Employer Quarterly Notice

The information below is intended for employers with an active account with the Vermont Department of Labor. Additional information and resources for employers may be found on our website.

Unemployment Insurance Modernization Project Update: Wage Report Filing in the New System

When filing wage reports in the new system, the option to upload an electronic wage file will be accompanied by a template for employers to download and use for reporting.

This template is designed to standardize and simplify reporting and will allow for more streamlined processing of wage reports.

The template includes the following required information for each employee included in the report:

• Social Security Number (SSN)
• Last Name
• First Name
• Middle Initial
• Gross Wages
• Pay Type
• Total Hours Worked During Quarter*
• Gender

*New required field for quarterly reports in the new system

ICESA Format File Specifications

In the modernized unemployment insurance system, only one file format will be accepted for quarterly reporting. This format was developed by the Interstate Conference of Employment Security Agencies (ICESA) and is commonly referred to as the ICESA Format. ICESA is the uniform format for quarterly UI wage reporting.

The layouts for the various record types are described in the ICESA Format File Specifications document. Please review the ICESA specifications and information via the linked document or the below button.

The ICESA Format File Specifications document contains the following information:

• Page 1: Format specifications and overview of record types (see table)
• Page 2: CODE 'A' - Transmitter Record
• Page 3: CODE 'B' - Authorization Record
• Page 4: CODE 'E' - Employer Record
• Page 5: CODE 'S' - Employee Record
• Page 6: CODE 'T' - Total Record and CODE 'F' - Final Record
• Page 7: CODE 'C' - Contribution Record

Please note:

• Only the fields required by Vermont are shown in the document
• Specific field content and structure must conform to Vermont specifications
• All records are 275 BYTES

Stay in the Know!

More information on features of the new system, along with related guidance and resources, will be shared periodically, so be sure to keep an eye out for future communications!

Employee Misclassification

Employee vs. Independent Contractor

Properly classifying workers is essential to maintaining a fair and functioning labor force in Vermont. When the Vermont Department of Labor’s Unemployment Insurance Division refers to someone as an “employee,” it means that person is eligible for unemployment insurance coverage—even if they might otherwise be considered an “independent contractor.” The key factor in determining worker status is the nature of the relationship between the worker and the employer.

How Classification Is Determined?

Under Vermont law (21 V.S.A. §1301), the Department uses the “ABC Test” to decide if unemployment insurance coverage is required. Unless a worker meets all three parts of this test, they must be classified as an employee and reported for unemployment insurance purposes:

A. The worker is free from control or direction in performing the service, both under their contract and in fact.

B. The work is either outside the usual course of the business or is performed entirely outside of all the places where the employer conducts business.

C. The worker is customarily engaged in an independently established trade, occupation, profession, or business.

If any one part of this test is not met, the person must be classified as an employee, and the employer must pay unemployment insurance taxes on their wages.

The Department of Labor exists to improve the lives of working Vermonters.

You can learn more at labor.vermont.gov.

The Vermont Department of Labor is an equal opportunity employer that administers equal opportunity programs. Auxiliary aids and services are available upon request to individuals with disabilities. Free language access assistance is also available. If you are in need of these services, send an email to labor.eoofficer@vermont.gov.