Definition of Terms
1. Average
Annual Wage -
The wage for a particular industry group of the Standard Industrial
Classification code (SIC) or the corresponding North American Industry
Classification System (NAICS) code, derived from the quarterly wage and
employment data reported by all private employers to the Department of
Labor and Training under its Quarterly Census of Employment and Wages (QCEW)
program. The Department publishes the average annual wage by three and
four digit NAICS Codes annually.
2. Full-time
Equivalent Employee -
means an employee who works a minimum of 30 hours per week within the
state or two part-time employees who together work a minimum of 30 hours
per week within the state.
3.
Treatment of
employees on Payroll for less than 12 months - In order to present a fair representation of a
company’s true median or average annual wage, the wage information for
employees on the payroll for less than a full year should be annualized.
For example, if someone worked for only 26 weeks during the year his/her
wages should be doubled to reflect a full 52 week year. By the same
token if someone worked for the first part of a year but did not stay
with the company for the full year, his/her wages should also be
annualized and included when computing the median annual wage.
4.
Median Annual
Wage -
That annual wage determined by ranking the annual wages of all employees
from low to high and then taking the wage rate such that half the rates
are below that figure and half are above that figure. If there is no one
middle number than the median is the arithmetic average of the two
middle numbers.
5.
Production Worker - Includes
non-supervisory workers (and working supervisors) who are directly
engaged in the manufacture of the product(s) of the establishment and
other closely related activities. Types of work include: fabricating,
storage, shipping, receiving, warehousing, trucking, packing, handling,
maintenance, product development, processing, assembling, janitorial,
repair, and record keeping related to production.
6.
Time Period for
Employer Computing Median Annual Wage - The employer applying for the Investment Tax
Credit should use the median for the latest 12-month period available
provided the time period is at least as current as the latest period
used by the Department of Labor and Training for determining the
employer’s qualification for the Investment Tax Credit.
7.
Qualified
Taxpayer (QT)
is a taxpayer in any of the businesses described in major SIC groups 20
through 39, 50 and 51, 60 through 67, 73, 76, 80 through 82, 87 and 89
and 3 digit 781 of the SIC code OR the equivalent NAICS codes
311, 313-316, 321-327, 331-337, 423-425, 511, 518, 522-525, 531,533,
541,551, 561, 611, 621-623,811,51211, 5122, 7115 of the NAICS code, and
which meet the wage requirements necessary for DLT certification.
8.
High Performance
Manufacturer (HPM) is a QT with SIC codes in the major groups 28, 30, 34
to 36 and 38 OR NAICS codes in 316,322, 325 -326,332-336 and 339
who must meet the additional wage requirements as shown in section
44-31-1(3) of the RI General Laws (Investment Tax Credit at www.rilin.state.ri.us/statutes).
They must be initially certified by DLT as a qualified taxpayer prior to
attaining HPM status. Support
documentation for the latter must be retained as it may be subject to RI
Tax Division review.
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