The Vermont Child Care Financial Assistance Program is designed to secure equitable access to quality child care services, prekindergarten education, and afterschool and summer care programs, while providing financial stability to child care workers throughout the state. It's funded by Vermont employers by way of a Child Care Contribution (CCC) tax in an amount equal to 0.44% of all covered wages paid to employees. OnPay reports and remits CCC taxes using the WHT-436 Quarterly Withholding Reconciliation form.
Vermont Child Care Contribution Details:
- Contributions are filed and paid in the same manner as state income withholdings
- Contribution amount is equal to 0.44% of all covered employee wages
- Up to one quarter of this contribution (up to 0.11% of covered wages) can be withheld from employee wages
- Employers are not required to deduct and withhold contributions from all employees, equally
Optional employee contribution rate(s)
It's important to note that, while the contribution amount is calculated based on employee wages, this is an employer-paid contribution. That being said, Vermont employers are allowed to reduce their contribution by deducting and withholding up to one-fourth of this tax (up to 0.11% of covered wages) from any individual employee’s covered wages. The amount deducted and withheld is at the employer's discretion, provided it does not exceed 0.11% of the employees taxable wages. Employers are not required to deduct and withhold contributions from all employees, equally.
Entering a contribution rate for all employees
Go to Company, then Payroll Taxes.
Do you pay employees in multiple states?
If so, select Vermont under "Payroll Taxes".
Note: This rate applies to employees who physically work in Vermont.
Click Update under "Vermont Child Care Contribution (CCC) Employee Rate" to enter a withholding rate for your Vermont employees. This rate can not exceed 0.11%. If you leave this field blank, no employee wages will be withheld for this tax unless individual contribution rates are entered in employee profiles.
You may enter any value between 0.00001% and 0.11%.
When you're finished, click Save.
Entering individual employee contribution rates
Employers who choose to deduct and withhold employee contributions for this tax are not required to apply the tax to all employees equally. Contribution rates entered in employee profiles will override any rate entered in Company Payroll Taxes. This allows you to set one default rate that applies to all employees unless an individual rate has been set. If no employee rate is entered in "Payroll Taxes", only employees with an individual contribution rate will have wages withheld for this tax. No individual employee's contribution rate may exceed 0.11 percent.
Go to Workers, and click an employee's name to view their profile.
In the employee profile, click the Tax Withholding tile to edit.
Scroll down to "Vermont withholding details", and enter a rate for this employee under "Child Care Tax Percentage". The rate entered may not exceed 0.11%.
Our Tax Accuracy Guarantee
Bottom line: We take the accuracy of our payroll tax calculations very seriously — and our accuracy guarantee ensures we’ll always have your back.
However, because we file on your behalf using information provided by you, it's important that you provide and input accurate information about your company, its employees, and the states and districts in which they live and your business operates, including all IDs and tax rates. Our Tax Accuracy Guarantee picks up where you leave off by covering all our calculations, and the filings and payments we base on them.
In rare circumstances, OnPay may need additional information from you, or may request you take action in order for us to file and pay your taxes. If such information is requested by us, but never provided by you, any affected tax filings and payments will not be covered by our Tax Accuracy Guarantee.
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