Your Ultimate Guide to Rhode Island Payroll

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.

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.

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.

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.

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:

Quarterly tax filings

Employers are required to file quarterly tax reports, with due dates at the end of the month following each quarter:

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.

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.