How Much Does It Cost to Hire an Employee in Rhode Island? (2026)
State-specific payroll taxes, workers' comp, and total employer costs in Rhode Island.
Total Cost at $60K Salary
$66,042
Cost multiplier: 1.1x
SUTA Rate (Mid)
1.5%
Wage base: $29,200
Workers' Comp Rate
1.62%
Has state income tax
Rhode Island Employer Tax Details
State-specific payroll obligations for employers
| SUTA Rate Range | 0.1% – 6.7% |
| SUTA New Employer Rate (typical) | 1.5% |
| SUTA Wage Base | $29,200 |
| Workers' Compensation (avg) | 1.62% of payroll |
| State Income Tax | Yes |
| Disability Insurance | 0.0% |
RI TDI is employee-funded.
Example Employer Costs in Rhode Island
Mandatory employer taxes only (no benefits or overhead)
| Component | $40,000 Salary | $60,000 Salary | $80,000 Salary |
|---|---|---|---|
| Social Security (6.2%) | $2,480 | $3,720 | $4,960 |
| Medicare (1.45%) | $580 | $870 | $1,160 |
| FUTA | $42 | $42 | $42 |
| SUTA (RI) | $438 | $438 | $438 |
| Workers' Comp | $648 | $972 | $1,296 |
| State Programs (DI/PFL) | $0 | $0 | $0 |
| Total Employer Taxes | $4,188 | $6,042 | $7,896 |
| Total Cost (salary + taxes) | $44,188 (1.1x) | $66,042 (1.1x) | $87,896 (1.1x) |
These estimates include mandatory employer payroll taxes only. Add benefits ($7K-$17K) and overhead (~10% of salary) for full cost.
How Rhode Island Compares
Rhode Island's typical SUTA rate of 1.5% is below the national average of ~1.70%. However, with a wage base of $29,200, which is well above the federal minimum of $7,000, the effective SUTA cost per employee can be significant.
Workers' compensation at 1.62% of payroll is above the national average of ~1.20%.
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