BURLINGTON, Vt. (WCAX) – Starting on Monday, you could see a new tax listed on your pay stub.
As of July 1, employers will pay a point 4.4% payroll tax on wages paid towards the Vermont Child Care Contribution tax. Employers can choose to withhold a quarter of that tax from employees.
Self-employed Vermonters will pay a point 1.1% tax on self-employed income.
That is thanks to Act 76 passed by the legislature in 2023 with the goal of easing the state’s child care crisis.