As part of the recently enacted fiscal-year 2012 state budget (article 4), Rhode Island changed the way in which the unemployment taxable wage base is calculated in §28-43-7 of the General Laws in C. 28-43.
2012 Will Be the First Year the New Formula Is Used
Beginning in 2012, the formula will be to calculate an “average annual wage in covered employment” for the calendar year preceding the “computation date” and multiply that figure by 46.5%. The resulting product, rounded up to the nearest $200, will be the unemployment wage base for the year following the computation date.
Computation Date Will Be September 30
The computation date will be September 30. For example, to calculate the unemployment wage base for 2012, the computation date will be September 30, 2011 and the look-back year will be 2010.
Negative Balances Can Lead To Surcharge
Employers with a reserve account percentage of negative twenty-four or less will have a taxable wage base of the standard taxable wage plus $1,500.
Contact Vision Payroll Today
Contact Vision Payroll if you have any further questions on the Rhode Island unemployment taxable wage base calculation.