Vermont is creating a new payroll tax to fund its Child Care Financial Assistance Program under a bill that will partially go into effect on July 1, 2024.
The payroll tax is 0.44% of an employee’s covered wages, or 0.11% of a self-employed individual’s self-employment income, under HB 217. Employers may deduct one quarter of the tax, or 0.11%, from employees’ wages.
Under the bill, the tax applies to employers that are required to withhold Vermont income tax from employee wages and to employees who have Vermont income tax withheld from their wages. Employers must remit the tax to ...