What You Need to Know about Rhode Island Payroll Tax Rates

Like the Federal Government, Rhode Island has a pay-as-you-earn income tax system. Under this system, employers are required to withhold a portion of employees’ wages, then periodically remit those funds to the state’s Division of Taxation. To do this you’ll need an Employer Identification Number and to understand your withholding liability.

This liability part is simple. Rhode Island employers must withhold Rhode Island income tax from employee wages if those wages are subject to federal income tax withholding and if any of the wages were for services in Rhode Island.

Unfortunately, the actual calculations are not as simple. The amount withheld from employees is based on how much is earned on a weekly, bi-weekly, semimonthly, monthly and daily, or miscellaneous basis. This is where the Rhode Island payroll tax rates tables come in. Or, if you use AMS Payroll, this is where you skip right to the calculation.


Figuring Out the Rhode Island Income Tax Withholding Table

Each year, Rhode Island publishes a handbook full of updated tax tables. The Rhode Island Employer’s Income Tax Withholding Tables booklet is a necessary tool for anyone needing the understand changes to income tax withholding. This resource includes a great Employers Tax Calendar, which indicates the forms necessary for the type of return your business needs to file. Further on in the handbook, employers will find updated tax tables for that year, split up by payroll period. Rhode Island payroll tax rates are subject to change each year, so the handbook is constantly updated.

If the tax tables look a little overwhelming to you, you’re not alone. It can be difficult to determine your exact tax liability using just this handbook, even if all the information is right in front of you. Luckily, we have a solution: a semi-automated payroll software.


How Advanced Micro Solutions Can Help

AMS Payroll is designed for small businesses like yours. It automatically calculates state, local, and federal taxes and prints or deposits wages accordingly. The information is then stored within the system for easy access during quarterly and end-of-year filing. To that end, state and federal tax tables are included and updated as needed, eliminating the need for employers to search the handbook for their exact tax rate. Put simply, this will save you the Rhode Island payroll tax rates headache.


When you purchase AMS Payroll, you’ll also have access to tax and wage help on-demand. This means that if you have a question about Rhode Island payroll tax rates, a member of our support staff can help.


More Features from AMS Payroll

AMS Payroll is more than a paycheck calculator. See below for a few of our favorite features.

  • Supports Federal payroll forms such as the 941, 940, 943, 944, and 1940 SchH
  • Prints more than 30 types of checks, individual or by date range
  • Facilitates direct deposit processing
  • Processes both “live” and after-the-fact payroll
  • Network and multiple PC installation included
  • Up to 40 user-defined fields for business-specific deductions and additions


AMS Payroll is easy to purchase and set up. If you have any questions about the software, please call our Sales and Information team at 800-536-1099.


Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.