Notification of Employment Security Fund Quarterly Tax Statements Delayed

A recent change to the RI Department of Labor and Training Rule 26 will impact quarterly wage information that is submitted to the Employer Tax Section of the RI Division of Taxation.  The most recent Rules and Regulations can be found at the following site: http://www.dlt.ri.gov/pdf/uitdiRulesRegs1008.doc.

Beginning in 2009, employers with twenty-five (25) or more employees are required to submit wage data electronically. This is the only change to the reporting requirements.

Submission deadlines will not change and will continue to be due on the last day of the month following the end of the quarter.

The electronic filing specifications are available on our website at www.uitax.ri.gov

As an alternative, this report may be filed via the Internet at the following site:  https://www.ri.gov/taxation/tx17/

Any questions concerning this reporting change should be directed to the Employer Tax Section at 401.574.8700 -- Option 1 or 2.

IMPORTANT NOTICE TO RHODE ISLAND EMPLOYERS
The following information is effective for calendar year 2009.

Employment Security

          Taxable Wage Base - $18,000 per employee
          Employers will be notified in mid-December, 2008 of their individual tax rate.                    

Job Development Fund
                    Taxable Wage Base - $18,000 per employee
                    Tax Rate - .21 percent (.0021)

Temporary Disability

          Taxable Wage Base - $56,000 per employee

          Tax Rate – 1.5 percent (.015)

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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