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Updated: April 30, 2024
We designed a handy payroll calculator that’s build for Rhode Island employers. All you need to do is enter wages earned and W-4 allowances for each of your employees. Our calculator will calculate gross pay, take out deductions, and come up with the net pay you’ll need to write your employees’ paychecks.
First of all, we need to take care of Uncle Sam. You can use our Rhode Island payroll calculator to figure out your employees’ federal withholding as well as any additional taxes you are responsible for paying as the employer.
Here’s a quick overview of what you need to know when you’re calculating federal payroll taxes. If you would like to get into each calculation in detail, check out our step-by-step guide.
Now that we’re done with federal income taxes, let’s tackle Rhode Island state taxes. The state has a progressive income tax, broken down into three tax brackets, meaning the more money your employees make, the higher the income tax. The rates range from 3.75% to 5.99%.
The tax breakdown can be found on the Rhode Island Department of Revenue website.
Besides the state income tax, The Ocean State has three additional state payroll taxes administered by the Division of Taxation: 1) Unemployment Insurance, 2) Job Development Fund, and 3) Temporary Disability Tax. You’re responsible for paying the first two taxes, while the last tax should be withheld from each employee’s paycheck.
You’re almost at the finish line! You’ve checked “payroll taxes” off your to-do list so you can move onto the important things. Once each employee’s net pay is calculated (taking deductions and withholdings into consideration), you’re in the clear.
All you have to worry about is getting your employees paid on time as well as setting aside whatever you owe in FICA and unemployment taxes. Those numbers can add up quickly!
You will need to use Form 941 to file federal taxes quarterly, and Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. More information about employment tax due dates can be found here.
Our calculator is here to help, but of course, you can never learn enough, especially when it comes to payroll taxes. Here are some additional resources and contact information to help you run payroll:
Department of Labor and Training | Contact Information | Unemployment Insurance | Temporary Disability | Download the Rhode Island UI Tax Rates
Division of Taxation | Contact Information | Business Registration
These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.
Employers in Rhode Island can rely on the calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions (and feel confident when cutting paychecks). But every now and then, employers have scenarios that require a bit more number crunching. For instance, do you sometimes reward top performers with bonuses? Remember that Uncle Sam considers these payments to be supplemental wages and requires taxes to be withheld. Also, if you have workers who come and go, there may be times when you need to figure out what their final paycheck will be. So, if you can use a little more help managing the math, check out some of the calculators listed below.
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.