How do I register as a household employer in Rhode Island?

Start with a federal EIN, then register with Rhode Island for each account that applies to you. Apply for a federal EIN at IRS.gov. It is free and takes about 15 minutes. Register with Rhode Island's unemployment insurance agency once you cross $1,000 in any calendar quarter. Most states want this within 20 days of becoming a covered employer. If you will withhold Rhode Island income tax at your nanny's request, register separately with the state revenue department for a withholding account. Register for Rhode Island Temporary Disability Insurance (TDI), usually a separate account from unemployment insurance.

What payroll taxes does Rhode Island charge for a household employee?

Federal FICA and FUTA, Rhode Island SUTA, and anything else below that applies to you. Federal FICA: 7.65% employer share, matched by your nanny. Federal FUTA: 6.0% on the first $7,000, an effective 0.6% after the state SUTA credit. Rhode Island SUTA: 0.9% - 9.4% on a state-specific wage base, with a separate rate for new employers. State income tax withholding is optional unless your nanny elects it on the state W-4. Plus Rhode Island Temporary Disability Insurance (TDI) contributions, usually a small percentage of wages and mostly employee-funded.

What are Rhode Island's minimum wage and overtime rules for nannies?

At least $16.00 an hour for a nanny in Rhode Island. That is Rhode Island's own minimum wage, above the federal $7.25 floor. Some cities and counties may set a higher floor, so check your locality before you set a rate. Overtime is 1.5x pay for hours over 40 in a week, under the FLSA. Live-in nannies are exempt from FLSA overtime, but not from minimum wage. Source: US DOL, State Minimum Wage Laws.

Can I require my nanny to use direct deposit in Rhode Island?

No. Rhode Island does not let an employer require direct deposit, so your nanny has to opt in. Get a written, signed authorization anyway. Federal Regulation E sets the floor, and Rhode Island adds an employee-consent rule on top.

What records do I need to keep for a Rhode Island household employee?

Keep them for at least 4 years after the return reporting the tax was due, or the tax was paid, whichever is later. Timesheets, pay stubs, W-2 copies, payment confirmations and SUTA filings. Rhode Island follows the federal baseline, so 4 years covers both. Most household-employer audits open with the IRS or a state agency asking for exactly these records, so keep them with your tax filings. Source: IRS Publication 926.

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Rhode Island Nanny Tax Guide

Rhode Island requires both Temporary Disability Insurance and Temporary Caregiver Insurance (paid family leave). Both programs are funded through employee contributions.

Rhode Island household employer quick facts

Applies in Rhode Island

State income tax withholding
State unemployment
Disability insurance
Paid family leave

Minimum Wage

$16.00/hour

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SUTA Rate Range

0.9% - 9.4%

New employers: 1.21% on the first $30,800 (2026). Rhode Island Department of Labor and Training

Key things to know

Progressive state income tax (3.75% - 5.99%)
Temporary Disability Insurance required
Temporary Caregiver Insurance (paid leave)
State minimum wage is $16.00/hour

Rhode Island Employer Requirements

State Income Tax

Rhode Island uses progressive tax brackets: 3.75% to $82,050, 4.75% to $186,350, and 5.99% above. Standard deduction is $11,250 (single).

Temporary Disability Insurance (TDI)

Employees contribute 1.1% of wages for TDI. This provides partial wage replacement for non-work-related illness, injury, or pregnancy.

Temporary Caregiver Insurance (TCI)

TCI is included in the TDI contribution. It provides up to 8 weeks of paid leave in 2026 for bonding with a new child or caring for a seriously ill family member.

State Unemployment Insurance

Employers pay SUI tax on the first $30,800 of wages. The 2026 new-employer rate is 1.21% including the Job Development Assessment, with rates ranging from 0.9% to 9.4% based on experience.

Workers' Compensation

Rhode Island doesn't require workers' compensation for household employers, since employers of domestic-service employees are exempt. It's still worth considering: it protects your employee if they're injured at work, and protects you from potential liability.

Rhode Island household employer questions

What will it cost?

Wondering what you'll actually owe as a Rhode Island employer? Adjust the numbers below to get a quick estimate of your annual tax obligations.

This guide is for informational purposes only and should not be considered legal or tax advice. Tax laws change frequently. Always verify current requirements with your state's tax agency or consult with a qualified tax professional.

Verified accurate as of June 2026Sources: Rhode Island tax agency, IRS Publication 926

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Rhode Island Nanny Tax Guide

Rhode Island household employer quick facts

Rhode Island Employer Requirements

State Income Tax

Temporary Disability Insurance (TDI)

Temporary Caregiver Insurance (TCI)

State Unemployment Insurance

Workers' Compensation

Rhode Island household employer questions

What will it cost?

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