Question 1

Is PEO certification required in Rhode Island?

Accepted Answer

Yes. Rhode Island requires annual certification as an employee leasing company through the Division of Taxation under RIGL 44-30-71.4. Certificates are valid from August 1 to July 30, with a $500 fee for new applicants and $250 for renewals.

Question 2

Does Rhode Island require a surety bond for PEOs?

Accepted Answer

Yes, but only for companies operating less than two years. These firms must post a $50,000 surety bond each year to ensure withheld taxes are paid. The bond requirement phases out once the company has two years of operating history.

Question 3

What is the SUI taxable wage base in Rhode Island?

Accepted Answer

The 2026 SUI taxable wage base in Rhode Island is $30,800, which is up from $29,800 in 2025. For negative-balance employers assigned the maximum rate, the wage base is $32,300. The new employer rate is 1.21%.

Question 4

Does Rhode Island have temporary disability insurance?

Accepted Answer

Yes. Rhode Island runs its own Temporary Disability Insurance (TDI) program, the oldest in the country dating to 1942, pooled with Temporary Caregiver Insurance (TCI). TCI provides up to 8 weeks of paid leave to care for a seriously ill family member or bond with a new child.

Question 5

What are the worker withholding requirements in Rhode Island?

Accepted Answer

Workers in Rhode Island have a 1.1% TDI withholding deducted from their pay, which is in addition to SUI and federal withholdings. This state disability levy is part of the standard payroll build for PEO employees.

Question 6

What is the minimum wage in Rhode Island?

Accepted Answer

The Rhode Island minimum wage for 2026 is $16.00 per hour, which is one of the highest wage floors in the Northeast. The rate is scheduled to continue increasing annually.

Rhode Island PEO FAQs: Certification, Bonding, and TDI

Frequently Asked Questions