Question 1

Is PEO licensing required in Vermont?

Accepted Answer

Yes. No person may engage in employee leasing without a license from the Vermont Department of Labor under Chapter 12 of Title 21. The application is made on Form EL-1 and requires a $100 application fee plus a $1,000 license fee.

Question 2

What bonding requirements apply to Vermont PEOs?

Accepted Answer

Vermont requires a $100,000 surety bond or letter of credit for the benefit of the Commissioner. In subsequent years, the bond must be at least 5% of the prior year's Vermont wages, benefits, workers' comp premiums, or unemployment contributions, but never less than $100,000. The bond may be waived for PEOs accredited by an approved national entity.

Question 3

What are the financial requirements for Vermont PEOs?

Accepted Answer

Vermont PEOs must maintain audited financial statements prepared under GAAP showing an adjusted net worth of at least $100,000 or 5% of the prior year's Vermont wages, benefits, workers' comp premiums, or unemployment contributions, whichever is greater. The statements must be prepared within six months by a Vermont-licensed independent CPA.

Question 4

What is the SUI taxable wage base in Vermont?

Accepted Answer

The 2026 SUI taxable wage base in Vermont is $15,400. The new employer rate is 1.0%.

Question 5

Does Vermont have a paid leave mandate?

Accepted Answer

Yes. Vermont has an earned sick time law under 21 V.S.A. 482 that requires employers to provide paid leave. This applies to employees of PEOs operating in the state.

Question 6

What is the minimum wage in Vermont?

Accepted Answer

The Vermont minimum wage for 2026 is $14.42 per hour, effective January 1.

Vermont PEO FAQs: Employee Leasing Licensing, Bonding, and Earned Sick Time

Frequently Asked Questions