Rhode Island State Income Tax Withholding
Reference Number: NFC-23-1681155010
Published: April 7, 2023
Effective: Pay Period 05, 2023
Summary
The income tax withholding for the State of Rhode Island includes the following changes:
- The annualized wage threshold where the annual exemption amount is eliminated has changed from $241,850 to $260,550.
- The income tax wage table has changed.
No action on the part of the employee or the personnel office is necessary.
Tax Formula
|
State Abbreviation: |
RI |
|
State Tax Withholding State Code: |
44 |
|
Acceptable Exemption Form: |
RI W-4 |
|
Basis for Withholding: |
State Exemptions |
|
Acceptable Exemption Data: |
0/Number of Exemptions |
|
TSP Deferred: |
Yes |
|
Special Coding: |
Determine the Total Number of Allowances Claimed field as follows: First Position - Enter 0 (zero). Second and Third Positions - Enter the number of exemptions claimed. |
|
Additional Information: |
All employees must now submit an RI W-4 form and withholding cannot be based on prior Federal W-4 forms. In the event an employee does not file a State withholding allowance certificate, then zero (00) exemptions will be used as the basis for withholding. |
Withholding Formula (Effective Pay Period 05, 2023)
- Subtract the nontaxable biweekly Thrift Savings Plan contributions from the gross biweekly wages.
- Subtract the nontaxable biweekly Federal Employees Health Benefits Plan payment(s) (includes dental and vision insurance program and Flexible Spending Account — health care and dependent care deductions) from the amount computed in step 1.
- Add the taxable biweekly fringe benefits (e.g., taxable life insurance) to the amount computed in step 2 to obtain the adjusted gross biweekly wages.
- Multiply the adjusted gross biweekly wages by the number of pay dates in the tax year to obtain the gross annual wages.
- Multiply the number of exemptions claimed by the exemption amount in the following table and subtract this result from the annualized gross pay to determine the annualized taxable wages:
|
Annualized Gross Pay: |
Exemption Amount: |
| Up to $260,550 | $1,000 |
| Greater than $260,550 | $0 |
- Apply the following tax rates to annualized taxable wages to determine the annual tax amount:
Taxable Wages
|
If the Amount of Taxable Income Is: |
The Amount of Tax Withholding Should Be: |
| Over $0 but not over $73,450 | 3.75% |
| Over $73,450 but not over $166,950 | $2,754.38 plus 4.75% of excess over $73,450 |
| Over $166,950 | $7,195.63 plus 5.99% of excess over $166,950 |
- Divide the annual Rhode Island tax withholdings calculated in step 6 by the number of pay dates in the tax year to obtain the biweekly Rhode Island tax withholding.
Resources
To view the updated tax formula, go to the HR and Payroll Clients page from the MyNFC drop-down menu on the National Finance Center (NFC) Home page. Select the Publications tab and select U.S. Income Tax Formulas from the Publications menu to launch the tax map. Select the desired State from the map provided for the formula.
Inquiries
For questions about NFC processing, authorized Servicing Personnel Office representatives should contact the NFC Contact Center at 1-855-NFC-4GOV (1-855-632-4468) or via the customer service portal at ServiceNow Portal for Federated Users and at ServiceNow Portal for Non-Federated Users.