Vermont Releases 2024 Withholding Methods

Vermont’s 2024 withholding methods were released Dec. 15 by the state tax department.

The value of a state allowance in the withholding methods increased to $5,100 annually, from $4,850, the department said. The tax brackets used in the percentage method were adjusted.

Additionally, the state’s new child care payroll tax starts July 1, 2024, the department said. Employers can withhold up to a quarter of the 0.44% payroll tax, or 0.11%, from employees’ wages but are otherwise responsible for paying and reporting the payroll tax at the same time as withholding deposits and returns.