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Set Up the Employee-Paid Vermont Child Care Contribution Payroll Tax

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

To set up the employee-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 Employee 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 Select which line number to print Child Care Contribution withheld.
    Box 14 Description Enter CCC.
    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 employee-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 0.11%.
    Note: An employer may choose to withhold up to one-quarter of the Child Care Contribution from an employee's wages. The total CCC payroll tax on wages is 0.44% (or 0.0044), which means that the maximum an employer may elect to withhold from an employee is 0.11% (or 0.0011) of the employee's wages.
  3. On the Manage Local Standard Deductions screen, add a record for the employee-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 employee-paid local tax code to applicable employees.