Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 20 - TAX CREDITS/DEDUCTIONS
Part 15 - Tax Incentives for Employers (280-RICR-20-20-15)
Section 280-RICR-20-20-15.6 - Employee Tax Credit Examples
Current through September 18, 2024
A. Example 1 - Calendar year Employer
John Doe 1998 W-2 Total Wages for his Employer |
$12,000 |
Incentive rate (40%) |
X .40 |
Total |
$4,800 |
B. Example 2 - Calendar Year Employer:
04/28/98 through 12/31/98 = |
247 days |
01/01/98 through 04/28/99 = |
118 days |
Total |
365 days |
1998 Wages Total = |
$ 7,400.00 |
1999 Wages 118/365 x $12,600 = |
4,073.42 |
Total Eligible Wages |
$11,073.42 |
Incentive Rate (40%) |
X .40 |
Total |
$ 4,589.37 |
C. Example 3 - Fiscal Year Employer:
D. Example 4 - Fiscal year Employer:
Jane Smith 1998 W-2 wages from this Employer |
$4,580.00 |
Jane Smith 1999 W-2 wages from this Employer |
7,050.00 |
Measure Calculation |
|
07/30/98 through 12/31/98 = |
154 days |
01/1/99 through 07/30/99 = |
211 days |
Total |
365 days |
1998 Wages from this Employer |
$4,580.00 |
1999 Wages 211/365 x $7050.00 = |
4,075.48 |
Total Eligible Wages |
$8,555.48 |
Incentive Rate (40%) |
X .40 |
Total |
$3,462.19 |