Rhode Island Unemployment Insurance

Rhode Island's unemployment insurance is managed by the state’s Department of Labor and Training. This group helps set tax rates to raise funds for unemployment insurance benefits. For 2016, they set a taxable wage base of $22,000 per employee with a new employer rate of 2.27 percent. The tax rate for each employer is set at the beginning of the year.

Rhode Island unemployment insurance compensation is extended to individuals in the workforce throughout the state who meet eligibility requirements. Employers must pay taxes if they have paid one or more workers at least $1,000 during a calendar quarter.

These tax rates can be decreased by voluntary contribution of extra money into the unemployment insurance fund, an option which is also available to employers who are not subject to unemployment insurance.

Unemployment insurance benefits are considered taxable income and must be claimed on your state and federal income tax returns for the year. When you file an initial claim for benefits, you will be given the option to have taxes withheld from your weekly benefits.

If you’re unsure if you qualify for unemployment insurance benefits, file a claim to find out. There are no penalties for filing a claim that is denied, so long as all information used to file is true and accurate. This process will gauge your eligibility and help you receive benefits, should you qualify.