IMPORTANT NOTICE TO RHODE ISLAND EMPLOYERS

A recent change to RI Department of Labor and Training Rule 26 will affect the quarterly wage information that employers must submit to the Employer Tax Section of the Division of Taxation.

Employers have always been required to report the social security number, name, and wages paid to each employee during the quarter. Beginning with the fourth quarter of 2007, employers must also report:

• total number of weeks each quarter that the employee received wages
• total number of hours each quarter that the employee received wages

This information should be reported in whole numbers only. Please do not submit fractions or partial numbers of weeks or hours. This required change will allow the RI Department of Labor and Training to certify the eligibility of employers who apply tax credits. Submission deadlines will not change. Reports will continue to be due on the last day of the month following the end of the quarter. Also, submission methods remain the same: employers may report the information in the appropriate section of the quarterly Tax and Wage Report (TX-17), attach a page or pages with a similar format to the TX-17, submit a properly formatted diskette, file via the Internet, or have a third party file the information on their behalf.

Together the RI Department of Labor and Training and the Employer Tax Section will make every effort to ensure that this reporting change is implemented as smoothly as possible for all concerned. The TX-17 that has been mailed to all employers has been modified to accommodate the reporting change. In addition, the electronic filing specifications, as well as our Internet filing option, have been modified and are available on our website at www.uitax.ri.gov. This office will also work with third party filers so that they will be able to comply with this change. Any questions concerning this reporting change should be directed to the Employer Tax Section at
401-574-8700.

Thank you for your continued cooperation.

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:

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.

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