RI Department of Labor and Training

UI and TDI Tax Rates for 2011 Announced

November 19, 2010

RI Department of Labor and Training announced today that the taxable wage base for the Employment Security Fund will remain at $19,000 for the 2011 tax year. The Employment Security Fund, financed by assessments from 31,500 private businesses in the state, covers the cost of Unemployment Insurance benefits for RI workers. The fund’s taxable wage base represents the maximum amount of an employee’s earned wages that are subject to taxation in any given year.

By law, if the Employment Security Fund balance is less than $75 million on September 30, the taxable wage base will be $19,000 for the next calendar year. Rhode Island qualifies for this wage base because its Employment Security Fund is considered to have a negative balance, as it is one of 31 state funds currently borrowing from the federal government in order to meet the demand for unemployment insurance.

While the wage base limits the amount of wages that are taxable, tax rates for individual employers vary according to their experience with the Unemployment Insurance system. In 2011, these rates will range from a minimum of 1.69 percent to a maximum of 9.79 percent. Employers will be notified of their new individual tax rates in December. The rate for new employers will increase to 2.46 percent in 2011, up from 2.30 percent in 2010.

The Department also announced today that the employee contribution rate to the Temporary Disability Insurance Fund will rise to 1.3 percent in 2011, up from 1.2 percent in 2010. Also in 2011, the TDI taxable wage base will be $58,400, an increase of $500 over last year’s taxable wage base. Therefore, the maximum TDI contribution will be $759.20 next year, an increase $64.40 from the 2010 maximum contribution.

Temporary Disability Insurance provides benefit payments to insured RI workers for weeks of unemployment caused by disability. Last year, approximately 392,000 workers contributed to the TDI fund.


The RI Department of Labor and Training offers employment services, educational services and economic opportunity to both individuals and employers. DLT protects Rhode Islandís workforce by enforcing labor laws, prevailing wage rates and workplace health and safety standards. The department also provides temporary income support to unemployed and temporarily disabled workers. For more information on the programs and services available to all Rhode Islanders, please call the RI Department of Labor and Training at (401) 462-8000 or visit the web site at www.dlt.ri.gov.