Navigating the intricacies of payroll—be it deductions, taxes, or benefits—is a crucial task for any HR professional or payroll manager, oftengo ...
Rhode Island Paycheck Calculator
Use Rhode Island Paycheck Calculator to estimate net or “take home” pay for salaried employees. Simply input salary details, benefits and deductions, and any other necessary information as prompted below, and let our tool handle the rest.
Where are you employed?
How much do you get paid annual?
How often are you paid?
What is your federal filing status?
Children under 17 and students under 24
All other dependents
Where do you live?
Benefits and Deductions
Federal Income Tax
Alabama State Tax
What Are Payroll Taxes?
Payroll taxes withheld from employee paychecks fund Social Security and Medicare, to which the employer also makes payroll tax contributions.
The Social Security tax is paid by the employee and the employer at a rate of 6.2% of the employee’s wages. The Medicare tax is also paid by both employee and employer, but at a rate of 1.45%.
Employers are also required to pay taxes under the Federal Unemployment Tax Act (FUTA) and the State Unemployment Tax Act (SUTA). The employer must also collect federal income tax from employee paychecks, and pay that amount to the IRS. The rate is determined by the employee’s tax bracket.
Each state also has specific state payroll taxes that must be withheld and paid.
Rhode Island Payroll Taxes
There are four Rhode Island employer payroll taxes to keep track of in addition to Social Security and Medicare.
Employers contribute to:
- State Unemployment Tax Account (SUTA)
- Job Development Fund Tax
Employees pay into:
- State Income Tax
- Temporary Disability Fund Tax
Under SUTA, companies must allocate a portion of their payroll taxes toward the state’s unemployment program, which pays out benefits to the unemployed until they find a new job or the predetermined benefit runs out.
In Rhode Island, the current taxable wage base is $24,600. Your contribution tax rate for the coming year will be calculated and mailed to you every year at the end of December. If you’re a new employer in the state, you’ll be assigned a SUTA tax rate of 0.95%.
You can find more information on the Department of Labor and Training website.
Job Development Fund Tax
The Job Development Fund Tax supports the Governor’s Workforce Board and employment services.
The taxable wage base is $24,600 per employee or $26,100 for those employers that have an experience rate of 9.59 or higher. The tax rate is 0.21%.
Temporary Disability Fund Tax
Employees contribute to the Temporary Disability Fund. The taxable wage base is $81,500 per employee. The tax rate is 1.1%.
State Income Tax
Rhode Island determines income tax rates via three different income brackets:
- $0 to $68,200 3.75%
- $68,201 to $155,050 4.75%
- $155,051 and above 5.99%
Find more information on the Division of Taxation website.
Paying Payroll Taxes
Just as you need an EIN to pay federal payroll taxes, in Rhode Island, you’ll need to register to pay state withholdings and SUTA taxes with the Division of Taxation.
Employers are required to remit state income taxes as follows:
- Weekly: If an employer withholds $600 or more in taxes each month, the employer must report and remit these taxes every week. Payment is due the next banking day following the end of the week. Returns are not required if there was no tax withheld in that week.
- Monthly: If an employer withholds at least $50 but less than $600 each month, the employer must report and remit these taxes every month.
- Quarterly: If an employer withholds less than $50 any calendar month, the employer must remit these taxes each quarter.
For information on how to pay SUTA, job development fund tax, and temporary disability insurance tax visit the Rhode Island Department of Labor and Training website.
Your municipality may also require certain tax registrations, so be sure to check with your local government for requirements.
Using a Payroll Tax Service
In Rhode Island, payroll and payroll taxes come with countless laws and restrictions, which is why many business owners turn to a payroll service provider to ensure their business remains fully compliant. It’s usually less expensive than creating a new staff position for managing payroll, and relatively easy.
You’ll just send over your digital timesheets and relevant information, and the service provider will take care of the calculations, payments, and taxes, freeing you up to focus on growing your business.
We highly recommend hiring a payroll service — as a busy entrepreneur, you won’t regret it!