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Summary of differences between federal and state regulations
Income tax withholding
Under the Rhode Island personal income tax system, as under the Federal system, employers are required to withhold a portion of each employee's wages and to periodically remit these funds withheld to the Division of Taxation.
Generally, Rhode Island withholding is required to be withheld from the wages of an employee by a Rhode Island employer. "Rhode Island employer" means an employer maintaining an office or transacting business within this state.
A Rhode Island employer must withhold Rhode Island income tax from the wages of an employee if:
- The employees' wages are subject to Federal income tax withholding, and
- Any part of the wages were for services performed in Rhode Island.
Employers withholding Rhode Island personal income tax from employees' wages must report and pay the taxes withheld to the Division of Taxation on a periodic basis depending upon the amount of withholding made from employees' wages.
Unemployment taxes
All states finance UC primarily through contributions from subject employers on the wages of their covered workers. In addition, three states (Alaska, New Jersey, and Pennsylvania) collect contributions from employees. These taxes are deposited by the state to its account in the UTF in the Federal Treasury, and are withdrawn as needed to pay benefits.
Many states have adopted a higher tax base than what is provided in FUTA. Hawaii's wage base is usually higher and changes periodically. In all states, an employer pays a tax on wages paid to each worker within a calendar year up to the amount specified in state law. In addition, most of the states provide an automatic adjustment of the wage base if federal law is amended to apply to a higher wage base than that specified under state law. As a result of the many variables in states taxable wage bases and rates, benefit formulas, and economic conditions, actual tax rates vary greatly among the states and among individual employers within a state.
Wages subject to unemployment tax in this state equal $14,000.
Minimum and maximum rates in this state are 1.69 and 9.79%. Rates apply to experience rated employers only and do not include applicable surtaxes or penalties.
State
Contacts
Income tax withholding
Division of Taxation
Unemployment taxes
Department of Labor & Training
Regulations
Income tax withholding
PIT 97-15 Employers' Withholding
http://www.tax.ri.gov/regulations/other/pit97-15.php
Unemployment taxes
Rules for Unemployment Insurance
https://roar-assets-auto.rbl.ms/documents/14836/TaxcreditsRandRs.pdf
Federal
ContactsInternal Revenue Service
Regulations Title 26 Code of Federal Regulations, Internal Revenue