Rhode Island Department of Labor and Training





2008 Employment Security Fund Tax Rates
RI Dept. of Labor and Training Director Adelita S. Orefice announced today that the taxable wage base for the Employment Security Fund will remain at $14,000 for the 2008 tax year. The Employment Security Fund, financed by assessments of all private businesses in the state, covers the cost of Unemployment Insurance benefits for RI workers.

The taxable wage base represents the maximum amount of earned wages per employee that can be taxed in any given year. According to the law, if the Employment Security Fund balance is more than $175 million but less than $225 million on September 30, the taxable wage base will be $14,000 for the next calendar year. As of September 30, 2007, the Employment Security Fund held $191.7 million in reserves.

Approximately 35,000 employers paid into the fund in 2007. 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 2008, these rates will range from a minimum of 1.69 percent to a maximum of 9.79 percent in 2008. Employers will be notified of their individual 2008 tax rates in December. The rate for new employers will be 2.43 percent in 2008.

2008 Temporary Disability Insurance Tax Rates
Orefice also announced today that the employee contribution rate to the Temporary Disability Insurance Fund will remain at 1.3 percent in 2008, the result of a healthy reserve in the fund. The TDI Fund had a balance of $102.8 million as of September 30, 2007, representing an increase of almost $3 million from the prior year.

The TDI taxable wage base will be $54,400 in 2008, up $2,300 from the 2007 base of $52,100. The TDI taxable wage base is tied to the maximum weekly benefit amount, which in July increased to $652 per week, up $27 from the previous year’s maximum. The maximum TDI contribution will be $707.20 next year, an increase of $29.90 from the maximum contribution of $677.30 in 2007.

Temporary Disability Insurance provides benefit payments to insured RI workers for weeks of unemployment caused by disability. Last year, approximately 422,000 workers contributed to the TDI fund.


About the RI Department of Labor and Training

The RI Department of Labor and Training offers employment services, educational services and economic opportunity to both individuals and employers. DLT protects Rhode Island’s 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.