Rhode Island Hourly Paycheck Calculator
Rhode Island is unique in many ways and is undoubtedly situated in one of the most beautiful areas in the nation. It is, however, not unique in that it also has complicated payroll taxes and paycheck rules. We’ve answered your most commonly asked questions about Rhode Island’s payroll taxes and regulations below.
Rhode Island state payroll taxes
Does Rhode Island require withholding state income tax from paychecks?
Answer: Yes. Rhode Island assesses a personal income tax between 3.75% and 5.99%, and Rhode Island is a pay as you earn state. That means tax payments must be remitted throughout the year.
How do I determine how much to withhold?
Answer: Rhode Island requires employees to complete Form RI W-4, Employee’s Withholding Allowance Certificate.
With information from Form RI W-4 and your employee’s wage amount, you’ll use Rhode Island’s withholding tables to calculate the amount of tax to withhold.
How do I file and pay withholding tax to Rhode Island?
Answer: First, you’ll need to determine the frequency you need to remit taxes to the state—and that depends on how much tax you withhold in a month. Payment frequencies can be:
- monthly, or
Weekly filers are required to pay electronically at the Rhode Island Division of Taxation website.
Some monthly filers may be required to pay electronically, and some are allowed to pay by check through the mail. All monthly filers will use Form 941M, Withholding Tax Return Monthly.
Quarterly filers are encouraged to pay electronically, although it’s not required.
Regardless of payment frequency, all employers must file quarterly reports using Form 941Q, Withholding Tax Return Quarterly, and an annual summary report using Form RI W-3, Transmittal of Wage and Tax Statements.
I will hire new employees this year. How and where do I report this?
Answer:New hires and rehired employees will need to be reported to the Rhode Island New Hire Reporting Directory. Reporting can be done electronically or, if needed, via telephone. It is also important to note that employers must do this within 14 days of the date of hire. This applies to full-time, part-time, and temporary workers.
What is the minimum wage in Rhode Island?
Answer: The minimum wage in Rhode Island is $12.25 per hour in 2022. This rate will increase on the schedule below:
- $13 on January 1, 2023
- $14 on January 1, 2024
- $15 on January 1, 2025
What are Rhode Island’s overtime rules?
Answer: Hourly workers must be paid overtime—at least 1 1/2 times the regular hourly rate—for any hours worked over 40 in a workweek.
Does Rhode Island require paid or unpaid leave?
Answer: Yes. Rhode Island has two leave laws that employers need to follow.
- Rhode Island Parental and Family Medical Leave Act allows employees who have worked for the same employer for 12 consecutive months to have up to 13 weeks of unpaid leave for parental leave or to care for a sick family member in a two-year period.
- Rhode Island’s Healthy and Safe Families and Workplaces Act requires employers to provide sick leave.
- Employers with 18 or more employees: up to 40 hours of paid sick leave each year.
- Employers with fewer than 18 employees: up to 40 hours unpaid sick leave each year.
When do employers need to give final checks to employees?
Answer: Employers need to give final paychecks to employees no later than the next regularly scheduled payday.
When is Workers’ Compensation insurance required in Rhode Island?
Answer: Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
Do employees need to be paid for holidays?
Answer: Although there are a few exceptions, generally, employees who work on Sundays or specific holidays must be paid at least 1 ½ times their regular hourly wage. The covered holidays include:
- New Year’s Day
- Memorial Day
- July 4th
- Victory Day
- Labor Day
- Columbus Day
- Veterans’ Day
- Christmas Day
How is Rhode Island’s state unemployment tax calculated?
Answer: Employers are responsible for paying Rhode Island’s state unemployment tax. Most employers will pay this tax on the first $24,600 of each employee’s pay each year. Some employers with higher unemployment claims and benefits will pay tax on a higher wage base.
Employers are notified of their tax rate in December each year, and new employers will pay a 0.98% tax rate.
Are there other payroll taxes in Rhode Island?
Answer: There are two more key state payroll taxes to know about.
- Rhode Island job development tax
- This employer-paid tax is used to pay for the administration of the Employment Services and Unemployment Insurance departments. This tax is “paid” by reducing the employer’s unemployment tax by 0.21% to avoid additional taxes being levied on businesses.
- Rhode Island temporary disability insurance tax
- This employee-paid tax is withheld from workers’ paychecks. The current tax rate is 1.3% withheld on the first $74,000 of each employee’s annual pay.
Federal payroll taxes in Rhode Island
Do I have to pay any portion of the federal payroll taxes?
Answer: You will be required to pay a portion of FICA taxes and the federal unemployment tax.
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
|Social Security tax||6.2% on the first $147,000 of wages in 2022|
|Medicare tax||1.45% on all wages|
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but many employers only have to pay 0.6% each year.
What payroll taxes do I need to withhold from my employees’ paychecks?
Answer: There are two key Federal payroll taxes you will need to be aware of.
Federal income tax (FIT):
Each employee will fill out a form called a W-4, Employee’s Withholding Certificate. This form is designed for employees to provide you with vital information you’ll need to calculate the amount of tax to withhold.
On this form, employees disclose how many dependents they have, their tax filing status, and other items. With this information and the federal withholding tables, you can figure out how much tax to take out.
Note that you don’t need to send Form W-4 to the IRS. Keep it in your payroll files.
Additional Medicare tax:
Any employee that earns more than $200,000 in a year will be subject to the Additional Medicare tax. You will need to withhold 0.9% on the excess wages.
When do I pay these federal payroll taxes?
Answer: Your payment frequency depends on how much tax you owe. Payment frequencies can be:
- Next day,
- Quarterly, or
|Federal Payroll Tax Payment Frequency|
|Tax Type||Payment Frequency|
|FICA||Monthly, semi-weekly, or next day|
|Federal income tax withholding||Monthly, semi-weekly, or next day|
|Additional Medicare tax||Monthly, semi-weekly, or next day|
|Federal unemployment tax||Annually or quarterly|
Along with paying the tax, you’ll have some reports to file.
- Form 941, Employer’s Quarterly Federal Tax Return
- Used for:
- Federal income tax withholding
- Additional Medicare tax
- Used for:
- Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return
- Used for:
- Federal unemployment tax
- Used for:
If all this talk about payroll taxes makes your eyes glaze over, give Gusto a call. Our comprehensive payroll packages will handle all of the details for you. We’ll make sure your employees are paid on time and your taxes aren’t late. We keep up with the payroll tax details, so you don’t have to.