The Vermont Statutes Online

Title 32: Taxation and Finance

Chapter 246: Child Care Contribution

• § 10551. Purpose

  The Child Care Contribution is established to provide funding for the Child Care Financial Assistance Program established in 33 V.S.A. §§ 3512 and 3513, including the provision of incentive payments pursuant to 33 V.S.A. § 3515. (Added 2023, No. 76, § 24, eff. July 1, 2024.)

• § 10552. Definitions

  As used in this chapter:

  (1) “Covered wages” means wages paid to an employee by an employer.

  (2) “Employee” means an individual who receives payments with respect to services performed for an employer from which the employer is required to withhold Vermont income tax pursuant to chapter 151, subchapter 4 of this title.

  (3) “Employer” means a person who employs one or more employees who is required to withhold income tax from wages paid to the employees pursuant to chapter 151, subchapter 4 of this title.

  (4) “Self-employed individual” means an individual who earns self- employment income.

  (5) “Self-employment income” has the same meaning as in 26 U.S.C. § 1402.

  (6) “Wages” means payments that are included in the definition of wages set forth in 26 U.S.C. § 3401. (Added 2023, No. 76, § 24, eff. July 1, 2024.)

• § 10553. Contribution; rate; collection

  (a)(1) Each employer shall pay the Child Care Contribution on all covered wages paid to each of the employer’s employees and shall remit those amounts to the Department of Taxes pursuant to the provisions of this section. An employer may deduct and withhold from an employee’s covered wages an amount equal to not more than one quarter of the contribution required pursuant to subsection (b) of this section. An employer shall pay the contributions required pursuant to this section as if the contributions were Vermont income tax subject to the withholding requirements of chapter 151, subchapter 4 of this title, including the requirements relating to the time and manner of payment.

  (2) Each self-employed individual shall pay the Child Care Contribution on self-employment income earned by the individual and shall remit those amounts to the Department of Taxes pursuant to the provisions of this section. A self-employed individual shall make installment payments of estimated contributions pursuant to this subdivision from the enrolled self-employed individual’s self-employment income as if the contributions were Vermont income tax subject to the estimated payment requirements of 32 V.S.A. chapter 151, subchapter 5, including the time and manner of payment.

  (b) The contribution rate shall be 0.44 percent of each employee’s covered wages and 0.11 percent on each self-employed individual’s self-employment income.

  (c)(1) The Department shall collect the contributions required pursuant to this section. The administrative and enforcement provisions of chapter 151 of this title shall apply to the contribution requirements under this section as if the contributions required pursuant to this section were Vermont income tax, except penalty and interest shall apply according to chapter 103 of this title.

  (2) Employers shall be responsible for the full amount of any unpaid contributions due pursuant to subdivision (a)(1) of this section. Self-employed individuals shall be responsible for the full amount of any unpaid contributions due pursuant to subdivision (a)(2) of this section. (Added 2023, No. 76, § 24, eff. July 1, 2024.)

• § 10554. Child Care Contribution Special Fund

  (a) The Child Care Contribution Special Fund is created pursuant to chapter 7, subchapter 5 of this title and shall be administered by the Department for Children and Families and the Department of Taxes. Monies in the Fund may be expended by the Department of Taxes for the administration of the Child Care and Parental Leave Contribution created under this chapter; by the Department for Children and Families for benefits provided by the Child Care Financial Assistance Program established in 33 V.S.A. §§ 3512 and 3513, including the provision of incentive payments pursuant to 33 V.S.A. § 3515; and by the Departments for necessary costs incurred in administering the Fund. All interest earned on Fund balances shall be credited to the Fund.

  (b) The Fund shall consist of:

  (1) contributions collected or recovered pursuant to section 10553 of this title;

  (2) any amounts transferred or appropriated to the Fund by the General Assembly; and

  (3) any interest earned by the Fund.

  (c) The Departments may seek and accept grants from any source, public or private, to be dedicated for deposit into the Fund. (Added 2023, No. 76, § 24, eff. July 1, 2024.)