Payroll and Benefits Guide - United States - Rhode Island

United States - Rhode Island
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Currency

United States Dollar (USD)

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Capital

Providence
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Employer Taxes

10.44% – 24.44%
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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

It is nicknamed “The Ocean State” due to its abundant coastline and maritime heritage.

The official state name is “State of Rhode Island and Providence Plantations.”

The Rhode Island Red chicken breed originated in the state and is known for its reddish-brown feathers and egg-laying capabilities.

The state motto is “Hope.”

The Touro Synagogue in Newport is the oldest synagogue in the United States.

Rhode Island is renowned for its seafood, particularly its clam chowder, lobster rolls, and stuffies (stuffed quahogs).

United-States-Rhode-Island

Contributions

Employee Payroll Tax

Contribution TypeRate
FICA Social Security6.20%
FICA Medicare1.45%
Additional tax0.90%

Employer Payroll Tax

Contribution TypeRate
Unemployment Insurance1.10% – 9.70%
Unemployment- New Employer1.09%
FICA Social Security6.20%
FICA Medicare1.45%
FUTA0.60% -6.00%

Payroll

Payroll Cycle

The payroll cycles are monthly or semi-monthly.

13th Salary

There are no provisions in the law regarding 13th salaries.

Work Hours and Week

The workweek is a maximum of 40 hours per week or 8 hours per day.

Overtime

Rhode Island adheres to the Fair Labour Standards Act (FLSA), and overtime is paid when an employee works more than 40 hours in a single workweek. The employer must pay 150% of the regular salary rate for the extra hours worked as overtime.

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Leave

Paid Time Off

Rhode Island lacks specific state legislation regarding the regulations concerning vacation time, including its duration and compensation. Nevertheless, it is customary for employers to determine whether they will provide paid or unpaid vacation leave, as long as they adhere to employment laws and establish such provisions within collective bargaining agreements.

Public Holidays

There are 11 official holidays.

Sick Days

State law offers 1 hour of paid sick leave for every 3 hours worked, up to an annual maximum of 40 hours of paid sick leave.

Maternity Leave

12 working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.

Rhode Island’s Fair Employment Practices Act (FEPA) requires employers with 4 or more employees to provide reasonable accommodation to employees with conditions related to pregnancy, childbirth, or a related medical condition, including modified work environments, longer breaks, light duty, job restructuring, modification of equipment (including seating), etc.

Paternity Leave

Paternity leave falls under the FMLA (see Sick Leave).

Parental Leave

Paternity leave falls under the FMLA (see Sick Leave).

Termination

Termination Process

In the United States, unless there are mass dismissals or specific provisions in an employment contract or collective bargaining agreement, there is no mandated formal notice period for terminating an individual employment relationship.

Notice Period

Most employees are employed “at-will,” and either party can terminate the employment relationship without notice.

Severance Pay

Employers are not legally obligated to provide severance payments to terminated employees. The decision to offer severance pay is at the discretion of the employer and may depend on factors such as the employee’s length of service or specific contractual agreements

Probation Period

Probation Period

There are no provisions in the law regarding probation or trial periods. It is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

Immigration

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/ United States Citizenship and Immigration Services (“USCIS”) for an employment visa on behalf of the prospective employee.

If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).

To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS).

For Work Permits

H-1B – for applicants with a college degree hired to do specialized work.

H-1B1 – for applicants with a college degree from Chile and Singapore.

H-2A – for temporary or seasonal agriculture work.

H-2B – for temporary non-agricultural work.

L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.)

0 – for people with extraordinary ability in science, arts, education, business, or athletics.

VAT

The state sales tax is 7%.