CRANSTON – Employers will pay slightly less in 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 2024 will remain at Schedule G in the range of 1.1% and 9.7%, same as 2023, with a 0.21% Job Development Assessment reduction. The unemployment insurance tax schedule was determined using a statutory formula based on the balance of the state’s employment security fund.
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The new employer rate will be 1% in 2024, a decrease from 1.09% from 2023, which also includes the 0.21% Job Development Assessment reduction.
The 2024 UI Taxable Wage Base for most employers will be $29,200 in 2024, a 3% increase from 2023. For employers at the highest tax rate, the UI taxable wage base is set at $1,500 higher and will be $30,700 in 2024. The UI Taxable Wages Base is set at 46.5 percent of the average annual wage of workers employed by employers subject to the contribution provisions of the Employment Security Act.
Also, the Temporary Disability Insurance taxable wage base for most Rhode Island companies will be $29,200, an increase from $28,200 in 2023. For employers at the highest tax rate, the taxable wage will be set at $20,700. The DLT said the Temporary Disability Insurance contribution rate will be 1.2% for 2024, a slight increase from 1.1% in 2023.
The UI taxable wage base is set at 46.5% of the average annual wage of workers at taxable employers.
The annual earnings needed by an individual to qualify for the maximum weekly benefit TDI benefit rate will be $87,000 in 2024, an increase from $84,000 in 2023. The maximum TDI contribution rate will in 2024 be $1,044 in 2024, an increase of $120, or $2.31 a week, from the maximum contribution of $924 in 2023.
(UPDATE: Clarifies tax schedule and tax rate for 2024)
