What is Vermont's child care tax?

Effective July 1, 2024, a percentage of your VT associate's wages may be withheld to provide funding for child care.

Effective July 1, 2024, Vermont employers will be required to make contributions for a new state payroll tax. A portion of the tax may be withheld from employee wages, and the rest must be paid by the employer. The new tax was established to provide funding for child care.
The contribution rate is set at 0.44% of an employee’s wages. Of the 0.44%, an employer may deduct and withhold not more than one quarter (0.11%) of the required contribution. The rest of the contribution must be paid by the employer.