Title 44
Taxation

Chapter 30
Personal Income Tax

Part V
Withholding of Tax

R.I. Gen. Laws 44-30-71.4



 44-30-71.4.  Employee leasing companies — Payroll companies.


(a) Employee leasing company certification. 

(1) Every "employee leasing company," defined in this section as any individual, firm, partnership or corporation engaged in providing workers to employers or firms under a contract or leasing arrangement, shall, as a condition of doing business in this state, be certified by the division of taxation each year, that the company has complied with the withholding provisions of chapter 30 of this title.

(2) Employee leasing companies must apply to the division of taxation during the month of July of each year on forms prescribed by the tax administrator for a certificate executed by the tax administrator certifying that all taxes withheld from employees, or subject to withholding from employees have been remitted to the division of taxation including the withholding provisions of chapter 30 of this title and the contribution, interest, and penalty provisions pursuant to the Employment Security Act, chapters 42 — 44 of title 28, and the Temporary Disability Insurance Act, chapters 39 — 41 of title 28 have been remitted to the department of labor and training. No certificate shall be issued if taxes subject to withholding or contributions have not been withheld and remitted.

(3) No employee leasing firm may conduct business in this state without the certification prescribed in subdivision (2) of this subsection. Any employer or firm that engages any employee leasing company that is not certified by the tax administrator shall be jointly and severally liable for the taxes required to be withheld and remitted under 44-30-71 or chapters 39 — 44 of title 28.

(b) Payroll companies — Joint liability.  Every payroll company, herein defined as any individual, firm, partnership or corporation engaging in providing payroll services to employers which services include the withholding of tax including the withholding provisions of chapter 30 of this title and the contribution, interest, and penalty provisions pursuant to the Employment Security Act, chapters 42 — 44 of title 28, and the Temporary Disability Insurance Act, chapters 39 — 41 of title 28 from employee wages and which receives moneys from a customer or employer for Rhode Island withholding from the wages of the customer's employees, and who fails to remit said withholding to the division of taxation or contributions to the department of labor and training on a timely basis, shall be jointly and severally liable with the customer or employer for said withholdings.

History of Section.
P.L. 1992, ch. 133, art. 42, 1; P.L. 2019, ch. 88, art. 5, 12.