{"id":6347,"date":"2023-08-21T20:18:00","date_gmt":"2023-08-21T20:18:00","guid":{"rendered":"https:\/\/www.brightmine.com\/us\/?post_type=resources&p=6347"},"modified":"2026-06-26T05:31:56","modified_gmt":"2026-06-26T10:31:56","slug":"vermont-child-care-contribution-tax-enacted","status":"publish","type":"resources","link":"https:\/\/www.brightmine.com\/us\/resources\/hr-compliance\/payroll\/employee-taxes\/vermont-child-care-contribution-tax-enacted\/","title":{"rendered":"Vermont Child Care Contribution tax enacted"},"content":{"rendered":"\n
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Written by: <\/p>\n\n\n

Rena Pirsos<\/a><\/div><\/div>\n\n\n\n
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Share<\/p>\n\n\n

<\/a><\/a><\/a><\/a><\/div><\/div>\n<\/div>\n<\/div>\n<\/div>\n\n\n\n

Beginning July 1, 2024, employers<\/a> and employees in Vermont will be liable for a new Child Care Contribution withholding tax. Vermont will be the first state to mandate withholding for child care purposes.<\/p>\n\n\n\n

Vermont’s legislature passed the bill<\/a> creating the new withholding tax after overriding a veto from Gov. Phil Scott, who said<\/a> raising revenue for child care from taxes and fees “should be a last resort, not a first step.”<\/p>\n\n\n\n

The wages against which the tax will be withheld will be wages subject to federal income tax withholding<\/a>. The contribution rate will be 0.44 percent of each employee’s covered wages. Employees will pay 25 percent of this rate, or 0.11 percent, with employers paying the remainder. Employers will be responsible for the full amount of any unpaid contributions.<\/p>\n\n\n\n

Self-employed individuals \u2014 sole proprietors or partner owners of an unincorporated business, sole members of a limited liability company or sole shareholders of a corporation \u2014 will pay 0.11 percent on their self-employment income.<\/p>\n\n\n\n

Employers will remit the contributions as if the contributions were withheld income taxes, according to the following schedule<\/a>:<\/p>\n\n\n\n