Rhode Island Unemployment Compensation laws & compensation compliance analysis

Rhode Island Unemployment Compensation: What you need to know

Virtually all employers are subject to unemployment insurance taxes under Rhode Island's Employment Security Act (RI Gen. Laws Sec. 28-42-1 et seq.). Coverage extends to:
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• Any employer that employs one or more persons for any part of a day within any calendar year;
• Any employer subject to the Federal Unemployment Tax Act (FUTA); and
• Any employer of a domestic worker that pays $1,000 or more in a calendar quarter (RI Gen. Laws Sec. 28-42-3).
The law excludes certain services from coverage, including, for example, services provided by:
• Students working for schools, colleges, or universities;
• Students working for work-study programs;
• Real estate and insurance salespersons (unless the service is performed for a corporation or by industrial and debit insurance agents);
• Casual laborers (unless the service is provided for a corporation);
• Part-time workers for nonprofit entities; and
• Caddies (unless the service is provided solely for a club) (RI Gen. Laws Sec. 28-42-8).
Taxable wage base. The taxable wage base is tied to the average annual wage. For the current taxable wage base, visit http://www.uitax.ri.gov or http://www.dlt.ri.gov/lmi/news/quickref.htm. The term “wages” includes:
• The reasonable value of any noncash remuneration, such as board, rent, housing, and lodging;
• Commissions and bonuses;
• Vacation pay; and
• Reported tips (RI Gen. Laws Sec. 28-42-3).
Rates. See the above links for the current tax rate. New employers pay a certain set percentage.
Experience rating. After a new employer period, an employer receives an “experience rating” that determines its tax rate for the coming year. The rating is calculated based on the total amount of taxes paid in, the ...

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Rhode Island Unemployment Compensation Resources

Type Title
Policies Unemployment Insurance policy
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