October 27, 2021
Rhode Island delays computation of 2022 SUI tax rates; relief of COVID-19 benefits charges to employer accounts extended
Rhode Island Governor Daniel J. McKee’s recently issued Executive Order 21-102, which delays the deadline of September 30, 2021 for computing the 2022 state unemployment insurance (SUI) tax rates. It is hoped that delaying the SUI tax computation date to as late as November 30, 2021 will allow the state’s UI trust fund balance to further recover before determining the rate schedule for 2022.
Because of the postponement of the 2022 SUI rate schedule computation, the issuance of the 2022 SUI tax rate notices may also be delayed. Typically, SUI tax rate notices are mailed in batches during December and January.
Expiration of non-charge to employer accounts for COVID-19-related UI benefits extended to October 30, 2021
Executive Order 21-99 extends to October 30, 2021 the provision under Executive Order 20-19, which provides that COVID-19 UI benefits won’t be charged to employer SUI accounts. Executive Order 20-19 had previously been extended several times.
As we previously reported, effective January 27, 2020, contributory employer accounts are not charged with workers’ UI benefits attributable to COVID-19. (ADV 2020-15, Rhode Island Division of Taxation, April 15, 2020; EY Tax Alert* 2020-1830, 7-17-2020.)
2021 SUI tax rates and taxable wage base increased due to effect of COVID-19 on the UI trust fund
The Rhode Island Department of Labor & Training (DLT) announced that the 2021 SUI tax rates and taxable wage base increased. (Rhode Island Department of Labor & Training news release; Rhode Island Division of Taxation website and Advisory 2020-63.)
The 2021 SUI tax rates were assigned based on Rate Schedule H, with rates from ranging from 0.99% to 9.59%, up from 0.69% to 9.19% for 2020 on Rate Schedule F. The SUI taxable wage base for 2021 is $24,600 ($26,100 for maximum rated employers), up from $24,000 ($25,500 for maximum rated employers) for 2020.
The job development fund (JDF) tax rate remained at 0.21% for 2021.
Employer SUI tax unit to be transferred back to the Rhode Island Department of Labor and Training
The Rhode Island Division of Taxation announced that after many years the Employer Tax Unit, which handles the tax side of the UI program. will be transferred back to the DLT. The Division is working with the DLT on an implementation plan to gradually transition the Employer Tax Unit to the DLT.
EY Payroll News Flash