Page 291 - Essentials of Payroll: Management and Accounting

ESSENTIALS of Payr oll: Management and Accounting
EXHIBIT 10.6 (CONTINUED)

Employee Taxable
Employer Withholding Wage
State Tax Rate Rate Limit Coverage
New York (4) 0.5% (5) None Any company employing
someone in at least
30 days of the past
calendar year
Puerto Rico 0.3% 0.3% $9,000 Any company employing
someone at any time in
the current or
immediately preceding
year, for any interval
Rhode Island None 1.4% $42,000 Any company employing
someone during the
calendar year, for any
interval
Note 1: None, though the employer can elect coverage up to 1.66 percent.
Note 2: None, though specific benefits must be paid.
Note 3: Half of benefits paid, up to a maximum of 0.5 percent.
Note 4: Employers cover the cost of the specified disability benefits, less amounts
collected from employees.
Note 5: Not to exceed $0.60 per week for each employee.

I N THE REAL WORLD

What to Do with a

Rate Change Notice

A company that outsourced its payroll function received a notice from
the state, informing it of a change in its contribution rate for the upcom-
ing year. An accounting clerk filed the notice, rather than informing the
payroll supplier of the change. Due to this error, the company’s state
unemployment contributions were improperly low for the year, resulting
in fines and penalties by the state government. Therefore, always for-
ward notices of contribution rate changes to your payroll supplier!

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