Payroll Rhode Island, Unique Aspects of Rhode Island Payroll Law and Practice

The Rhode Island State Agency that overseeswithin 14 days of the hiring or rehiring.
the collection and reporting of State income taxesThe information can be sent as a W4 or
deducted from payroll checks is:Department ofequivalent by mail, fax or electronically.
AdministrationThere is a $20.00 penalty for a late report and
Division of Taxation$500 for conspiracy in Rhode Island.The Rhode
One Capitol HillIsland new hire-reporting agency can be reached
Providence, RI 02908-5800at 888-870-6461 or on the web at Island does
(401) 222-3911not allow compulsory direct depositRhode Island
Island allows you to use the Federal W4 Form torequires the following information on an
calculate state income tax withholding.Not allemployee's pay stub:Gross and Net Earnings
states allow salary reductions made under Sectionstraight time and overtime pay
125 cafeteria plans or 401(k) to be treated in thehours worked (nonexempt employees)
same manner as the IRS code allows. In Rhodeitemized deductions (upon request of
Island cafeteria plans are not taxable for incomeemployee)Rhode Island requires that employee be
tax calculation; not taxable for unemploymentpaid weekly; except salaried employees paid at
insurance purposes. 401(k) plan deferrals are notbiweekly, semimonthly, monthly, or annual
taxable for income taxes; not taxable forrate.Rhode Island requires that the lag time
unemployment purposes.In Rhode Islandbetween the end of the pay period and the
supplemental wages are taxed at a 7% flatpayment of wages to the employee not exceed
rate.You must file your Rhode Island state W-2snine days.Rhode Island payroll law requires that
by magnetic media if you are have at least 25involuntarily terminated employees must be paid
employees and are required to file your federaltheir final pay by next regular payday; within 24
W-2s by magnetic media.The Rhode Island Statehours if employer closes down, moves, or
Unemployment Insurance Agency is:Departmentmerges. Voluntarily terminated employees must
of Labor and Trainingbe paid their final pay by the next regular
115 Pontiac Ave.payday.Deceased employee's wages of $150
Cranston, RI 02920must be paid to the surviving spouse, adult
(401) 243-9137children, parents, siblings, or person paying funeral
State of Rhode Island taxable wage base forexpenses (in that order).Escheat laws in Rhode
unemployment purposes is wages up toIsland require that unclaimed wages be paid over
$14,000.00.Rhode Island requires Magnetic mediato the state after one year.The employer is
reporting of quarterly wage reporting if thefurther required in Rhode Island to keep a record
employer has at least 200 employees that theyof the wages abandoned and turned over to the
are reporting that quarter and if at least 20state for a period of 7 years.Rhode Island payroll
clients.Unemployment records must be retained inlaw mandates no more than $3.86 may be used
Rhode Island for a minimum period of four years.as a tip credit.In Rhode Island the payroll laws
This information generally includes: name; socialcovering mandatory rest or meal breaks are only
security number; dates of hire, rehire andthat all employees must have 20-minute meal
termination; wages by period; payroll pay periodsperiod after 6 hours, with some exceptions.Rhode
and pay dates; date and circumstances ofIsland statute requires that wage and hour
termination.The Rhode Island State Agencyrecords be kept for a period of not less than
charged with enforcing the state wage and hourthree years. These records will normally consist of
laws is:Department of Labor and Trainingat least the information required under FLSA.The
Division of Labor StandardsRhode Island agency charged with enforcing Child
610 Manton Ave.Support Orders and laws is:Department of
Providence, RI 02909Administration
(401) 462-8550Division of Taxation-Child Support Enforcement
minimum wage in Rhode Island is $6.75 per77 Dorance St.
hour.The general provision in Rhode IslandProvidence, RI 02903
concerning paying overtime in a non-FLSA(401) 222-3845
covered employer is one and one half timesIsland has the following provisions for child
regular rate after 40-hour week.Rhode Islandsupport deductions:When to start Withholding? 1
State new hire reporting requirements are thatweek after service.
every employer must report every new hire andWhen to send Payment? Within 7 days of
rehire. The employer must report the federallyPayday.
required elements of:Employee's nameWhen to send Termination Notice? Within 10
health insurancedays of termination.
wage withholding addressMaximum Administrative Fee? $2 per payment.
Employee's addressWithholding Limits? Federal Rules under CCPA.
Employee's social security numberPlease note that this article is not updated for
Employer's namechanges that can and will happen from time to
Employers addresstime.Charles J. Read, CPA has been in the payroll,
Employer's Federal Employer Identificationaccounting and tax business for 30 years, the last
Number (EIN) This information must be reportedfifteen in private practice. Mr.