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Vermont's New Child Care Contributions Tax

Vermont has a new Child Care Contribution (CCC) tax going into effect on July 1, 2024. Employers will pay a 0.44% payroll tax on employee wages subject to Vermont income tax withholding.

 

Employers have an option to deduct and withhold up to one quarter of this tax from their employees’ paychecks and pay the other 75% of this tax. Alternatively, the employer may choose not to withhold any of this tax from their employees’ paychecks and instead pay the entirety of the tax.

 

CCC payroll tax payments will be remitted to the Department of Taxes in the same manner and frequency as Vermont Income Tax Withholding, using the same WHT-436 Quarterly Withholding Reconciliation. Please be sure to advise your Humanic customer service representative if you would like to deduct and withhold any portion of this tax from your employees’ paychecks.

 

Per the State of Vermont, the new law and tax are intended to:


  • Increase access to and quality of child care, afterschool, and summer programs statewide

  • Provide financial stability to child care programs

  • Stabilize and support the state’s early childhood workforce

  • Better support and resource family child care homes

  • Increase equitable access to and quality of UPK offerings for four-year-olds


Plus more . . .


 

For more information from the State of Vermont, please visit: https://tax.vermont.gov/business/child-care-contribution




 

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