entity? Yes No

If "Yes", please give the name and the nature of the business retained/continued: _____________________________________________

________________________________________________________________________________________________________________

11. Will you be starting a new business under this legal entity? Yes No

If "Yes", provide the following: Name of Business: ___________________________________________________________________

Nature of Business: _____________________________ Start Date: ________________ Date First Wages to be Paid: ______________

12. Will direction and control of the business remain the same? Yes No

FOR LEASED BUSINESS ONLY

13. Did the title to any assets go to the lessee? Yes No If, "Yes", please provide information on the assets:

14. Please describe in detail the nature of the leased business:

16. Please describe any other changes not specified above: _________________________________________________________________

I CERTIFY THE ABOVE IS TRUE AND CORRECT TO THE BEST OF MY KNOWLEDGE.

Contact Name: __________________________________ Telephone: ________________ Ext. _______ Fax: ________________________

Signature: _______________________________________ Title: ___________________________________ Date: ___________________

If "Yes", please provide reason: _____________________________________________________________________________________

8. Will the new entity continue to operate this business?

Yes No If No, Explain:

_________________________________________________________________________________________________________________

9. Will you continue to pay wages after the change to your business occurs? Yes No

_________________________________________________________________________________________________________________

Be advised that the sellar of a busines is required to disclose its experience rating to a potential buyer upon

request, in accordance with §1325(b)(1).

15. I understand that as the seller of a business, I am required to disclose the Unemployment Insurance tax expereince rating to

a potential buyer upon request, in accordajnce with

§1325(b).

I have read and understand the proceededing statement.

73 | Employer Information Manual