Governor Gina M. Raimondo announced recently that the Rhode Island Department of Labor and Training will lower unemployment insurance tax rates again next year, saving Rhode Island employers an additional $10 million. This is the second consecutive year unemployment insurance rates have declined. In all, the Raimondo administration has saved local employers $40 million annually, according to a release from the Governor’s office received on Wednesday, Dec. 6.
“Since the start of 2015, we’ve cut our unemployment rate by more than one-third and we’ve created thousands of new jobs. Because of that growth, we cut the unemployment insurance tax last year for the first time in 25 years. Our economy continued to strengthen this year because of investments we’ve made in job training and education, and next year, businesses will see another cut in their unemployment taxes,” said Raimondo. “This tax relief will help businesses, especially small- and medium-sized businesses, invest in new equipment, new training and new staff. It makes Rhode Island a more business-friendly state, and will help more Rhode Islanders get back to work.”
In 2016, the Rhode Island General Assembly approved the Governor’s proposal to revise the antiquated rate schedule and Rhode Island’s average per-employee tax liability to put it closer in line with neighboring states. As a result of this change, Rhode Island improved from 50th to 23rd on the annual Tax Foundation’s national unemployment insurance tax ranking.
Unemployment Insurance (UI) provides temporary income support to workers who have lost their jobs through no fault of their own and meet the monetary requirements. It is funded entirely from state and federal UI taxes paid by Rhode Island’s 33,000 employers.
The Rhode Island Department of Labor and Training is notifying employers of their new tax rates.