As of July 1, several new laws have taken effect that will impact employers and employees in Vermont. 

Vermont State Payroll Tax for Childcare Contributions: The first state payroll tax for childcare contributions began on July 1. Employers need to be ready for the additional tax and must make decisions about how this new tax will be divided between the employer and employees. Learn more by watching the Department of Taxes webinar and viewing their presentation for employers.

U.S. Department of Labor’s New Overtime Regulation: The Department of Labor’s new overtime regulation, published on April 26, will raise the salary threshold for executive, administrative, or professional employees in two steps. The first increase on July 1, 2024, raises the salary to about $44,000, and the second on January 1, 2025, raises it to about $58,600. The highly compensated employee threshold will also increase in two steps, with adjustments every three years.