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<\/a><\/figure><\/div>\n\n\nChecklist for Rhode Island household employers<\/strong><\/h2>\n\n\n\nWe know you\u2019re busy so here\u2019s a quick \u201cto-do\u201d list with links to extra details below.<\/p>\n\n\n\n
Beginning of employment <\/strong><\/h3>\n\n\n\n\n- Verify caregiver\u2019s work eligibility<\/a>.<\/li>\n\n\n\n
- Set up EIN & state tax account(s)<\/a>.<\/li>\n\n\n\n
- Obtain workers\u2019 compensation insurance<\/a>. <\/li>\n\n\n\n
- Display employment posters<\/a>. <\/li>\n<\/ul>\n\n\n\n
During employment <\/strong><\/h3>\n\n\n\n\n- File returns, remit taxes and manage correspondence.<\/a><\/li>\n\n\n\n
- Pay at least Rhode Island minimum wage<\/a>, weekly. <\/li>\n\n\n\n
- Pay overtime<\/a>, when it applies.<\/li>\n\n\n\n
- Allow for paid disability leave<\/a>, when it applies.<\/li>\n<\/ul>\n\n\n\n
Optional benefits for your employee<\/strong><\/h3>\n\n\n\n\n- Health insurance<\/a> <\/li>\n\n\n\n
- Mileage reimbursement<\/a> <\/li>\n<\/ul>\n\n\n\n
Ending employment<\/strong><\/h3>\n\n\n\n\n- Provide a termination notice<\/a>.<\/li>\n\n\n\n
- Manage unused paid time off<\/a>. <\/li>\n\n\n\n
- Close down your state employment tax account(s)<\/a>.<\/li>\n\n\n\n
- Maintain payroll records<\/a>.<\/li>\n<\/ul>\n\n\n\n<\/div>\n\n\n\n
Beginning of employment <\/strong><\/h2>\n\n\n\nVerify caregiver\u2019s work eligibility<\/h3>\n\n\n\n
Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they\u2019re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver\u2019s employment eligibility is ever questioned.<\/p>\n\n\n\nSet up EIN & state tax account(s)<\/h3>\n\n\n\n
You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p>\n\n\n\nWorkers\u2019 compensation<\/strong><\/h3>\n\n\n\nHousehold employers in Rhode Island are not required to get coverage for workers\u2019 compensation insurance<\/a>, but we recommend all families do so. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online<\/a>, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com<\/a>.<\/p>\n\n\n\nEmployment posters <\/strong><\/h3>\n\n\n\nFamilies in Rhode Island are required to notify their employee of their rights by sharing these posters<\/a>.<\/p>\n\n\n\nDuring employment <\/strong><\/h2>\n\n\n\nFile returns, remit taxes and manage correspondence<\/h3>\n\n\n\n\n- File state employment tax returns throughout the year and remit state employer and employee taxes.<\/li>\n\n\n\n
- Remit federal employer and employee taxes via 1040-ES<\/a> estimated tax payment voucher four times each year.<\/li>\n\n\n\n
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>\n\n\n\n
- Manage ongoing alerts and notices from the state (tax rates and labor law is subject to change at any time.<\/li>\n<\/ul>\n\n\n\n
Minimum wage rate<\/h3>\n\n\n\n
The current minimum wage in Rhode Island is $15.00\/hour.<\/p>\n\n\n\n
Rhode Island overtime requirements<\/h3>\n\n\n\n\n- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.<\/li>\n\n\n\n
- Live-in employees are not required to be paid overtime. <\/li>\n\n\n\n
- Overtime is not required to be paid when work is performed on a holiday. <\/li>\n<\/ul>\n\n\n\n
Pay frequency requirement<\/h3>\n\n\n\n
Generally, household employers in Rhode Island are required to pay their employees on a weekly basis.<\/p>\n\n\n\n
State disability insurance<\/h3>\n\n\n\n
The Rhode Island Temporary Disability Insurance Program (SDI) provides disability insurance<\/a> benefits to employees who cannot work because of sickness or injury not caused by their job. The SDI Program is funded by mandatory payroll deductions from employee wages.<\/p>\n\n\n\nOptional benefits for your employee <\/strong><\/h2>\n\n\n\nHealth insurance<\/h3>\n\n\n\n
Families with only 1 employee can make contributions toward their employee\u2019s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.<\/p>\n\n\n\n
Families with 2 or more employees have 3 options:<\/p>\n\n\n\n
\n- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).<\/li>\n\n\n\n
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).<\/li>\n\n\n\n
- Purchase a policy through SHOP (Small Business Health Options Program). <\/li>\n<\/ol>\n\n\n\n
- \n
- Verify caregiver\u2019s work eligibility<\/a>.<\/li>\n\n\n\n
- Set up EIN & state tax account(s)<\/a>.<\/li>\n\n\n\n
- Obtain workers\u2019 compensation insurance<\/a>. <\/li>\n\n\n\n
- Display employment posters<\/a>. <\/li>\n<\/ul>\n\n\n\n
During employment <\/strong><\/h3>\n\n\n\n
- \n
- File returns, remit taxes and manage correspondence.<\/a><\/li>\n\n\n\n
- Pay at least Rhode Island minimum wage<\/a>, weekly. <\/li>\n\n\n\n
- Pay overtime<\/a>, when it applies.<\/li>\n\n\n\n
- Allow for paid disability leave<\/a>, when it applies.<\/li>\n<\/ul>\n\n\n\n
Optional benefits for your employee<\/strong><\/h3>\n\n\n\n
- \n
- Health insurance<\/a> <\/li>\n\n\n\n
- Mileage reimbursement<\/a> <\/li>\n<\/ul>\n\n\n\n
Ending employment<\/strong><\/h3>\n\n\n\n
- \n
- Provide a termination notice<\/a>.<\/li>\n\n\n\n
- Manage unused paid time off<\/a>. <\/li>\n\n\n\n
- Close down your state employment tax account(s)<\/a>.<\/li>\n\n\n\n
- Maintain payroll records<\/a>.<\/li>\n<\/ul>\n\n\n\n
<\/div>\n\n\n\nBeginning of employment <\/strong><\/h2>\n\n\n\n
Verify caregiver\u2019s work eligibility<\/h3>\n\n\n\n
Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they\u2019re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver\u2019s employment eligibility is ever questioned.<\/p>\n\n\n\n
Set up EIN & state tax account(s)<\/h3>\n\n\n\n
You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p>\n\n\n\n
Workers\u2019 compensation<\/strong><\/h3>\n\n\n\n
Household employers in Rhode Island are not required to get coverage for workers\u2019 compensation insurance<\/a>, but we recommend all families do so. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online<\/a>, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com<\/a>.<\/p>\n\n\n\n
Employment posters <\/strong><\/h3>\n\n\n\n
Families in Rhode Island are required to notify their employee of their rights by sharing these posters<\/a>.<\/p>\n\n\n\n
During employment <\/strong><\/h2>\n\n\n\n
File returns, remit taxes and manage correspondence<\/h3>\n\n\n\n
- \n
- File state employment tax returns throughout the year and remit state employer and employee taxes.<\/li>\n\n\n\n
- Remit federal employer and employee taxes via 1040-ES<\/a> estimated tax payment voucher four times each year.<\/li>\n\n\n\n
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>\n\n\n\n
- Manage ongoing alerts and notices from the state (tax rates and labor law is subject to change at any time.<\/li>\n<\/ul>\n\n\n\n
Minimum wage rate<\/h3>\n\n\n\n
The current minimum wage in Rhode Island is $15.00\/hour.<\/p>\n\n\n\n
Rhode Island overtime requirements<\/h3>\n\n\n\n
- \n
- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.<\/li>\n\n\n\n
- Live-in employees are not required to be paid overtime. <\/li>\n\n\n\n
- Overtime is not required to be paid when work is performed on a holiday. <\/li>\n<\/ul>\n\n\n\n
Pay frequency requirement<\/h3>\n\n\n\n
Generally, household employers in Rhode Island are required to pay their employees on a weekly basis.<\/p>\n\n\n\n
State disability insurance<\/h3>\n\n\n\n
The Rhode Island Temporary Disability Insurance Program (SDI) provides disability insurance<\/a> benefits to employees who cannot work because of sickness or injury not caused by their job. The SDI Program is funded by mandatory payroll deductions from employee wages.<\/p>\n\n\n\n
Optional benefits for your employee <\/strong><\/h2>\n\n\n\n
Health insurance<\/h3>\n\n\n\n
Families with only 1 employee can make contributions toward their employee\u2019s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.<\/p>\n\n\n\n
Families with 2 or more employees have 3 options:<\/p>\n\n\n\n
- \n
- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).<\/li>\n\n\n\n
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).<\/li>\n\n\n\n
- Purchase a policy through SHOP (Small Business Health Options Program). <\/li>\n<\/ol>\n\n\n\n
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>\n\n\n\n
- Manage unused paid time off<\/a>. <\/li>\n\n\n\n
- Mileage reimbursement<\/a> <\/li>\n<\/ul>\n\n\n\n
- Pay at least Rhode Island minimum wage<\/a>, weekly. <\/li>\n\n\n\n
- Set up EIN & state tax account(s)<\/a>.<\/li>\n\n\n\n