Key figures
Rhode Island payroll
2026, with sources
Withholding, UI and TDI
A Rhode Island employer withholds state income tax and files Form RI-941 for each quarter, due the last day of the month after the quarter ends; larger withholders pay on a faster schedule. It also registers with the Department of Labor and Training for unemployment insurance and Temporary Disability Insurance.
Unemployment insurance in 2026 is charged on the first $30,800 of each employee’s wages ($32,300 for employers at the highest rate). A new employer pays 1.00% plus the 0.21% Job Development Assessment, 1.21% in all, about $373 per employee earning the base.
Rhode Island was the first state with a disability insurance program and has had paid caregiver leave since 2014. TDI and Temporary Caregiver Insurance (TCI) are funded only by employees: 1.1% of the first $100,000 of wages in 2026, a maximum of $1,100, down from 1.3% in 2025. TCI pays up to eight weeks to bond with a new child or care for a seriously ill family member.
Wages, leave and paydays
Accrued vacation becomes wages on separation once the employee has completed at least one year of service, payable with the final paycheck. A startup that offers flexible time off without accrual avoids the question; one with a 15-day accrual policy owes it to anyone leaving after a year.
- Minimum wage: $16.00 an hour.
- Paid sick and safe leave: employers of 18+ in Rhode Island; 1 hour per 35 worked, up to 40 hours a year.
- Paydays: a regular payday within nine days of the end of the pay period; three paydays’ notice to change it.
- Final pay: next regular payday; within 24 hours if the employer closes, merges, sells or moves the business out of state.
Deadlines
- Last day of the month after the quarterQuarterly withholding returnForm RI-941
- QuarterlyUI and TDI/TCI contributions and wage report
The federal baseline
This page covers what Rhode Island adds. The federal rules underneath it apply here too.
Common questions
Who pays for Rhode Island TDI?
Your employees do, through payroll. Temporary Disability Insurance and Temporary Caregiver Insurance are funded entirely by employees: 1.1% of the first $100,000 of wages in 2026, a maximum of $1,100. The employer withholds and remits it with its quarterly DLT filings; there is no employer share.
When do we have to offer paid sick leave?
At 18 or more employees in Rhode Island. They accrue an hour of paid sick and safe leave for every 35 hours worked, up to 40 hours a year.
Payroll next door
- CTConnecticut payrollConnecticut payroll means a $27,000 wage base, CT Paid Leave at 0.5% from the first employee, weekly paydays by default, and paid sick leave reaching every employer in 2027.
- MAMassachusetts payrollMassachusetts payroll runs through DOR, DUA and DFML: 5% withholding, a $15,000 UI wage base at 2.42% for new employers, PFML at 0.88% (0.46% under 25), and final pay on the last day.
How Rhode Island compares
- No tax on wagesStates with no state income tax on wagesRhode Island: withholds state income tax. 9 of 51 states are on the list.
- Paid leave payrollStates with a paid leave or disability payroll programRhode Island: state paid leave or disability program. 16 of 51 states are on the list.
- Local payroll taxStates with city, county or district payroll taxesRhode Island: state-level only. 14 of 51 states are on the list.
Founder guides on this
- PeopleContractor or employee? Classification for startupsContractor or employee depends on control, not the contract. The IRS test, state rules, 1099s, payroll registration and the cost of getting it wrong.
- RunwayBurn rate and runway: how to calculate them correctlyGross burn, net burn and months of runway, done the way an investor checks them: from cash, averaged, and with the hires you’ve already committed to.
- EquityStock options, 409A valuations and vesting for startupsHow option strike prices are set by a 409A valuation, how vesting and the cliff work, and why ASC 718 makes every grant an expense on your P&L.
More of the Rhode Island guide
- AccountingAccounting and state tax in Rhode IslandCorporate tax, conformity to federal rules, apportionment and what it does to your books
- ReceivablesReceivables and sales tax in Rhode IslandSales tax registration, economic nexus, whether SaaS is taxable, and collecting from customers
- PayablesPayables and contractors in Rhode IslandPaying vendors and contractors: 1099 filing, use tax, contractor tests and withholding
- ComplianceCompliance and filings in Rhode IslandRegistering to do business, annual reports, franchise tax and the filing calendar
- AdvisoryAdvisory: credits and decisions in Rhode IslandCredits, incentives and the decisions that are cheaper to get right the first time
Sources
Checked against each agency’s own page on . Rates and thresholds change, usually on January 1.
General information for US companies, not tax, legal or accounting advice for yours. Rules and thresholds change; confirm the specifics with a CPA or the agency before you act on them.