Rhode Island · 2026 and 2027
Rhode Island employer payroll taxes and employee cost: 1% SUTA on $30,800
In Rhode Island, a $50,000 employee costs a new employer about $62,207 a year in 2026: 24.4% on top of pay for payroll taxes, unemployment insurance, workers' comp and health coverage. Change any input to see your own number.
Calculate the cost of an employee in Rhode Island
Estimates for planning, not tax or legal advice. Rates change and some depend on your business; confirm yours with your state agencies, insurer or payroll provider.
What a Rhode Island employer pays on top of pay
Every line of the calculator, explained, with the official source of each number.
- Social Security and Medicare
7.65% of pay
The employer matches the employee: 6.2% Social Security on pay up to $184,500 in 2026 ($192,300 in 2027) and 1.45% Medicare on all pay.
per Social Security Administration, as of Jan 1, 2026
- Federal unemployment tax (FUTA)
$42 per employee
6% of the first $7,000 of each employee's pay, less the 5.4% credit for paying Rhode Island unemployment tax on time.
per Internal Revenue Service, as of Jan 1, 2026
- Rhode Island unemployment insurance (SUTA)
1% of $30,800
New employers pay 1% on the first $30,800 of each employee's pay in 2026. After two to three years the rate follows your own claims history.
per U.S. Department of Labor, Employment and Training Administration, as of Jan 1, 2026
- State paid leave and disability premiums
None
Rhode Island has no employer-paid family leave or disability insurance premium among the state programs we track.
- Paid sick leave
Not verified
Paid sick leave: the official source could not be read on 2026-10-23, so no sick-leave cost is added. It will be added after the source is verified.
- Workers' compensation
$1.38 per $100 of payroll
Index rate for a standard mix of job classes: rank 10 of 51 (1 = highest) and 127% of the national median in the 2024 study. Your premium depends on your job classes and claims history.
per Oregon Department of Consumer and Business Services, as of Jan 1, 2024
- Health insurance (employer share)
$7,342 single / $20,333 family
Average employer contribution per enrolled employee a year at Rhode Island private-sector employers that offer coverage, 2025 survey.
per Agency for Healthcare Research and Quality (MEPS-IC), as of Jan 1, 2025
- Minimum wage
$16 in 2026
Rhode Island's rate.
per U.S. Department of Labor, Wage and Hour Division, as of Oct 8, 2026
- Minimum wage for 2027
Not included
Minimum wage for 2027: not used until the official figure is verified.
- Temporary Disability and Caregiver Insurance
Not included
Temporary Disability and Caregiver Insurance: the official page could not be read on 2026-10-23.
Checked against each source on Oct 23, 2026.
Two worked examples in Rhode Island
Both for a new employer with 10 employees in a general industry in 2026, with single health coverage at the state average.
Salaried employee at $50,000
A $50,000 salary, 40 hours a week.
| Pay for hours worked2,080 hours | $50,000 |
|---|---|
| Social Security (employer share)6.2% of $50,000 | $3,100 |
| Medicare (employer share)1.45% of $50,000 | $725 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $30,800 | $308 |
| Workers' compensation (state index rate)$1.38 per $100 of payroll | $690 |
| Health insurance (single coverage, state average)average employer contribution | $7,342 |
| Total cost a year | $62,207 |
24.4% on top of pay · $29.91 per hour worked
Hourly employee at $18 an hour
$18 an hour for 40 hours a week, 52 weeks.
| Pay for hours worked2,080 hours | $37,440 |
|---|---|
| Social Security (employer share)6.2% of $37,440 | $2,321 |
| Medicare (employer share)1.45% of $37,440 | $543 |
| FUTA (federal unemployment tax)0.6% of $7,000 | $42 |
| State unemployment insurance (new employer)1% of $30,800 | $308 |
| Workers' compensation (state index rate)$1.38 per $100 of payroll | $517 |
| Health insurance (single coverage, state average)average employer contribution | $7,342 |
| Total cost a year | $48,513 |
29.6% on top of pay · $23.32 per hour worked
What changes for Rhode Island employers in 2027
- The Social Security wage base rises from $184,500 to $192,300: up to $484 more employer tax for employees paid above it. per Social Security Administration, as of Jan 1, 2027
Only changes already official on Oct 23, 2026. Most states publish next year's unemployment insurance rates in November and December; this page is updated when they do.
Frequently asked questions
How much does it cost to hire an employee in Rhode Island?
About $62,207 a year in 2026 for a $50,000 employee of a new Rhode Island employer with 10 staff: $12,207 above pay, of which $7,342 is health coverage, $690 workers' comp and $308 Rhode Island unemployment tax. At $18 an hour full time: $48,513.
What payroll taxes do employers pay in Rhode Island?
Rhode Island new employers pay $4,175 yearly on a $50,000 salary, $308 of it state unemployment tax.
What is the Rhode Island SUTA rate for new employers in 2026?
1% on the first $30,800 of each employee's pay: up to $308 per employee a year.
What is the minimum wage in Rhode Island in 2027?
$16 an hour in 2026; Rhode Island had not published its 2027 rate by Oct 23, 2026.
Is paid sick leave required in Rhode Island?
Rhode Island requires paid leave; we could not verify its official source on Oct 23, 2026.
How much does workers' comp cost in Rhode Island?
$1.38 per $100 of payroll at Rhode Island's index rate (rank 10 of 51, 127% of the median): about $690 on $50,000 of pay.
How much do Rhode Island employers pay for health insurance?
$7,342 a year per employee with single coverage and $20,333 with family coverage, the average Rhode Island private-employer share of $9,388 and $27,361 premiums in 2025.
More employer cost pages
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Software and services for these costs
- Payroll Software
Calculates and files these payroll taxes for every state you hire in.
- PEO Services
Takes on payroll taxes, workers' comp and benefits, often at group rates.
- Benefits Administration
Runs the health plan and leave programs behind the benefits lines.
Benefits and workers’ comp are most of this cost
A PEO pools employers for health insurance and workers’ comp, often at group rates. Compare PEOs we research, with verified prices and features.