Tax

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IRS Launches Eligibility Information Page for Employer-Provided Childcare Credit 

Employers may qualify for an annual tax credit of up to $150,000 to help cover a portion of facility, resource, and referral costs associated with providing child care services for their employees. For more information about claiming the credit and requirements for qualification, refer to the Employer-Provided Childcare Tax Credit page on the IRS.gov website. 

 

IRS Announces Employee Retention Tax Credit Voluntary Disclosure Program (ERC-VDP) 

A new program will assist employers who erroneously benefitted from the ERC. The ERC was part of the CARES Act, providing a refundable tax credit against employment taxes to offset the economic downturn during the pandemic. Employers who apply and qualify for the Voluntary Disclosure Program receive a discount on the repayment for credits mistakenly received and will not be subject to interest and penalties. Refer to the FAQ page on the IRS website for details and program application form. Deadline to participate in the program is March 22, 2024

 

Vermont

Vermont Child Care Contribution Tax 

Effective 7/1/24, Vermont employees will have an additional payroll income tax for child care contributions. According to Act 76 of 2023, related to child care and early childhood education, the Department of Taxes will implement and administer a new Child Care Contribution (CCC). Vermont employers will be required to pay a 0.44% payroll tax on all employee wages earned, and employers may deduct and withhold a maximum of 25% of the required contribution (i.e., 0.11%) from employee wages. This tax will be used to fund investments in Vermont's child care system. More details can be found in this tax guide 

 

 

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