Vermont Child Care Contribution

Vermont Child Care Contribution (CCC) is an employer tax. However, employers can opt to share the cost with their employees.

The state defines the maximum employee/employer split. Employee wages earned in Vermont are subject to this tax.

When implementing this tax, there are some areas you should consider.

• What is the employee eligibility criteria

• How to override the tax rate

• How to override the employee/employer split

• How to opt your organization out of this tax

• How to opt an employee out of this tax

• How to cost CCC taxes

• What wage basis rules it follows

Employee eligibility criteria

The payroll process takes this tax for all people working in Vermont.

Override the tax rate

To override the tax withholding rate:

1. To change this tax at the payroll statutory unit (PSU) level, start the Legal Entity Calculation Cards task from your implementation project.

   Use Legal Reporting Unit Calculation Cards task to change this tax at the tax reporting unit (TRU) level.

   Settings at the TRU level override those at the PSU level.

2. In Component Groups, select the Vermont state regional node.

3. In Calculation Components, select State Miscellaneous.

   Create it if it doesn't already exist.

   1. Select the Vermont regional node in Component Groups.

   2. Click Create in Calculation Components.

   3. In Create Calculation Component, select State Miscellaneous.

   4. Select VT.

4. Click Enterable Calculation Values on the Calculation Card.

5. Add Child Care Contribution Rate, and set the appropriate value.

6. Save your work.

Override the employee/employer split

By default, the employer contributes 100% of this tax and the employee 0%.

To change this split up to the maximum allowed by the state:

1. To change the percentages at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   Use Legal Reporting Unit Calculation Cards task to change this tax at the TRU level.

   Settings at the TRU level override those at the PSU level.

2. In Component Groups, select the Vermont state regional node.

3. Click Create in Calculation Components.

4. In Create Calculation Component, select State Miscellaneous.

5. Click Enterable Calculation Values on the Calculation Card.

6. Add Child Care Contribution Employer Percentage and Child Care Contribution Employee Percentage, and set the appropriate values for each.

   Enter each as a percentage, so enter 75% as 75.

   The sum of both must equal 100%.

   Refer to the Vermont tax authority's website for info on the maximum employee contribution percentage.

7. Save your work.

Opt out your organization

To opt your organization out of this tax:

1. To opt out at the PSU level, start the Legal Entity Calculation Cards task from your implementation project.

   To opt out at the TRU level, start the Legal Reporting Unit Calculation Cards task.

2. In Component Groups, choose the Vermont state regional node.

3. In Calculation Components, choose State Miscellaneous.

   Create it if it doesn't already exist.

   1. Select the Vermont regional node in Component Groups.

   2. Click Create in Calculation Components.

   3. In Create Calculation Component, select State Miscellaneous.

   4. Select VT.

4. Select Enterable Calculation Values on the Calculation Card.

5. Choose Employer Tax Exemption.

6. In Value, enter the appropriate exemption status.

   • Exempt from wage accumulation and tax withholding

   • Exempt from tax withholding

   • Not exempt

7. Save your work.

Exclude an individual employee

To exclude an individual employee from this tax:

1. Use the Calculation Cards task to open the person's Tax Withholding card for editing.

2. Choose the Vermont state regional node.

3. In Withholding Exemption, set the appropriate child care contribution setting.

   • Exempt from wage accumulation and tax withholding

   • Exempt from tax withholding

   • Not exempt

4. Save your work.

Cost the tax

To process CCC taxes, cost these predefined elements using the Tax Calculated input value.

• State Miscellaneous Employer Liability

• State Miscellaneous Employee Tax

• State Miscellaneous Employee Tax Not Taken

For further info, see Payroll Costing of Elements for the US in the Help Center.

Wage basis rules

The Vermont CCC rules are predefined using the State Miscellaneous and Not Withholdable State Miscellaneous components for VT. You can view them with the Component Group Rules task. The rules are the same as the Vermont SIT withholding wage basis rules.