IMPORTANT NOTICE TO RHODE ISLAND EMPLOYERS

ATTENTION EMPLOYERS:

The following information is effective for calendar year 2016.

2016 - Important Notice - Voluntary Contributions

Employment Security

          Taxable Wage Base - $22,000 per employee
                                       ($23,500 for those employers that have an experience rate of 9.79 or higher)

          Employers will be notified in late December of their individual tax rate.

          2016 New Employer rate - 2.27%.

Job Development Fund

          Taxable Wage Base - $22,000 per employee
                                       ($23,500 for those employers that have an experience rate of 9.79 or higher)

          Tax Rate - 0.21 percent (.0021)

Temporary Disability

          Taxable Wage Base - $66,300 per employee

          Tax Rate – 1.2 percent (.012)

 

The primary goal of the Employer Tax Section is to provide and account for the funding needed to pay Unemployment Insurance benefits to eligible jobless workers, and Temporary Disability Insurance benefits to eligible workers idled by non work-related injury or illness. These programs provide economic stability to workers, families, communities and the Rhode Island economy as a whole.

The Employer Tax Section processes all Quarterly Tax and Wage Reports (Form TX-17) and accompanying tax payments, submitted by Rhode Island employers. These payments include all required Employment Security, Job Development Fund, Reemployment Fund and Temporary Disability Insurance taxes.

Employment Security Tax:

Employers pay this tax to fund benefits for workers during periods of unemployment. Contributions collected from Rhode Island employers under this tax are used exclusively to pay benefits to unemployed workers.

Job Development Fund Tax:

Total Job Development 0.21%.

Employers pay an assessment of 0.21% to support the Rhode Island Human Resource Investment Council (HRIC), as well as Employment Services and Unemployment Insurance activities. The HRIC assists Rhode Island employers by funding a variety of projects designed to improve and upgrade the skills of the existing workforce. Each employer's Employment Security tax rate is reduced annually by 0.21% to ensure that this program does not result in a tax increase. For information about the HRIC, refer to their section of the Employer Handbook, or call (401) 462-8860.

Temporary Disability Insurance Tax:

Employees pay this tax through payroll deduction to fund benefits for workers unable to work due to non work-related injury or illness. Employers are responsible for making the required deductions from their workers' earnings and forwarding all TDI withholdings to the Employer Tax Section each quarter along with all required Employment Security, Job Development Fund and Reemployment Fund taxes.