If you have employees, the following section describes additional requirements for your business. Once you hire an employee to work in your business, you take on several additional responsibilities. In Rhode Island, you will need to withhold certain payroll taxes, obtain workers' compensation insurance, comply with safety and health regulations, and know your rights and those of your employees under various labor laws. This section discusses these requirements in further detail and recommends publications and assistance programs offered by various agencies. Withholding Taxes As an employer, you are responsible for withholding a portion of an employee's gross compensation to cover his or her Rhode Island income tax liability.
Withholding occurs at the time wages are paid.
In addition to making payments, you must file withholding tax returns. The Taxation Division of the Rhode Island Department of Administration oversees state income tax withholdings. The Division of Taxation requests new employers to file registration form, Information Concerning Employer's Federal Identification Number, as part of the overall process of registering as an employer. The form enables the division to determine whether you should be remitting income tax withholdings quarterly, monthly, or quarter- monthly. Within three banking days of the calendar month 7th, 15th, 22nd, and the last day of the month.