DLT releases 2017 rates for UI taxable wage, TDI tax rate

THE R.I. Department of Labor and Training announced 2017 rates for its two biggest income support programs.
THE R.I. Department of Labor and Training announced 2017 rates for its two biggest income support programs.

CRANSTON – The R.I. Department of Labor and Training said the unemployment insurance taxable wage will increase $400 and the Temporary Disability Insurance tax rate will remain at 1.2 percent in 2017.

The 2017 unemployment insurance taxable wage base will be $22,400 for most employers and $23,900 for those at the highest tax rate, which is 9.79 percent, the DLT said.

This is a $400 increase compared with 2016 for both groups of employers, according to the agency.

By law, the DLT said the unemployment insurance taxable wage base represents 46.5 percent of the average annual wage in Rhode Island, which is $48,152. It is adjusted for inflation each year by tying it to a percentage of the average annual wage.

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Unemployment insurance provides temporary income support to workers who have lost their jobs through no fault of their own and who have sufficient wages in the base period to meet the monetary requirements. It is funded entirely from state and federal unemployment insurance taxes paid by Rhode Island employers.

While the Temporary Disability Insurance tax rate will remain at 1.2 percent for 2017, the TDI taxable wage base will be $68,100, an increase of $1,800 compared with the 2016 taxable wage base of $66,300.

Paid by employees, not employers, TDI protects workers against wage loss due to a non-work related illness or injury, and through Temporary Caregiver Insurance provides up to four paid weeks to bond with a new child or to care for a seriously ill family member.

Through October, DLT handled 34,932 TDI applications, of which 8,202 were initial claims for TCI. To date in 2016, TDI payments have averaged $482 per week and TCI payments have averaged $532 per week.

DLT said that the employee contribution rate to the TDI Fund will hold at 1.2 percent in 2017. This rate has remained unchanged since 2012. The contribution rate is calculated by dividing total adjusted fund disbursements for a 12-month period by taxable wages for a 12-month period.

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