RI Employer's Income Tax Withholding Tax Booklet (2024)

RHODE ISLAND EMPLOYER'S

# CONTENTS

Employer's Tax Calendar … 3 - 4
Page
Instructions … 5 - 8

# WITHHOLDING METHODS AND TABLES

# EMPLOYER'S TAX CALENDAR

Type of Return Form Number

# WEEKLY

(see Section 6 of these instructions)
*MONTHLY WTM/RI-941M

# Due Date

To be filed with the RI Division of Taxation on the
Monday after the date the payroll is paid.

# NOTE - ELECTRONIC FILING MANDATE:

MUST be paid by electronic means or be subject to penalty.
If you have any questions, contact the Division's Tax
Portal Team:
Email: Tax. Portal@tax.ri.gov
Phone: (401) 574-8484
For NON-QUARTER ENDING MONTHS:
Withholding Tax Return
(see Section 6 of these instructions)
Monthly
(Months of January, February, April, May, July, August,
October and November)
Form WTM (RI-941M) is to be filed with the RI Division of Taxation on or before the 20th day of the following month.
For QUARTER ENDING MONTHS:
(Months of March, June, September and December)
Employer's Quarterly
Tax Return and
Reconciliation
Form RI-941 - Employer's Quarterly Tax Return and
Reconciliation - is to be filed on or before the last day of the following month.

# NOTE - ELECTRONIC FILING MANDATE:

Some employers will be required to file and pay Rhode
Island withholding tax by electronic means or be subject to penalty.
If any of the statements below is true for the employer, the employer must file and pay Rhode Island withholding electronically or be penalized.

1. The employer's average Rhode Island withholding for the previous calendar year is $200 or more per month;
2. The employer operates as a business whose combined annual liability for the entity for all taxes administered by the RI Division of Taxation is equal to or exceeds $5,000;
3. The employer operates as a business whose annual gross income for the entity is over $100,000.

If you have any questions, contact the Division's Tax
Portal Team:
Email: Tax. Portal@tax.ri.gov
Phone: (401) 574-8484

# Type of Return

*QUARTERLY
(see Section 6 of these instructions)

• QUARTERLY RECONCILIATION

(see Section 9 of these instructions)

• ANNUAL RECONCILIATION

# Form Number

Employer's Quarterly
Tax Return and
Reconciliation
Employer's Quarterly
Tax Return and
Reconciliation

# Due Date

For quarters ending March, June, September and
December, Form RI-941 - Employer's Quarterly Tax
Return and Reconciliation - is to be filed on or before the last day of the month following the end of the quarter or at the termination of business.

# NOTE - ELECTRONIC FILING MANDATE:

Some employers will be required to file and pay Rhode
Island withholding tax by electronic means or be subject to penalty.
If any of the statements below is true for the employer, the employer must file and pay Rhode Island withholding electronically or be penalized.

1. The employer's average Rhode Island withholding for the previous calendar year is $200 or more per month;
2. The employer operates as a business whose combined annual liability for the entity for all taxes administered by the RI Division of Taxation is equal to or exceeds $5,000;
3. The employer operates as a business whose annual gross income for the entity is over $100,000.

If you have any questions, contact the Division's Tax
Portal Team:
Email: Tax. Portal@tax.ri.gov
Phone: (401) 574-8484
For the months of March, June, September and
December, Form RI-941 is to be filed on or before the last day of the following month.
To be filed with the Division of Taxation on or before
Transmittal of Wage and
(see Section 10 of these instructions)
Tax Statements
January 31st or at the termination of business.

# NOTE - ELECTRONIC FILING MANDATE:

Some employers will be required to file and pay Rhode
Island withholding tax by electronic means or be subject to penalty.
If an employer is required to file and pay withholding tax by electronic means (see statements above), the employer is also required to file Form RI-W3 by electronic means or be subject to penalty.
*NOTE: These forms will normally be mailed to each employer in advance of the required reporting date. However, employers that are required to file electronically, employers that file electronically, and employers that use a payroll company will not receive any forms. If forms are not received in due course, please write directly to the Rhode Island Division of Taxation - One Capitol Hill - Providence, Rhode Island 02908-5800.

1. INTRODUCTION:
Rhode Island, like the Federal Government, has a pay-as-you-earn income tax system. Under that system, employers are required to withhold a portion of their employees' wages and to periodically remit those withheld funds to the Division of Taxation. On or before April 15th each employee computes his Rhode Island income tax liability of the prior year. If the taxes withheld from his wages are less than his liability, he pays the balance to the Division; if greater, he is entitled to a refund from the state.

# 2. REGISTRATION FOR WITHHOLDING PURPOSES:

The Employer's Identification Number to be used for Rhode Island income tax purposes will be the identification number currently issued to an employer by the United States Internal Revenue Service.

3. EMPLOYEES FROM WHOSE WAGES RHODE ISLAND TAXES MUST BE WITHHELD:
A Rhode Island employer must withhold Rhode Island income tax from the wages of an employee if:
(1) The employee's wages are subject to federal income tax withholding, and
(2) Any part of the wages were for services performed in Rhode Island.
(3) Even though the employee's wages are NOT subject to federal income tax withholding, the employer may withhold if the employee so requests.
Please note that Rhode Island employers are required to withhold Rhode Island income taxes from employees who are residents of other states, insofar as such employees receive compensation by reason of employment in Rhode Island. In addition, employers in other states may wish to withhold Rhode Island income taxes from wages of their Rhode Island employees as a convenience to those employees. Information regarding such withholding should be requested from the Rhode Island Division of Taxation, One Capitol Hill, Providence, RI 02908-5800.

4. COMPUTING THE AMOUNT OF RHODE ISLAND TAXES TO BE WITHHELD FROM AN EMPLOYEE:
For the convenience of employers, the attached tables show the amount of Rhode Island taxes to be withheld from employees earning various amounts on a weekly, bi-weekly, semimonthly, monthly and daily or miscellaneous basis. For those employers who find it more convenient to determine withholding by the percentage method, the tables on pages 9 and 10 of this booklet should be used. If supplemental wages, such as bonuses, commission, overtime pay and back pay are paid with regular wages, the income tax to be withheld must be determined as if the total were a single wage payment for the regular payroll period. However, if the supplemental wages are paid separately, the employer may add the supplemental wages to the regular wages paid to the employee for the last preceding payroll period, determine the amount to be withheld as if the aggregate amount were a single payment, subtract the tax withheld for the last preceding payroll period and withhold the remaining tax from the supplemental wage payment.

# 5. EXEMPTION FORMS (FORM W-4):

Effective January 1, 2020, employers must have employees complete Form RI W-4 showing the number of dependents or other personal exemptions claimed. The employer can no longer rely on federal withholding exemption certificates (Federal Form W-4) in computing both the Federal withholding and the Rhode Island withholding for employees. Employers must require employees complete Form RI W-4 in addition to Federal Form W-4. Employees electing additional federal withholding may also elect additional Rhode Island withholding by adjusting Form RI W-4. Form RI W-4, which the employer is required to keep on file, should be completed by the employee at the beginning of his employment or if he would like to adjust the current amount of Rhode Island taxes being withheld from his pay. Employers should also have employees complete Form RI W-4 if the employee does not already have one on file.

# 6. REPORTING RHODE ISLAND TAX WITHHELD:

Employers must report and remit to the Division of Taxation the Rhode Island income taxes they have withheld on the following basis:
WEEKLY - If the employer withholds $600 or more for a calendar month from employees' wages, the employer must remit such withheld taxes on a weekly basis. The payment is due on the next banking day following the end of the week. The pay- ment due date is generally a Monday unless Monday is a banking holiday or state holiday. In the case of the payment due date falling on a banking holiday or state holiday, the payment due date moves to the Tuesday.
See the Withholding Tax Payment Calendar near the end of this booklet for specific due dates.
The term "weekly basis" means the week that begins on Sunday and ends on Saturday. Consecutive returns for each weekly period accounting for all tax withheld during the year must be filed.
Payment MUST be made via electronic means. Use tax type code "01102" when making an EFT Credit payment.
If no tax was withheld during a particular weekly period, a return for such period is not required to be filed.
Change from a weekly return to a less frequent basis will be permitted only at the beginning of a calendar year.
MONTHLY - If the employer withholds $50 or more but less than $600 for any calendar month from employees' wages, the employer must report and remit such withheld taxes on a monthly basis. However, if the employer withholds $200 or more but less than $600 for any calendar month, the employer is required to report and remit such withheld taxes via electronic means on a monthly basis. [If withholding is $600 or more per calendar month, the employer must remit WEEKLY via electronic means.] In addition, an employer that operates as a business whose combined annual liability for the entity for all taxes administered by the RI Division of Taxation is equal to or exceeds $5,000; or operated as a business whose annual gross income for the entity is over $100,000, is required to report and remit such withheld taxes via electronic means or be penalized.

# Filing and payment of withholding taxes must be via electronic means.

Use tax type code "01103" when making an EFT Credit payment.
For non-quarter ending months, Form WTM (941M) must accompany the payment. Both the return and payment are due within 20 days after the close of the month. Consecutive returns for each calendar month accounting for all tax withheld during the year must be filed by an employer required to report monthly. If no tax was withheld during a particular month, a return for such period is not required to be filed.
Returns for the months of March, June, September and December should be filed on or before the last day of the following month using Form RI-941. If no tax was withheld during a quarter-ending month, Form RI-941 must still be filed in order to reconcile the months for the quarter.
See the Withholding Tax Payment Calendar near the end of this booklet for specific due dates.
Change from a monthly return to a less frequent filing basis will be permitted only at the beginning of a calendar year. If the amount reaches or exceeds $600 the employer must begin to file weekly in accordance with the instructions above.

# Withholding of $50 or more but less than $200 for any calendar month from employees' wages:

Filing and payment of withholding taxes via electronic means is not required UNLESS the employer operates as a business whose combined annual liability for the entity for all taxes administered by the RI Division of Taxation is equal to or exceeds $5,000; or operated as a business whose annual gross income for the entity is over $100,000, Use tax type code "01103" when making an EFT Credit payment.
For non-quarter ending months, Form WTM (941M) must accompany the payment. Both the return and payment are due within 20 days after the close of the month. Consecutive returns for each calendar month accounting for all tax withheld during the year must be filed by an employer required to report monthly. If no tax was withheld during a particular month, a return for such period is not required to be filed.
Returns for the months of March, June, September and December should be filed on or before the last day of the following month using Form RI-941. If no tax was withheld during a quarter-ending month, Form RI-941 must still be filed in order to reconcile the months for the quarter.
See the Withholding Tax Payment Calendar near the end of this booklet for specific due dates.
Change from a monthly return to a less frequent filing basis will be permitted only at the beginning of a calendar year. If the amount reaches or exceeds $600 the employer must begin to file weekly in accordance with the instructions above.
QUARTERLY - If the employer withholds less than $50 for any calendar month from employees' wages, the employer must report and remit such withheld taxes on a quarterly basis. Form RI-941 must accompany the payment. Both the return and payment are due on or before the last day of the month following the close of the quarter. Consecutive returns for each calendar quarter accounting for all tax withheld during the year must be filed by an employer required to report quarterly. If no tax was withheld during a particular quarter, a return for such period is still required to be filed in order to reconcile the quarter.
See the Withholding Tax Payment Calendar near the end of this booklet for specific due dates.
Filing and payment of withholding taxes via electronic means is not required UNLESS the employer operates as a business whose combined annual liability for the entity for all taxes administered by the RI Division of Taxation is equal to or exceeds $5,000; or operates as a business whose annual gross income for the entity is over $100,000.
Use tax type code "01104" when making an EFT Credit payment.
Change from a quarterly return to a less frequent filing basis will be permitted only at the beginning of a calendar year. If the amount withheld reaches or exceeds $50 the employer must begin to file monthly or weekly as required by the instructions above.

# 7. ERRORS IN REPORTING WITHHOLDING:

If an error has been made on a withholding return, the employer should make the necessary adjustment on a subsequent withholding return.

1. WAGE AND TAX STATEMENT FOR EACH EMPLOYEE (FEDERAL OPTIONAL FORM W-2):

Compliance with federal requirements as to furnishing W-2 forms to employees will satisfy state requirements. Please be sure to use the six part optional federal form, or a form which has been approved by the Rhode Island Division of Taxation.

# 9. QUARTERLY RECONCILIATION - FORM RI-941:

On or before the last day of the month following the end of each quarter, or at the termination of business, employers must file a Rhode Island quarterly reconciliation return showing the reconciliation of income tax withheld with all individual wage and tax statements. The total income tax withheld as shown on the reconciliation return, should equal the total payments made to the Rhode Island Division of Taxation for the quarter.
This Quarterly Reconciliation Form RI-941 is the same form used by employers who file and pay withholding on a quarterly basis. These filers will only need to file one return - Form RI-941 - each quarter.

# 10. RECONCILIATION OF ALL RETURNS - FORM RI W-3:

On or before January 31 of each year, or at the termination of business, employers must file a Rhode Island reconciliation return showing the reconciliation of all weekly, monthly or quarterly returns of income tax withheld with all individual wage and tax statements. The total income tax withheld as shown on the reconciliation return, should equal the total payments made to the Rhode Island Division of Taxation for the year and should also equal the total amount of Rhode Island tax withheld on all Forms W-2 furnished to employees.

# 11. FORMS:

Insofar as possible, forms (other than forms W-2 and W-4) necessary for compliance with the withholding provision of the Rhode Island Income Tax Law will be automatically mailed to employers prior to due dates. However, employers that are required to file via electronic means, that file electronically and that use a payroll company will not receive any forms. If you should be mailed forms, but fail to receive them, please contact the Rhode Island Division of Taxation - One Capitol Hill - Providence, RI 02908-5800.
You may also email Tax. Forms@tax.ri.gov or call (401) 574-8970. The Rhode Island Division of Taxation does not supply W-2 forms. These forms should be obtained from the U.S. Internal Revenue Service. Form RI W-4 can be found at the end of this booklet.

# 12. SUPPLEMENTAL WAGES:

Supplemental wages are compensation paid in addition to an employee's regular wages. They include, but are not limited to, bonuses, commissions, overtime pay, payments for accumulated sick leave, severance pay, awards, prizes, back pay and retroactive pay increases for current employees, and payments for nondeductible moving expenses. Other payments subject to the supplemental wage rules include taxable fringe benefits and expense allowances paid under a nonaccountable plan. How you withhold on supplemental payments depends on whether the supplemental payment is identified as a separate payment from regular wages (see part 4 for details). The Supplemental withholding rate is 5.99%.

# 13. CONVENIENCE WITHHOLDING:

An employer may withhold Rhode Island personal income tax at the request of the employee even though the employee's wages are not subject to Federal income tax withholding. Additionally, employers in other states may wish to withhold Rhode Island income taxes from wages of their Rhode Island employees as a convenience to these employees. Additional information regarding convenience withholding may be requested from the Division.

# 14. INFORMATION:

Should specific questions arise which are not covered by these instructions, call: (401) 574-8829, write to:
Rhode Island Division of Taxation - One Capitol Hill - Providence, RI 02908-5800, or contact Tax. Assist@tax.ri.gov .

# JANUARY 1, 2024

Employers, in computing the amount of income tax to be withheld from a payment of wages to an employee, must make a percentage computation based upon the following withholding exemption amounts and appropriate rate table.

# WITHHOLDING TAX EXEMPTION AMOUNTS

Amount of one
Payroll Period withholding
HOWEVER, IF: exemption
$
19.23
Weekly……………………………
Amount of one withholding exemption
$
5,281.73 $0.00
Weekly wages are more than………
$
38.46
Biweekly…………………………
……
$
10,563.46 $0.00
Biweekly wages are more than………
$
41.67
Semimonthly……………………
……
$0.00
$
11,443.75
Semimonthly wages are more than…
$
83.33
Monthly……………………………
……
$
22,887.50 $0.00
Monthly wages are more than………
$
250.00
Quarterly…………………………
……
$
68,662.50 $0.00
Quarterly wages are more than……
$
500.00
Semiannually……………………
……
$
137,325.00 $0.00
Semiannual wages are more than…
$
1,000.00
Annually…………………………
……
$
274,650.00 $0.00
Annual wages are more than………
$
3.85
Daily or Miscellaneous…………
……
$0.00
$
1,056.35
Daily wages are more than…………
The steps in computing the income tax to be withheld are as follows:
……
(1.) Multiply the amount of one withholding exemption (see table above) by the number of exemptions and allowances claimed by the employee;
(2.) Subtract the amount from the employee's wages;
(3.) Determine the amount to be withheld from the appropriate rate table on the following pages.

# EXAMPLE

An unmarried employee has a weekly payroll period, for which he is paid $2,195.00, and has in effect Form RI W-4 claiming one (1) exemption. His employer computes the income tax to be withheld as follows:
(1.) Total wage payment
(2.) Amount of one (1) exemption
(3.) Number of exemptions claimed on Form RI W-4
(4.) Line 2 multiplied by line 3
(5.) Amount subject to withholding (line 1 less line 4 )
(6.) Tax to be withheld
@ 3.75%
$
1,489.00
(6a.) Tax on
$
686.77 @ 4.75%
(6b.) Tax on remainder:
(7.) Total to be withheld
$
2,195.00
$
19.23
$
19.23
$
2,175.77
$
55.84
$
32.62
$
88.46

# TABLE 1 - WEEKLY PAYROLL PERIOD

# TABLE 5 - QUARTERLY PAYROLL PERIOD

# TABLE 2 - BIWEEKLY PAYROLL PERIOD

# TABLE 6 - SEMIANNUAL PAYROLL PERIOD

# TABLE 3 - SEMIMONTHLY PAYROLL PERIOD

# TABLE 4 - MONTHLY PAYROLL PERIOD

# TABLE 8 - DAILY OR MISC PAYROLL PERIOD

# WEEKLY Payroll Period

# WEEKLY Payroll Period

# BIWEEKLY Payroll Period

# BIWEEKLY Payroll Period

# SEMIMONTHLY Payroll Period

# SEMIMONTHLY Payroll Period

# MONTHLY Payroll Period

# MONTHLY Payroll Period