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Set Up Employer-Paid Vermont Child Care Contribution Payroll Tax

Use the steps to create an employer-paid local tax record for Vermont's Child Care Contribution Payroll Tax.

To set up the employer-paid local tax for Vermont:

  1. On Manage Local Taxes screen, enter a local tax code to represent the employee-paid Child Care Contribution Payroll Tax and set other local values as needed.
    Field Description
    Locality Enter a local tax code that represents the employee-paid Child Care Contribution Payroll Tax.
    State Enter VT
    Tax Paid By Select the Employer option.
    Tax Type Select the Child Care Contribution Tax option.
    Note: If this option is not yet available, you may select Other Income Tax temporarily and then replace it with Child Care Contribution Tax (once available).
    W-2 Box 14 Usage Not Applicable. Only the employee-paid amount is reported on the W-2 form. The employer should report the portion of CCC withheld from the employee for the tax year on Box 14 of the employee's W-2.
    Box 14 Description Blank
    Local Tax Details
    • Effective Date: 07/01/2024
    • Tax Based On: Gross Pay
  2. On the Manage Local Tax Tables screen, add a record for the employer-paid Child Care Contribution Payroll Tax local tax code and enter the corresponding field values for each filing status.
    Field Description
    Effective Date Enter 07/01/2024.
    For Taxable Income Over Enter 0.00.
    Base Tax Plus Enter 0.00.
    Percent of Excess Enter 0.33%.
    Note: Employers are responsible for at least three-quarters of the tax but can choose to pay more.
  3. On the Manage Local Standard Deductions screen, add a record for the employer-paid Child Care Contribution Payroll Tax local tax code for 07/01/2024 and set all values to 0.00.
  4. On the Manage Employee Taxes screen, assign the employer-paid local tax code to applicable employees.