The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
§ 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.)