AP NEWS

Tax increase planned to cover disability, caregiver claims

November 27, 2019

PROVIDENCE, R.I. (AP) — Rhode Island’s payroll tax rate is rising to cover the cost of more residents receiving state disability and caregiver benefits last year.

The Department of Labor and Training says the temporary disability and caregiver insurance withholding rate will increase from 1.1% to 1.3%, starting January 1.

The Providence Journal reports that someone earning $50,000 who paid $550 last year will pay $650 next year.

A department spokeswoman said in an email that more employed workers and a greater awareness of the caregiver benefit program could be behind the increased claims.

Rhode Island has a mandatory public insurance program for employees who miss work due to illness or injury.

It’s the first time the tax has increased in five years. Between 2017 and 2018, the rate fell from 1.2% to 1.1%.

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Information from: The Providence Journal, http://www.providencejournal.com