§ 2054 Contributions; Rate; Collection

(a) The following contribution rates shall apply to employees and enrolled self-employed individuals.

(1)(A) Contributions for employees shall equal 0.58 percent of each employee’s covered wages.

(B) Employers shall be responsible for one-half of the contribution amount and employees shall be responsible for the remaining half.

(C) Employers shall deduct and withhold from each employee’s covered wages the employee’s portion of the contributions due.

(D) In lieu of deducting and withholding the full amount of the employee’s portion of the contribution, an employer may elect to pay some or all of the employee’s portion of the contributions.

(E) As used in this subdivision (1), the term “covered wages” means all wages paid to an employee by an employer up to an amount equal to two times the maximum Social Security Contribution and Benefit Base.

(2)(A) Contributions from enrolled self-employed individuals shall equal 0.58 percent of each enrolled self-employed individual’s covered work income.

(B) As used in this subdivision (2), the term “covered work income” means self-employment work income earned by an enrolled self-employed individual up to an amount equal to two times the maximum Social Security Contribution and Benefit Base.

(b)(1) Notwithstanding subsection (a) of this section, the General Assembly shall annually establish the rate of contribution for the next fiscal year. The rate shall generate contributions in an amount equal to the sum of the projected amount necessary to provide benefits pursuant to this chapter during the next fiscal year plus a reserve equal to at least nine months of the projected benefit payments for the next fiscal year plus the projected cost to administer the Program during the next fiscal year minus any balance in the Fund from the prior fiscal year.

(2) On or before February 1 of each year, the Director shall report to the General Assembly the rate necessary to generate contributions in an amount equal to the sum of the projected amount necessary to provide benefits pursuant to this chapter during the next fiscal year plus a reserve equal to at least nine months of the projected benefit payments for the next fiscal year plus the projected cost to administer the Program during the next fiscal year minus any balance in the Fund from the prior fiscal year.

(c)(1) The Commissioner of Taxes shall collect the contributions required pursuant to this section and shall deposit them into the Fund.

(2) Employers shall withhold contributions pursuant to subdivision 20 (a)(1) of this section from wages that employers pay to employees as if the contributions were Vermont income tax subject to the withholding requirements of 32 V.S.A. chapter 151, subchapter 4. The administrative and enforcement provisions of 32 V.S.A. chapter 151 shall apply to the contribution and withholding requirements under this section as if the contributions due pursuant to subdivision (a)(1) of this section were Vermont income tax.

(3) Enrolled self-employed individuals shall make installment payments of estimated contributions pursuant to subdivision (a)(2) of this section from the enrolled self-employed individual’s covered work income as if the contributions were Vermont income tax subject to the estimated payment requirements of 32 V.S.A. chapter 151, subchapter 5. The administrative and enforcement provisions of 32 V.S.A. chapter 151 shall apply to the estimated payment requirement under this section as if the contributions due pursuant to subdivision (a)(2) of this section were Vermont income tax.

(d) An employer with an approved private plan pursuant to section 2060 of this chapter shall not be required to withhold and pay contributions pursuant to this section.