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Free Rhode Island payroll tax
calculator (and RI tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

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Updated: May 6, 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.

Federal payroll taxes for Rhode Island employers

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.

  • Calculate Gross Wages:
    • For all your hourly employees, multiply their hours worked by their pay rate (and don’t forget to pay the higher rate for any overtime hours worked).
    • For all your salaried employees, divide each employee’s annual salary by the number of pay periods your business has.
    • Bonuses, commissions, and tips are all part of gross wages as well.
  • Calculate Any Pre-Tax Deductions:
    • If your employees contribute to 401(k), FSA, HSA, or any other pre-tax withholding accounts, subtract their contributions from gross pay prior to applying payroll taxes.
  • Deduct (and Match) FICA Taxes:
    • Social Security Tax: Withhold 6.2% of each employee’s taxable wages up until they reach total earnings of $168,600 for 2024. Any earnings above $168,600 are exempt from Social Security Tax. As an employer, you will also need to pay this tax by matching your employees’ tax liability dollar-for-dollar.
    • Medicare Tax: Withhold 1.45% of each employee’s taxable wages up until they have reached total earnings of $200,000 for the year. You as the employer will also need to match this tax liability dollar-for-dollar. However, for salaries above $200,000, employees need to pay what’s called an Additional Medicare Tax. The rate for this additional tax is 0.9%, which makes the total 2.35%. Only the employee is responsible for paying the Additional Medicare Tax, not the employer.
  • Pay FUTA Unemployment Tax:
    • You will need to pay 6% of the first $7,000 of taxable income for each employee per year, which makes your maximum FUTA tax per employee per year $420.Note that if you pay state unemployment taxes in full and on time, you are eligible for a tax credit of up to 5.4%, making your FUTA tax rate effectively 0.6%. FUTA tax is the sole responsibility of the employer. Your employees are not responsible for paying this tax.
  • Deduct Federal Income Tax:
    • This is the biggest tax of them all. Federal income tax ranges from 0% to 37%, depending on the tax bracket that your employees are in. We won’t get into the nitty-gritty here, but you can find further withholding information through the IRS Publication 15-T.
  • Subtract Any Post-Tax Deductions:
    • Many of your employees won’t have post-tax deductions, but some of them could be responsible for paying court-ordered wage garnishments, like child support, etc. If so, you will need to withhold these deductions from their paychecks.

2024 Rhode Island state payroll taxes

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% and 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.

  • What you pay for:
    • Unemployment Insurance (UI) provides temporary payments to those who are unemployed against their own capabilities. Employers pay between 1.1% to 9.7% on the first $29,200 in wages paid to each employee in a calendar year. If you’re a new employer in 2024 (congratulations, by the way!), you pay 1.00% (which is a decrease from 1.09% from 2023).
    • Job Development Fund, which is funding for training. You are responsible for paying 0.21% of the first $29,200 of wages per employee a year.
  • What is withheld from employees:
    • State Disability Tax provides temporary funding for non-work related injury or illness. For 2024, the Temporary Disability Insurance (TDI) rate is at 1.2% of annual income up to $87,000.

Staying compliant

Did you know that almost all employers in the state must carry workers’ compensation? Learn more about who needs coverage, the benefits it provides, and how to get a policy in our employer’s guide to Rhode Island workers’ compensation.

Now write those paychecks

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.

Additional Rhode Island payroll tax resources

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. 

More helpful payroll calculators

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.

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