State Codes and Statutes
Statutes > Rhode-island > Title-28 > Chapter-28-40 > 28-40-1SECTION 28-40-1
§ 28-40-1 Amount of employee contributions– Wages on which based. – (a) The taxable wage base under this chapter for each calendar year shall beequal to the greater of thirty-eight thousand dollars ($38,000) or the annualearnings needed by an individual to qualify for the maximum weekly benefitamount and the maximum duration under chapters 39 – 41 of this title. Thattaxable wage base shall be computed as follows: Every September 30, the maximumweekly benefit amount in effect as of that date shall be multiplied by thirty(30) and the resultant product shall be divided by thirty-six hundredths (.36).If the result thus obtained is not an even multiple of one hundred dollars($100), it shall be rounded upward to the next higher even multiple of onehundred dollars ($100). That taxable wage base shall be effective for thecalendar year beginning on the next January 1.
(b) Each employee shall contribute with respect to employmentafter the date upon which the employer becomes subject to chapters 39 – 41of this title, an amount equal to the fund cost rate times the wages paid bythe employer to the employee up to the taxable wage base as defined andcomputed in subsection (a) of this section. The employee contribution rate forthe following calendar year shall be determined by computing the fund cost rateon or before November 15 of each year as follows:
(1) The total amount of disbursements made from the fund forthe twelve (12) month period ending on the immediately preceding September 30shall be divided by the total taxable wages paid by employers during the twelve(12) month period ending on the immediately preceding June 30. The ratio thusobtained shall be multiplied by one hundred (100) and the resultant product ifnot an exact multiple of one-tenth of one percent (0.1%) shall be rounded downto the next lowest multiple of one-tenth of one percent (0.1%);
(2) If the fund balance as of the preceding September 30 isless than the total disbursements from the fund for the six (6) month periodending on that September 30, that difference shall be added to the totaldisbursements for the twelve (12) month period ending September 30 for thepurpose of computing the fund cost rate, and if the resulting fund cost rate isnot an exact multiple of one-tenth of one percent (0.1%) it shall be rounded tothe nearest multiple of one-tenth of one percent (0.1%).
