Vermont Child Care Contribution
The Vermont Child Care Financial Assistance Program aims to ensure fair access to quality child care services, prekindergarten education, as well as afterschool and summer care programs, while supporting the financial well-being of child care workers across the state. This program is funded through a Child Care Contribution (CCC) tax imposed on Vermont employers, calculated as 0.44% of all covered wages paid to employees. Beyond handles the reporting and remittance of CCC taxes using the WHT-436 Quarterly Withholding Reconciliation form.
Key Information About the Vermont Child Care Contribution:
- Contributions are filed and paid similarly to state income tax withholdings.
- The contribution rate is 0.44% of all covered employee wages.
- Employers may withhold up to 25% of the contribution (equivalent to 0.11% of covered wages) from employee wages.
- Deduction and withholding of contributions do not have to be uniform across all employees.
Optional Employee Contribution Rates
Though the total contribution is calculated based on employee wages, the cost is primarily borne by the employer. Vermont employers have the option to reduce their overall contribution by withholding up to one-quarter of this tax (up to 0.11% of covered wages) from individual employees. This withholding amount is at the discretion of the employer and must not exceed 0.11% of the employee’s taxable wages. Employers are not obligated to withhold contributions equally from all employees.
Setting Individual Employee Contribution Rates
For employers opting to withhold employee contributions, withholding rates can vary by employee. Contribution rates set in employee profiles will take precedence over the default company payroll tax rate. This setup allows a default contribution rate to apply to all employees unless a specific individual rate is assigned. Employees without an individual rate will only have contributions withheld if a default rate is entered. No employee’s contribution rate may exceed 0.11%.
Our Tax Accuracy Guarantee
At Beyond, we prioritize the precision of our payroll tax calculations, and our Tax Accuracy Guarantee is designed to protect you by ensuring the correctness of our work. However, since filings are based on information you provide about your business, employees, and applicable tax jurisdictions – including all IDs and rates – it’s essential that this information is accurate and up to date. Our guarantee covers all calculations, filings, and payments we perform based on your submitted data.
In rare cases, Beyond may request additional information or require actions from you to complete tax filings and payments. If such requests are ignored or information is not provided, those filings and payments will fall outside the scope of our Tax Accuracy Guarantee.
Need Help?
You can submit a support request at any time for assistance with tax matters, technical questions, or other payroll support. This is the fastest and most secure way to get help from Beyond.