New Vermont Childcare Tax - 7/1/24

[blacklanternvt]

The title of this thread has been edited by a Square Moderator from the original: "New Vermont Childcare Tax"

Vermont has a Child Care Tax going live on 7/1/24. What do we need to set up in Square Payroll?

[_Violet]

Hi @blacklanternvt - Thanks for reaching out to us here on the Square Seller Community👋

I'm not sure of the answer to this one myself, so I'm going to consult with the Square Payroll team on this one to get the best answer for you. 

I'll reach back out to you here once I gather more info!

[blacklanternvt]

Thanks! There is more information (from our tax department) available here:

https://tax.vermont.gov/business/child-care-contribution

[_Violet · Accepted solution]

Hi there @blacklanternvt - Thanks so much for your patience here 🙏

Our Payroll team provided me the following info: "Effective July 1, 2024, Vermont employers are subject to a 0.44% tax on employees’ wages. All wages subject to Vermont income tax will also be subject to the Child Care Contribution (CCC) tax. Square Payroll will support this new program by calculating and collecting the tax, as well as making the quarterly payment and filing on your behalf. For more information on the program, please visit the state website."

I hope this information is helpful but please do let me know if you have any additional questions 🙂 You can also connect with our Payroll Support Team here.

[StoweStreetCafe]

Starting 7/1 - Vermont is implementing a Child Care Contribution tax. It will be submitted with the withholding tax - it's .44% but employers can split that between employer (.33%) and employee (.11%).

Where do we enter this in square payroll if we're electing to have the employee pay .11%?

Thanks!

[Laurie_]

Thanks for the message, @Donnie-M! 🙏

@StoweStreetCafe So we can consolidate the questions we receive about this topic, I've merged your post with an existing thread where we've already provided the answer to your question. 🙂

[Donnie-M]

@StoweStreetCafe A mod may want to merge this thread.

https://www.sellercommunity.com/t5/Square-Staff-and-Payroll/New-Vermont-Childcare-Tax-7-1-24/td-p/71...