Article
3 min read
Your Ultimate Guide to Rhode Island Payroll
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Author
Jemima Owen-Jones
Published
July 31, 2023
Last Update
September 02, 2024
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Table of Contents
Paying unemployment insurance (UI) in Rhode Island
Rhode Island state unemployment insurance (SUI) tax rates
Withholding personal income tax from your Rhode Island employee
State withholding tax rates in Rhode Island
Paying the job development fund tax in Rhode Island
Withholding temporary disability insurance from your Rhode Island employee
Paying your Rhode Island workers’ compensation
Payroll tax due dates in Rhode Island
Submission process for payroll taxes in Rhode Island
Withholding paid family leave from Rhode Island employees
Simplify US payroll tax compliance with Deel
Key takeaways
- Employers must withhold and pay unemployment insurance, personal income tax, and temporary disability insurance in Rhode Island state.
- Employers must pay job development fund tax with no employee contributions.
- Rhode Island employers must pay for workers’ compensation even if they only have one Rhode Island employee.
Employers must navigate various regulations and requirements to ensure proper payroll withholding in each US state. This guide introduces what employers must pay and withhold from payroll in Rhode Island, including the following:
- Unemployment insurance
- Personal income tax
- Job development fund tax
- Temporary disability insurance
- Workers’ compensation
Paying unemployment insurance (UI) in Rhode Island
On top of withholding federal taxes such as Medicare and Social Security taxes, you are also responsible for withholding and paying certain Rhode Island state taxes from your employee’s payroll. These taxes together are referred to as employer payroll taxes or payroll withholding. One of the taxes you must pay is unemployment insurance (UI).
Unemployment insurance is a national program administered by the US Department of Labor and provides temporary payments to people who are unemployed through no fault of their own. You can manage your Rhode Island unemployment insurance through the online portal.
Refer to the Rhode Island Department of Labor for more information on paying your unemployment insurance.
Rhode Island state unemployment insurance (SUI) tax rates
In Rhode Island, unemployment insurance tax rates are determined annually based on the employer's experience rating and other factors. Employers can access their specific rates through the Rhode Island Department of Labor’s online portal.
Experience rating | Minimum rate | Maximum rate |
---|---|---|
New employer | 1.00% | 2.00% |
Lowest rate | 0.15% | 0.15% |
Highest rate | 9.79% | 9.79% |
Employers are responsible for paying unemployment insurance contributions based on these rates. These contributions help sustain the unemployment fund, providing benefits to eligible employees.
Withholding personal income tax from your Rhode Island employee
Employers are also responsible for withholding personal income tax from their employee’s payroll. Personal income tax, also known as individual income tax or state income tax, is a tax on the income of Rhode Island residents. Employers must withhold the tax from the employee’s wages.
After you withhold the tax from your employee, you are responsible for paying the amount you withheld to the state. You can file and pay the withholding amount online.
For more information on paying the withholding amount, refer to the Rhode Island Department of Revenue.
Deel US Payroll
State withholding tax rates in Rhode Island
Rhode Island uses a progressive tax rate system. Employers must use the state's tax withholding tables to calculate the appropriate withholding amount for each employee, based on their income level.
For more information, visit the Rhode Island Department of Revenue - Withholding Tax.
Income bracket | Tax rate |
---|---|
Up to $66,200 | 3.75% |
$66,201 - $150,550 | 4.75% |
Over $150,550 | 5.99% |
Employers can manage these tax payments using Rhode Island’s tax portal, ensuring timely and accurate remittance. For more information on filing taxes online, visit the Rhode Island Tax Portal.
Paying the job development fund tax in Rhode Island
Employers must pay job development fund Tax in Rhode Island. This tax assists Rhode Island employers by funding a variety of projects designed to improve and upgrade the skills of the existing workforce. The employer pays this tax and does not have any employee contributions. You can file and pay your job development fund tax through the online portal.
Withholding temporary disability insurance from your Rhode Island employee
Unlike workers’ compensation, where the insurance for an employee’s injury while performing their job, temporary disability insurance (TDI) provides temporary benefit payments to workers for non-work-related illness, injury, or pregnancy.
Payroll withholdings fund TDI. The employer’s responsible for withholding and paying the amount to the state. You can file and pay this withholding amount online.
Paying your Rhode Island workers’ compensation
On top of paying your Rhode Island payroll taxes, you will also need to pay for workers’ compensation in the state. You must pay for workers’ compensation even if you only have one Rhode Island employee.
Workers’ compensation is insurance for an employee’s injury while performing their job. Employers typically purchase workers’ compensation from a qualified commercial carrier in the state. Rhode Island State provides information online to help you find a qualified commercial carrier. Employers should verify that their workers’ compensation insurance complies with the state’s regulations for workers’ compensation.
Continuous Compliance™
Payroll tax due dates in Rhode Island
Employers must adhere to payroll tax due dates to remain compliant and avoid penalties. Rhode Island has specific deadlines for filing different types of taxes:
Tax type | Frequency | Due date |
---|---|---|
Weekly payroll | Weekly | 3 business days after payday |
Monthly payroll | Monthly | 15th of the following month |
Quarterly payroll | Quarterly | Last day of the month following the quarter |
Annual reconciliation | Annually | Last day of February following the tax year |
Quarterly tax filings
Employers are required to file quarterly tax reports, with due dates at the end of the month following each quarter:
Quarter | Months | Due date |
---|---|---|
Q1 | January - March | April 30 |
Q2 | April - June | July 31 |
Q3 | July - September | October 31 |
Q4 | October - December | January 31 |
Annual reconciliation
An annual reconciliation of withheld taxes must be submitted by February 28th of the following year. For more information on filing deadlines, visit the Rhode Island Department of Revenue - Filing Deadlines.
Submission process for payroll taxes in Rhode Island
Employers are required to file payroll tax forms electronically using Rhode Island’s tax portal. The state mandates online filing to ensure efficiency and accuracy. Employers should use forms such as RI-W3 (Annual Reconciliation) and other relevant forms for quarterly filings.
The Rhode Island tax portal allows employers to register, file, and pay their payroll taxes electronically, supporting efficient and accurate tax filing and payments.
Withholding paid family leave from Rhode Island employees
Rhode Island does not currently have a separate state-mandated paid family leave program. However, employers may need to comply with federal FMLA requirements and should stay informed about any future state legislation that could introduce similar programs.
FAQs
What is payroll tax?
Payroll tax includes federal, state, and local taxes withheld from employees' wages.
Who needs to file payroll taxes in Rhode Island?
Any employer who pays wages to employees in Rhode Island.
What forms are required for payroll tax filing?
Forms include RI-W3, quarterly withholding forms, and other specific tax withholding forms based on employment type.
How often do employers need to file payroll taxes?
Generally, payroll taxes are filed quarterly, with some annual reconciliation.
Where can employers find the necessary payroll tax forms?
Forms are available on the Rhode Island Department of Revenue website under the 'Employer Payroll Tax Forms' section.
Can payroll taxes be filed electronically?
Yes, through Rhode Island’s online tax portal.
What is the deadline for filing payroll taxes?
Deadlines vary, but quarterly reports are typically due by the end of the month following the quarter's end.
Who can employers contact for help with payroll taxes?
The Rhode Island Department of Revenue.
Simplify US payroll tax compliance with Deel
While this guide provides essential information on Rhode Island payroll taxes, payroll compliance, and state requirements extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel.
Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can streamline your US payroll processes and ensure compliance with state regulations.
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.
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About the author
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.