CRANSTON – The R.I. Department of Labor and Training has announced the unemployment insurance and the temporary disability insurance taxable wage and employee contributions for 2013.
The 2013 unemployment insurance taxable wage base will be $20,200 for most Rhode Island employers, a $600 increase from 2012 figures, the DLT announced Tuesday. By law, the unemployment insurance taxable wage base represents 46.5 percent of the average annual wage in the Ocean State.
For those employers in the highest unemployment insurance tax rate group, the 2013 taxable wage base will be $21,700, $1,500 greater than the taxable wage base for all other employers.
The higher wage base, which affects roughly 18.2 percent of Rhode Island employers, is “intended to help offset the large drain these employers have on the Employment Security Trust Fund,” according to the DLT release. Last year, 43.4 percent of all unemployment insurance benefit payments were attributed to the top 18.2 percent of Rhode Island experience-rated employers.
“While the wage base limits the amount of wages that are taxable, tax rates for individual employers vary according to their experience with the unemployment insurance system,” said the release, adding that employers will be notified of their new individual tax rates in December.
In the same release, the DLT also announced that the employee contribution rate to the Temporary Disability Insurance Fund will remain unchanged at 1.2 percent.
In 2013, the TDI taxable wage base will be $61,400, an increase of $1,400 over 2012 figures. The maximum TDI contribution will be $726.80 in 2013, an increase of $16.80 from the 2012 maximum contribution.
Estate and Corporate Income Taxes are changing next year, and business owners and executives should know the details. The PBN Summit on November 6th will provide those details and more - including how much Obamacare's Employer Mandate could cost.
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