Paycheck Calculator Rhode Island - RI

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Rhode Island - RI Paycheck Calculator: Hourly and Salary

Rhode Island, a state known for Seaside Colonial towns and sandy shores, is located in the New England region of the United States. It is the smallest one among 50 states in terms of area, and the seventh least populous, yet the second most densely populated state of the U.S.

Rhode Island is a neighbor of Massachusetts on the north and east, Connecticut on the west, and the Atlantic Ocean on the south. Providence is the most populous, largest, and the Capital City of Rhode Island, while Greater Providence is known as the largest metro.

Mulling over to take an intimidating decision of moving to Rhode Island and start a new life, with a better job or business idea? Then you must read our one-of-its-kinds "moving to Rhode Island" Guide. This guide is written down by our travel and finance experts, and it covers the following topics:

  • Things you must know before moving to Rhode Island
  • Rhode Island Payroll Facts
  • How to Calculate Paycheck in Rhode Island? A guide to assist job seekers in comparing several job offers in terms of take-home pay and in choosing the best among them. Besides, it will also help employers to calculate employment costs for their business as well as help them to figure paycheck for each of their employees using our Rhode Island Paycheck Calculator.
  • Federal and Rhode Island Payroll Laws
  • Frequently Asked Questions

We hope this guide would make your relocation and payroll decisions easier as a job seeker, entrepreneur, employers, employees, or retiree. So let's get started!


Things you must know before moving to Rhode Island

Mulling over to relocate to Rhode Island? Here are few factors you need to know before you pack your bags and head to the State of Rhode Island and Providence Plantations (it's an official name!):

Cost of Living:

Living cost in Rhode Island is significantly higher than the national average, thanks to its expensive cost of housing. The cost of living index in the state is 110.6 points, while the national average index is 100 points. Along with housing, cost of utilities, grocery, and transportation, miscellaneous expenses are also slightly higher than most of the states.

Cost of Housing:

Buying a house in Rhode Island would cost you slightly higher than the national average, as the median home value in the state is $285,200, while the national median home value is $231,200. However, if you'd just prefer to rent a home, the median rental cost of a house with two bedrooms is around $2,000/month.

The higher cost of housing is due to higher demand in the state's capital of Providence, while other cities like Newport, Pawtucket, and Warwick are relatively cheaper. So it depends on your ability to choose a city and your budget to get a house of your dreams.

Business and Job Opportunities:

The home to Fortune 500 companies like CVS Caremark and Textron, Rhode Island has a good economy, reasonable business, and job opportunities for its residents. Some of the fastest-growing job in the state includes software developer, information technology manager, welder, and marketer. Moreover, some of the highest paying jobs here include CEO, surgeon, anesthesiologist, compensation/benefits manager, and dentist.

Health services followed by tourism and manufacturing industries are among the flourishing industries here, creating multiple opportunities for entrepreneurs and job seekers, despite the current unemployment rate of 4.5% (according to the Bureau of Labor Statistics) and minimum wage rate of $10.10/hour.

Weather:

The state experiences a humid continental climate, with perfectly warm summers, but pretty cold and snowy winters. Sometimes you may encounter a snowstorm here that could make your car burry in snow for a week in no time.

Outdoor Activities:

Although Rhode Island has quite a small area, it still has tons of recreational opportunities and natural beauties. And all them within a few minutes' drives. The state houses stunning beaches, rich history, and an amazing city life. Moreover, there are numerous state's main attractions, including Mr. Potato Head Statues, WaterFire Arts Festival, Bellevue Avenue Historic District, and Green Animals Topiary Garden.

Besides tourist places, the Ocean State also offers some of the unique and delicious foods, which you can enjoy with your friends and family including Awful Awful iced drink, "New York System wiener"; a hotdog with a unique twist, coffee milk, "quahog"; a hard clam, Del's frozen lemonade, party pizzas, Johnnycakes, and stuffies.

Education:

On top of the factors mentioned above, Rhode State is also known for its quality education. Some of the well-known schools, colleges, and universities include Brown University, Johnson & Wales Culinary arts schools, Rhode Island School of Design, University of Rhode Island, and Providence College.


Pros and Cons:

Like every other place across the globe, Rhode Island also has pros and cons to living. Few of them are as follow:

Pros:
  • The state has gone green by utilizing green energy generated from solar and wind technology
  • All four seasons
  • Everything in the Island is less than an hour drive
  • Fantastic variety and taste of food
  • Best Airport
  • Quality Education
  • Fantastic place for beach lovers and water-based activities like sailing, fishing, and waterskiing
  • Beautiful landscape
  • Rich history
  • City life
Cons:
  • High property taxes
  • Expensive housing
  • The high cost of living
  • Colder winters with chances of a snowstorm
  • Densely populated
  • One of the worst drivers

Rhode Island Payroll Facts:

  • Employers of Rhode Island withhold Federal Income tax from their employee's paycheck at the rate ranging between 10% and 37%, divided into seven tax brackets, dependent on filing status and income level.
  • Employers also withhold half of FICA tax from employee's paycheck and fund equal half of each employee themselves. These FICA tax comprise 12.4% of Social Security tax until the employee's taxable wage reaches total earnings of $137,700 for 2020 and 2.9% of Medicare Tax until the employee's taxable wage reaches total earnings of $200,000 for 2020. However, the employee is also charged with additional Medicare surtax if their annual wages exceed $200,000 threshold.
  • Employers having their business in Rhode Island, withhold State Income Tax from their employee's paycheck at progressive rates ranging from 75% to 5.99%, classified in three tax brackets according to income level, and regardless of filing status. Moreover, Supplemental wages and bonuses are charged at a flat rate of 5.99%.
  • No city or county in Rhode Island levies Local Income Tax.
  • Rhode Island's employers pay FUTA Taxes at the rate of 6% of the first $7,000 of taxable income for each employee in a year. Moreover, they also pay State Unemployment Insurance (SUI) tax at the rate ranging between 0.9% and 9.4% on the first $24,000 in wages paid to each employee in a calendar year. However, an employer who pays SUI tax on time and full are allowed to claim 90% of the FUTA tax refund.
  • Employers of Ocean State also pay 0.21% of the first $24,000 of wages per employee a year as Job Development Fund.
  • Employees of Rhode Island pay State Disability Insurance Tax at 1.3% of annual income up to $72,300 (for 2020).
  • The Federal Minimum Wage for all non-exempted workers is $7.25 per hour, while the State Minimum wage is $10.50 per hour. Moreover, the State's Cash Minimum wage rate for Tipped Employees is $3.89, with a maximum tip credit of $6.61.
  • Employees, unless or otherwise exempted, also receive overtime at the rate of 1½ times their regular hourly rate for all hours worked over 40 hours in a workweek.
  • Rhode Island does not have any reciprocal agreements with another state(s), so employees working in Rhode Island are required to pay income taxes there.
  • The living wage for a single adult in Rhode Island is $12.81, whereas for a couple (one working) with two children is $26.79, according to the Massachusetts Institute of Technology.
  • The average annual salary for a male working in Rhode Island is $70,382, and for females, it is $53,056, according to io.
  • The median household income for Rhode Island residents is $63,296, as reported by the U.S. Census Bureau.

How to Calculate Paycheck in Rhode Island?

As we are done with relocation to Rhode Island and its payroll facts, now it's time to calculate paycheck.


Step 1 - Calculating Gross Pay:

The very first step to calculating the paycheck amount is to determine Gross Pay. It is a wage that an employee earned in the last pay period.

Gross Pay is calculated differently for both hourly and salary-based employees, which is discussed in detail as follow:


Gross Pay for Hourly Employee

Hourly Employees are paid at a mutually agreed pay rate for each hour they work in a pay period. Usually, Pay periods for Hourly employees are Hourly, Daily, Weekly, and Bi-Weekly. However, the Federal, State, and Local Wage law requires the employers to set the pay rate equals to or more than the defined Minimum Wage Law for the non-exempted employees.

Hourly employees are also entitled to receive overtime, for each excess hour worked after regular hours in a workday or a workweek. Remember, like Minimum wage, the employers are also required to follow Overtime wage law provided by the federal, state, and local authorities.


Note: All the relevant laws are discussed in detail ahead.

To calculate gross wage for an hourly employee:

  1. Calculate total hours worked in a Pay Period using the data from Timesheet or Timecard.
  2. Multiply Total Hours worked with the Hourly Rate (Pay Rate).
  3. Add overtime hours (if any) worked by the employee.

Quick Tip: You can also use our Timecard with overtime Calculator to calculate Gross Wage for Hourly Employee instantly.

Gross Pay for Salaried Employee

Salaried Employees are paid at the flat amount rather than on an hourly basis. The amount is usually mutually agreed as an Annual Salary, which is then paid in Semi-monthly or Monthly Pay periods.

Salaried employees are mostly exempted from overtime law. However, their salaries must be according to Federal and State Minimum Wage law.

To calculate Gross Pay for Salaried Employees:

  • Divide the "employee's salary" by "number of pay periods." For example: If the employee's annual salary is $25000 and is paid on a semi-monthly pay period, then the employee's Gross Pay would be: $25000 / 24 = $1042.

Don't forget that Supplemental Wages like Bonuses, commissions, tips, paid leaves, fringe benefits, or other taxable wages earned by the employee must be added into the Gross wages.


Step 2 – Subtracting Pre-Tax Deductions (If Any):

Once you are done with Gross Wages, it's time to subtract any Pre-Tax deductions from the gross wage to get taxable wages as Pre-tax deductions are not taxable for federal payroll taxes.

Pre-tax deductions are offered to the employees as benefits like fringe benefits, HSA plans, etc., to reduce their taxable income, hence, increasing their take-home pay amount. Remember, not all benefits are exempted from taxes, so choose the pre-tax deductions wisely.

Some of the common pre-tax deductible benefits are:

  • FSA - Flexible Spending Accounts
  • HSA - Health Savings Accounts
  • Retirement savings accounts like a traditional 401(k)
  • Some of the Fringe Benefits
  • health insurance
  • accident insurance
  • dental and vision insurance
  • Commuter Benefits
  • Short-Term Disability

Note: Pre-Tax deduction rate, contribution limits, special tax withholding rules change from year to year, according to inflation and costs of living by the federal government. Therefore, you must keep yourself updated with all rates before making any deductions.

Many Taxpayers find it hard to itemize their deductions to calculate taxable wages, for which they go for standard deductions, that varies according to the filing status, as shown in the table below:

All Filers(Updated Dec 2019)
Filing Status Standard Deduction Amount
Single Filers $12,200
Married, Filing Jointly $24,400
Married, Filing Separately $12,200
Head of Household $18,350

Step 3 – Calculate and Subtract Federal Taxes:

Once you have determined the taxable wages, it's time to deduct Federal Income taxes for the Taxable wages.

IRS requires the employers to withhold federal income tax from the employee's paycheck, according to the details provided by the employee on Form W-4. The employee fills this form at the start of the job. The form includes all the necessary information, including income, number of allowances to claim, number of dependents, amount of additional taxes to deduct, and much more.

The employees are required to keep their Form W-4 up to date with all their current information, especially marriage, divorce, or child's birth.


The federal income tax is charged according to the tax brackets in which the taxpayer's income falls. The latest income tax brackets and rates are as follow:

Single Filers
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Married, Filing Jointly
Taxable Income Rate
$0 - $19,400 10%
$19,400 - $78,950 12%
$78,950 - $168,400 22%
$168,400 - $321,450 24%
$321,450 - $408,200 32%
$408,200 - $612,350 35%
$612,350+ 37%

Married, Filing Separately
Taxable Income Rate
$0 - $9,700 10%
$9,700 - $39,475 12%
$39,475 - $84,200 22%
$84,200 - $160,725 24%
$160,725 - $204,100 32%
$204,100 - $306,175 35%
$306,175+ 37%

Head of Household
Taxable Income Rate
$0 - $13,850 10%
$13,850 - $52,850 12%
$52,850 - $84,200 22%
$84,200 - $160,700 24%
$160,700 - $204,100 32%
$204,100 - $510,300 35%
$510,300+ 37%

Step 4 – Deduct FICA Taxes:

Besides, Federal Income Tax, the IRS also requires the employer to withhold FICA tax (15.3%) for the employee's paycheck and also requires the employer to pay an equal amount for each employee.

Federal Insurance Contributions Act (FICA) Taxes comprises of two types of taxes which are as follow:


  1. Social Security:

A total of 12.4% of social security tax is charged from which 6.2% is withheld from the employee's gross, and the employer pays the matching 6.2%. However, Social Security is only charged on the maximum taxable earnings of $137,700 for 2020.


  1. Medicare:

A total of 2.9% of Medicare is charged, from which 1.45% is withheld from the employee's gross, and the employer pays the matching 1.45%. Unlike Social Security, there is no maximum table earning limit for this tax. However, an additional surtax of 0.9% is charged as Additional Medicare Surtax on the employees having income over the specified level along with filing status, which is as follow:

Income Over Filing Status
$250,000 Married Filing Jointly
$125,000 Married Filing Separately
$200,000 Single

Note: Employers are not required to pay an equal amount for Additional Medicare Surtax.

Step 5 – Payment of FUTA Taxes

IRS requires the employer to pay another tax, known as The Federal Unemployment Tax Act (FUTA) Tax. This tax is paid at the rate of 6% on the first $7000 earned by each employee in a year. However, the IRS doesn't require the employees to contribute to it.

The employers who pay State Unemployment Insurance (SUI) tax in full and on time are given relieving FUTA tax credit of up to 5.4%, which saves a whopping 90% from FUTA Tax.


Step 6 – Subtract Post-Tax Deductions (If any):

Post-tax deductions (after-tax deductions) is an amount the employer takes out from the employee's paycheck after taxes. Therefore, it does not affect taxable wages and the amount of tax payable.

Here are some of the types of post-tax deductions that employee may voluntarily choose:

  • Charitable contributions
  • Disability insurance
  • Garnishments
  • Specific Retirement Plans like Roth 401(k)
  • Life Insurance

Step 7 – Withhold State Payroll Taxes:

As you are done with Federal Payroll Taxes, now it's time to discuss State Payroll Taxes. The Rhode Island State charges State Income Tax and State Disability Insurance Tax on the employees. Moreover, employers are required to pay State Unemployment Insurance Tax along with the Job Development Fund.


State Income Tax:

Rhode Island follows a progressive income tax system, having three tax brackets dependent on income level and regardless of filing status and a rate ranging from 3.75% to 5.99%. Moreover, Supplemental Wages and Bonuses can be charged at a flat rate of 5.99%.

The employer withholds this tax from the employee's paycheck according to the details provided by the employee in the Form RI-W4. This form is filled by the employee while joining the job. Employees are required to keep the form updated with any significant life events like marriage, child's birth, and divorce.

All Filers
Rhode Island Taxable Income Rate
$0 - $64,050 3.75%
$64,050 - $145,600 4.75%
$145,600+ 5.99%

State Disability Insurance Tax

Rhode Island State provides temporary funding for non-work related injury or illness by State Disability Insurance. The employees fund this program at a rate of 1.3% of annual income up to $72,300.


State Unemployment Insurance (SUI) Tax

The State Unemployment Insurance (SUI) Tax is an employer-funded program that provides temporary income to unemployed workers who have lost their job without fault of their own.

The state doesn't charge in Rhode Island State Disability Insurance (SDI) tax on employers. However, it does require the employers to pay Rhode Island State Unemployment Insurance (SUI) tax, at the rate ranging from 0.9% to 9.4% on a first $24,000 earned in wages by each employee in a year. However, new employers are given relief as they only have to pay a flat rate of 1.04%.


Note: SUI Rates for Rhode Island Employers change with time. Therefore, you are required to keep a check on notices to make sure you have paid the right amount.

Job Development Fund

This tax is charged on employers for funding for training. The employers are required to pay 0.21% of the first $24,000 of wages per employee a year.


Step 8 – Withhold Local Payroll Taxes:

NO city or county in Rhode Island levies Local Income Tax


Step 9 – Calculate Pay Check:

Now that you are done with all payroll taxes and calculated the net take-home pay of an employee, it's time to cut the paycheck. Moreover, you, as an employer, must pay your portion of FICA tax along with FUTA and SUI tax in full and on time regularly.


Federal and Rhode Island Payroll Laws:

  • The state law requires employers to pay their employees every week, except for those who are being paid on a fixed biweekly, semi-monthly, monthly, or yearly rate. Moreover, all wages must be paid on regular paydays, which must be within nine (9) days of the end of the pay period.
  • Rhode Island's labor law requires employers to pay at least the minimum wage rate of $10.50 / hour to their non-exempted employees. However, the following employees are exempted from this law:
    1. Full-time Student employees of age under 19, working for nonprofit educational, religious, librarial, or community service organizations can be paid at least a minimum wage rate of $9.45 per hour (90% of regular minimum wage rate).
    2. Youth Employees age 14 and 15 who don't work for more than 24 hours in a week can be paid at least a minimum wage rate of $7.88 per hour (75% of regular minimum).
    3. Workers employed in domestic service in or about voluntary service in charitable, educational, religious, or nonprofit organizations as well as a private home and federal service.
    4. Tipped Employees; who are allowed to be paid at least the cash minimum wage rate of $3.89, with the maximum tip credit of $6.61.
  • Employers of Rhode Island are required to pay overtime to their non-exempted workers at a rate of one and one-half (1 1/2) times the regular hourly rate at which the worker is employed for all hours worked over forty (40) hours in a workweek. Workers exempted from overtime law are:
    1. Bonafide executive, administrative and professional employees
    2. Outside salesmen
    3. An employee working in domestic service or in or about a private home;
    4. Federal Employee and a few more.
  • Employers of Ocean Island are not required to provide either paid or unpaid vacation benefits, jury duty leave, voting leave, and bereavement leave. However, employers are required to pay sick leaves to certain employees as well as the employees who are eligible under RI Parental & Family Medical Leave Act and the federal Family and Medical Leave Act or other federal laws. Moreover, employers are required to pay employees at 1½ times their regular rate on Sundays and legal holidays.
  • The labor law of Rhode Island requires the employers to provide 20 minutes lunch break for six-hours shift and 30 minutes lunch break for eight hours shift to their employees. However, healthcare facilities and employers (having three or fewer employees) on-site are exempted from this law.
Also Check: Rhode Island Sales and Reverse Sales tax Calculator to Calculate the amount of tax included in a gross price as well as the amount you should add to a net price.

FAQs

Answer: Following are the taxes taken out of employee's paycheck while working in Rhode Island – RI:

  • Federal Income Tax: This tax is withheld at the rate of 10% to 37%, distributed in seven tax brackets dependent on filing status and income level.
  • FICA – Social Security: This tax is charged at the rate of 6.2% of employee's taxable wages reach total earnings of $137,700 for 2020.
  • FICA – Medicare: This tax is charged at the rate of 1.45% until the employee's taxable wage reaches total earnings of $200,000 for 2020.
  • FICA – Additional Medicare Surtax: It is charged at the rate of 0.9% if the employee's taxable wage exceeds the threshold of $200,000 for 2020.
  • State Income Tax: This tax at progressive rates ranging from 75% to 5.99%, classified in three tax brackets according to income level, and regardless of filing status. Moreover, Supplemental wages and bonuses are charged at a flat rate of 5.99%.
  • State Disability Insurance Tax: This tax is charged at the rate of 1.3% of annual income up to $72,300 (for 2020).

Answer: Rhode Island's Minimum wage rate for non-exempted employees is $10.50 per hour. Moreover, the State's Cash Minimum wage rate for Tipped Employees is $3.89, with a maximum tip credit of $6.61.

Answer: The state income tax in Rhode Island is charged at progressive rates ranging from 3.75% to 5.99%, classified in three tax brackets according to income level, and regardless of filing status. Moreover, Supplemental wages and bonuses are charged at a flat rate of 5.99%.
Following are the tax brackets:

  • 75% on the first $64,050 of taxable income.
  • 75% on taxable income between $$64,051 and $145,600.
  • 99% on taxable income of $145,601 and above.
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