Beginning July 1, 2024, employers and self-employed individuals will be required to pay the Vermont Child Care Contribution tax. Per Act 76 of 2023, employers will pay a 0.44% payroll tax on wages paid, with an option to withhold up to 25% of the tax from employees. Self-employed individuals will pay a 0.11% tax on self-employment income.
Employers’ first payment of the Child Care Contribution will be due October 25, 2024, calculated on wages paid from July 1, 2024, through September 30, 2024, for wages subject to Vermont withholding. Self-employed individuals will pay the self-employment Child Care Contribution when filing their 2024 Vermont personal income taxes in calendar year 2025.
The Vermont Department of Taxes has published a guide on the Child Care Contribution available on our website: The Vermont Child Care Contribution.
The Department is also hosting webinars to help taxpayers understand their responsibilities related to the Child Care Contribution.
These webinars will be held on:
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May 14, 2024, at 11:00 a.m. – 12:00 p.m. EST for self-employed individuals
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May 21, 2024, at 1:00 p.m. – 2:00 p.m. EST for employers
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June 4, 2024, at 11:00 a.m. – 12:00 p.m. EST for self-employed individuals
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June 11, 2024, at 11:00 a.m. – 12:00 p.m. EST for employers
To join a webinar and learn more about the Vermont Child Care Contribution, please visit tax.vermont.gov/child-care-contribution.