Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
Paying employees in Rhode Island
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Rhode Island, you must be registered with the Rhode Island Division of Taxation (for withholding and unemployment tax).
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Rhode Island Accounts Registration and Rate Info
Registering with the Rhode Island Division of Taxation (for withholding and unemployment tax):
You can register for both withholding income tax and unemployment tax through the Rhode Island Division of Taxation website. After registering, you’ll receive the following:
- Withholding Account ID: This will be your Federal Employer Identification Number (FEIN), which Justworks Payroll will use to file and pay your withholding taxes.
- Withholding Deposit Schedule: Assigned during registration based on your estimated payroll, this schedule determines the frequency of tax deposits.
- Rhode Island Employer Account Number (for unemployment): Typically issued 3–5 days after signing up.
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Unemployment Tax Rate (Experience Rate): Your Rhode Island unemployment tax rate, known as the Experience Rate, can be found on the "Notice of Tax Rate" from the Rhode Island Department of Labor & Training. Justworks Payroll automatically adds the Job Development Assessment (JDA) of 0.21% to this rate, so you do not need to include it when entering the rate.
- If you’re unsure of your tax rate, contact the agency at (401) 574-8700.
Already Registered? Locate This Information
Locate Your Rhode Island Withholding Account Number/ID:
Your Withholding Account ID is identical to your Federal Employer Identification Number (FEIN). For questions regarding your withholding account, contact the Division of Taxation at (401) 574-8829.
Locate Your Unemployment Account Number (Employer Account Number) and Experience Rate:
If your business has previously run payroll in Rhode Island, you can find your Employer Account Number by:
- Reviewing notices from the Division of Taxation, such as the Quarterly Wage Report (Form TX-17).
- Contacting the Division of Taxation at (401) 574-8700 for assistance with unemployment tax account information.
Your Rhode Island tax rate, known as the Experience Rate, is listed on the "Notice of Tax Rate" from the Rhode Island Department of Labor & Training. Justworks Payroll will automatically add the Job Development Assessment (JDA) of 0.21% to your rate, so you don’t need to include it yourself when entering the rate.
- If you're unsure of your tax rate, call the agency at (401) 574-8700.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid RI address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Rhode Island” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your Rhode Island Withholding Account ID, Unemployment Account Number (Employer Account Number) and Experience Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your RI tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your RI state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your RI state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.