Vermont Child Care Tax
Coming Soon…
Background
The Vermont Child Care Contribution, established through Act 76 of 2023 concerning child care and early childhood education, aims to finance improvements in Vermont’s childcare infrastructure. A provision within this legislation (32 V.S.A. Chapter 246) assigns the Vermont Department of Taxes the responsibility to introduce and oversee a novel payroll tax called the Child Care Contribution (CCC) on employee wages.
Effective July 1, 2024 employers are required to pay a 0.44% payroll tax on all employee wages earned in Vermont. Employers can withhold 0 – 25% of the 0.44% (a maximum withholding of 0.11%) from employee pay.
- Go to Settings > Payroll > Child Care Taxes > Vermont.
- Enter a percentage amount between 0 and 25 that you want to withhold from your employees for the child care tax.
- Enter the effective date of the withholding percentage.
- Click “Save”.
If you have made changes, you can view the rates and dates of past contribution rates at the bottom of the page.
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