Rhode Island Code of Regulations
Title 280 - Department of Revenue
Chapter 20 - Division of Taxation
Subchapter 55 - Personal Income Tax
Part 8 - Lottery and Pari-Mutuel Winnings and Prizes (280-RICR-20-55-8)
Section 280-RICR-20-55-8.8 - Payors' Responsibilities

1. For the purpose of this regulation, a "payor" means and includes the Director of Lotteries (R.I. Gen. Laws § 42-61-1 et seq.), a third-party annuity or other contractual payor for the Rhode Island Lottery and every Rhode Island licensee conducting or operating events upon which parimutuel betting is allowed.

1. Whenever Federal income tax withholding and/or notification is required by 26 C.F.R. § 31.3402(q)-1 (2018), a corresponding withholding and/or notification is required for Rhode Island personal income tax purposes.

2. Additionally, provisions for remittance and reconciliation by the payor similar to those required for Federal purposes are required for Rhode Island purposes.

1. If Federal income tax is withheld from a payment, then the payor must withhold an amount of Rhode Island income tax equal to the amount of Federal tax withheld multiplied by the Rhode Island personal income tax withholding rate in effect on the date of the payment.

1. Payors withholding Rhode Island income tax from winners' payments must remit the Rhode Island withholdings to the Division of Taxation at the same time as, but separate from, remittance for the payors' employees' withholdings.

2. If the payor has no employees for whom Rhode Island withholding is made, the payor will remit to the Division of Taxation on the same basis as other remittance of income taxes withheld then in effect.