CRANSTON – Employers will pay slightly less is state payroll taxes to support Rhode Island’s unemployment insurance program next year, the R.I. Department of Labor and Training announced on Wednesday.
The unemployment insurance tax rate for 2023 will be in the range of 1.1% and 9.7%, a decrease from 1.2% and 9.8% from 2022.
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The rate for new employers will be 1.09% for 2023, a decrease from the new employer rate of 1.19% in 2022.
These rates include a 0.21% Job Development Assessment.
The unemployment insurance tax schedule was determined using a statutory formula based on the balance of the state’s employment security fund. The 2023 schedule change is due in part to an infusion of $100 million in American Rescue Plan funds approved by the General Assembly in the state’s fiscal 2023 budget.
Also, the Temporary Disability Insurance taxable wage base for most Rhode Island companies will be $28,200, an increase from $24,600 in 2022. For employers at the highest tax rate, the taxable wage will be set at $29,700. The DLT said the Temporary Disability Insurance contribution rate will remain 1.1% for 2023.
The UI taxable wage base is set at 46.5% of the average annual wage of workers at taxable employers. The maximum weekly benefit rate will be $84,000 in 2023, an increase from $81,500 in 2022.
(Update: Corrects Temporary Disability Insurance taxable wage base in 6th paragraph)
