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Rhode Island TDI and JDF Taxes

Overview

Rhode Island employers must manage two important payroll taxes: Temporary Disability Insurance (TDI) Tax and Job Development Fund (JDF) Tax. This guide explains how ProPay handles these Rhode Island-specific taxes.

Note: Tax rates and wage bases are updated annually by the Rhode Island Department of Labor and Training. Always verify current rates at the start of each calendar year.

Temporary Disability Insurance (TDI) Tax

What is TDI Tax?

TDI tax funds benefits for workers unable to work due to non-work-related injury or illness. Employees pay this tax through payroll deductions.

2026 TDI Rates and Wage Base

  • TDI taxable wage base: $100,000 (annual)
  • TDI contribution rate: 1.1%
  • Paid by: Employees (through payroll deduction)

The TDI taxable wage base is equal to the annual earnings needed by an individual to qualify for the maximum weekly benefit rate.

Official Resource: https://dlt.ri.gov/press-releases/2026-tax-rates-unemployment-insurance-and-temporary-disability-insurance

Employer Responsibilities

Employers must:

  • Make required deductions from workers' earnings
  • Forward all TDI withholdings to the Employer Tax Section quarterly
  • Submit TDI withholdings along with Employment Security, Job Development Fund, and Reemployment Fund taxes

Configuring TDI in ProPay

Default TDI Rate

ProPay automatically programs the default TDI rate each year.

  1. To review the current default rate:
    • Go to Client Functions > Setup > System Setup Defaults.
    • Verify the TDI rate is set correctly (1.1% for 2026).

    If Employer Pays TDI on Behalf of Employees

    Some employers choose to pay the TDI tax for their employees rather than withholding it.

    1. Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals).
    2. In the SDI section, make the appropriate changes to indicate employer-paid TDI.
    3. Click Save.

    Job Development Fund (JDF) Tax

    What is JDF Tax?

    JDF tax supports the Rhode Island Human Resource Investment Council (HRIC), Employment Services, and Unemployment Insurance activities. The HRIC funds projects designed to improve and upgrade workforce skills.

    JDF Tax Components

    The total JDF tax rate is 0.29%, comprised of:

    1. HRIC Assessment: 0.21%
      • Funds workforce improvement projects
      • Offset by a 0.21% reduction in each employer's Employment Security tax rate (resulting in no net tax increase)
      1. Job Development Adjustment: 0.08%
        • Supports additional employment and training programs

        Total JDF Tax Rate: 0.29% (0.21% + 0.08%)

        Paid by

        Employers pay JDF tax. This is an employer-only tax, not withheld from employee wages.

        Configuring JDF Tax in ProPay

        1. Go to Employer > Employer Setup > Screen 1 (General Information).
        2. Enter the JDF tax rate (0.29%) in the training tax field.
        3. Click Save.

        Troubleshooting

        Issue: TDI Rate Not Updating Automatically

        Solution:

        1. Check that your ProPay version is up-to-date
        2. Verify the system date is correct
        3. Go to Client Functions > Setup > System Setup Defaults to manually review and confirm the current rate
        4. If the issue persists, contact Paysoft support

        Issue: JDF Tax Not Calculating Correctly

        Solution:

        1. Go to Employer > Employer Setup > Screen 1 (General Information) and ensure the correct rate (0.29%) is entered in the training tax field
        2. Verify the employee's wage base is correct
        3. Check that the employer is properly set up as a Rhode Island employer
        4. If the problem continues, contact Paysoft support

        Issue: TDI Showing as Employer Tax

        Solution: TDI is an employee-paid tax by default. If it's showing as an employer tax:

        1. Go to Employer > Employer Setup > Screen 3 (Tax Exemptions and Benefit Accruals) and check the SDI section.
        2. Verify you haven't inadvertently selected employer-paid TDI.
        3. Correct the setting if necessary

        Important Notes

        • TDI is an employee-paid tax (unless the employer chooses to pay on behalf of employees)
        • JDF is an employer-paid tax
        • Both taxes are reported and remitted quarterly to the Rhode Island Department of Labor and Training
        • The HRIC assessment is offset by a reduction in the Employment Security tax rate, so it does not increase the total tax burden

        Quarterly Reporting

        Rhode Island employers must report and remit TDI and JDF taxes quarterly along with unemployment insurance contributions.

        Quarterly Due Dates:

        Quarter Period Due Date
        1st Quarter January - March April 30
        2nd Quarter April - June July 31
        3rd Quarter July - September October 31
        4th Quarter October - December January 31

        Additional Resources

        Related Topics

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