RI Tax Filing Help

· Frequently asked questions
· Withholding tax help
· Sales & Use tax help

Frequently Asked Questions

What is a tax ID number?
The tax ID number is the number provided to you by the Rhode Island Division of Taxation when you registered your business.

What are the filing periods?
Withholding Tax:
· Daily filers: Tax filing period is the date the employees get paid.
· Quarter/monthly (weekly) filers: See chart below

· Monthly filers: Tax filing period is the last day of the quarter for which you are filing (0331YY, 0630YY, 0930YY, 1231YY)

· Quarterly

Sales & Use Tax:
· Monthly
· Quarterly

When are filings due?
All monthly filers: the tax filing period is the month for which you are filing. This is not the due date. Monthly sales tax payments are still due on the 20th of each month for hte previous calendar month. Do not use quarter end dates unless you are a quarterly withholding tax filer. Do not enter due dates.

Unless you are notified of a change in filing frequency, the current due dates used to file your taxes will remain the same.

What number do I call if I have a question?
You may call 401-574-8484. Please have your reference number and tax ID number ready.

Does the State of Rhode Island initiate or automatically deduct the payments?
No. In either case, we cannot automate or initiate a transaction. Your company is responsible for initiating the transaction that would allow the funds to be transferred to our account.

How do I make a filing payment?
Payment of all electronic tax filings shall be made by Electronic Funds Transfer (EFT). A taxpayer must complete the AgreementForm before completing any online tax filings through RI.gov.

How do I get a proof of payment?
If proof of payment is required, it is the taxpayer's responsibility to work with its financial institution to obtain verification that funds were transferred from the taxpayer's account into the state's account. A bank can supply a taxpayer with a trace number that it generates for the ACH network.

Can I get a refund?
Current Division of taxation procedures will be followed. Refunds will not be issued electronically through the ACH network. No reversals will be allowed except in cases permitted by ACH rules and regulations. However, even in such cases, you are required to contact the Division of Taxation's EFT unit for permission.

Can I view my account's activity?
Yes. You may see a log of all electronic tax filings for your state tax ID number.

Withholding Tax

Who must complete the withholding monthly return?
The filing service must be used by employers who withhold $50.00 or more but less than $600.00 for a calendar month from employees' wages.

Consecutive returns for each calendar month accounting for all taxes withheld during the year must be filed by an employer required to report monthly. If not tax was withheld during a particular month, a return is still required to be filed for such month.

If the amount withheld reaches or exceeds $600.00 for any calendar month, the employer must begin to file quarter/monthly or daily as required.

An annual reconciliation of tax withheld must be filed by the employer with the Division of Taxation on or before February 28th.

General Tax Filing Instructions:

1. Enter the employer's state ID number and password

2. Select Tax filing type

3. Select filing frequency

4. If filing is the first and/or the second month of the quarter a T-204M-R reconciliation must be comple ted

5. Input payment amount and authorize EFT

6. Verify amount

7. Print confirmation screen with filing reference number

General information about withholding tax

Type of return Form No. Due Date
Daily Withholding
($24,000 or more withheld each month)
941-D-RI To be filed with the Division of Taxation the next banking day after the payroll is paid.
Quarter-Monthly Withholding
($600 or more but less than $24,000 withheld each month)
941-QM-RI To be filed with the Division of Taxation within three banking days after the last day of the quarter- monthly period.

"Quarter-Monthly period" means the first seven days of a calendar month, the eighth day through the fifteenth day of a calenda r month, the sixteenth day through the twenty-second day of a calendar month, and the twenty-third through the last day of the calen dar month.

Monthly Withholding
($50 or more but less than $600 withheld each month)
941-M-RI To be filed with the Division of Taxation on or before the 20th day of the succeeding month, except fo r the months of March, June, September and December may be filed by the last day of the following month.
Quarterly Withholding
(Less than $50 withheld each month)
941-Q-RI To be filed with the Division of Taxation on or before the last day of the month following the end of the quarter.
W-3-RI To be filed with the Division of Taxation on or before February 28th or at the termination of business .

Notice to employers

Due to a recent change in the Rhode Island Income Tax Law, the state withholding tax is no longer a percentage of the federal ta x withheld. Effective for wages paid on or after July 1, 2001, employers are required to compute the Rhode Island Withholding Tax in accordance with the Percentage Method Schedule or the Withholding Tax Tables.

Sales & Use Tax

Instructions for preparing quarterly Sales & Use return

Due last day of January, April, July, and October for preceding three (3) months (calendar quarter)

The form (T-204 Q) Sales & Use Tax- Quarterly is to be used by sellers of tangible personal property who are specially authorized using the online account submission form. If you have no transactions to report for the calendar quarter, insert ending date of the quarter covered; input "No sales" in the money column.

A separate return form must be filed to report sales for each such calendar quarter and ech business location which requires a specific permit. All figures on the return must represent the combined figures of the three (3) preceding months (calendar quarter).

Schedule A

ITEM 1. Include all sales for the quarter in any way related to Rhode island businesses, including sales exempt from tax; leases and rentals of personal property for consumers. Do not include sales from rental of living quarters.

ITEM 2. Enter sales for the quarter from living quarters in hotels, motels, rooming houses or tourist camps not included in Item 1.

ITEM 3: Enter purchase price of merchandise, equipment, or other tangible personal property purchased for resale and subsequently used or consumed by you during the quarter rather than sold.

ITEM 4: Enter cost of tangible personal property purchased outside of Rhode Island tax free for use, storage, or consumption by you in this state during the quarter.

ITEM 5: Enter here the amount of any other transactions during the quarter subject to the tax (e.g. electricity, gas, etc., used for heating or lighting and purchased without payment of the tax).

ITEM 6: Total of items 1, 2, 3, 4, and 5 for the quarter.

ITEM 7: Total deductions for the quarter from schedule B (see schedule B instructions below).

ITEM 8: Item 6 less than item 7 - Taxable Sales for the quarter.

ITEM 9: Item 8 times 7% - Sales & Use tax due for the quarter.

ITEM 10: Any credit for sales taxes paid in other states. Note: credit taken cannot exceed tax due on the amount of R.I. use tax.

ITEM 11: Subtract total of item 10 from item 9 and enter result.

Schedule B

Legal deductions (must be included in Schedule A - item 1 or 2)

A. Enter sales of food products for human consumption ordinarily sold by grocery stores. DO NOT DEDUCT "take-out" orders sold by restaurants, drive-ins, mobile canteens, and other eating establishments.

B. Enter sales for resale which are covered by valid resale certificates. Include sales of property to be manufactured into, or DIRECTLY CONSUMED in the process of manufacturing products for resale which are covered by valid manufacturers' certificates.

C. Enter sales of property delivered to out-of-state addresses, or to common carrier or the U.S. mails (but NOT to any purchaser or his trucker or agent) for transportation to out-of-state addresses.

D. Enter sales made to the Federal government, the State of Rhode Island, or to any city, town, district, or other political sub-division of this state, and sales made to hospitals not operated for profit, educations institutions not operated for profit, churches, orphanages, and other institutions or organizations operated EXCLUSIVELY for religious or charitable purposes.

E. Enter retail sales of newspapers; newspaper shall mean an unbound publication printed on newsprint which contains news, editorial comment, opinions, features, advertising matter and other matters os public interest. Newspaper dos not include a magazine, handbill, circular, flyer, sales catalogue, or similar item until the item is printed for and distributed as a part of a newspaper.

F. Enter retail sales of gasoline and other motor fuel (but not motor oil) taxed under Chapter 36 of the general laws.

I. Enter sales of clothing and footwear except that primarily designed for athletic activity or protective use.

J. Enter sales of motor vehicles.

K. Enter with appropriate description for each, any other legal deduction such as

1) Sales of Containers;
a) non-returnable containers (including boxes, paper bags, and wrapping materials) when sold without the contents to persons who place the contents in the containers and sell the contents with the containers; b) containers of gasoline or other exempt property when such containers are sold with such exempt property; c) returnable containers when sold with contents in connection with a retai l sale of contents or when resold for refilling; and indicate which type of container sales is included in the figure;

2) sales of crutches, artificial limbs, dentures, spectacles and eyeglasses, artificial eyes, artificial hearing devices and oth er prosthesis or orthopedic appliances, designed and purchased to be worn on the person of hte owner or user;

3) sales of professional services;

4) cash discounts taken by customers;

5) enter sales of livestock, poultry, feed, seeds and plants of a kind the products of which ordinarily constitute food for human consumption, and fertilizer, and

7) sales of water, electricity, gas and heating fuels for residential use. PROVIDED, that any amounts so deducted have been included in gross sales in ITEM 1 of this or a previous return. Your records must substantiate ALL deductions. If you are uncertain as to whether any transaction is deductible, please communicate with the Tax Administrator. Carry total deductions to ITEM 7 of SCHEDULE A.