Rhode Island has income tax withholding. An employer must withhold state income taxes from wages paid to employees. The Rhode Island tax rates range from 3.75% up to 5.99%. Additional information is available at www.tax.ri.gov.
Understanding Withholding
To know if you have withholding, examine your pay stub. You should see “Federal Income Tax.” The amount withheld depends on your income and what you entered on Form W-4.
You can change your W-4 anytime to adjust withholding. Just download a new one and give it to payroll. If you are unsure about withholding from paychecks and want to know if you’re exempt, withholding is the federal income tax taken from your paycheck. It doesn’t include Social Security and Medicare taxes. To be exempt, you must’ve had zero liability last year and expect none this year. The exemption lasts only for that year. For continued exemption, you must submit an updated form.
Also, consider your income level. Those making less than a certain amount yearly often don’t pay withholding taxes. Reviewing this helps you know what to expect at tax time. For more help, check out the FAQ page.
State Tax Forms and Deadlines
State Withholding Tax Form
Yes, Rhode Island mandates the submission of an additional form called Form RI-W3, specifically for reconciling state income tax withheld, if state tax withholding is involved.
What is Form RI-W3?
Form RI-W3 is an Annual Reconciliation used to report the total income taxes withheld from employees/contractors.
Rhode Island 1099 and W-2 Deadlines
The deadline to file Form 1099 and Form W-2 with Rhode Island is January 31.
Rhode Island Tax Return Requirements
If you are a Rhode Island resident and you are required to file a federal return, you must also file a Rhode Island return.
The W-4, I-9, and direct deposit permission forms are all federal forms for payroll. Rhode Island requires workers to complete supplemental paperwork called the RI W-4 for state withholding.
Ensure you complete this a few days before payday since Rhode Island law requires businesses to establish a regular payday within nine days of the conclusion of the payment period. If you don’t have a time and attendance system in place, consider using one of the free timesheet templates available.
Does RI Tax Social Security?
Rhode Island taxes most retirement income at rates ranging from 3.75% to 5.99%, including Social Security retirement benefits, with certain stipulations.
Having to comply with unique state taxes and wage laws can be challenging. It’s essential to understand the rates and laws for the state of Rhode Island, as they are determined by the state government and apply only to taxpayers within Rhode Island.