State Form RI W-3

Employer’s Annual Summary of Withholding Tax

The RI-W3, “Employer’s Annual Summary of Withholding Tax”, is specific to the state of Rhode Island. Employers use it to report and reconcile the total state income tax they have withheld from their employees during the year. Here are the main reasons you need to file a RI-W3:

State Compliance

As with many U.S. states, Rhode Island requires employers to report the total amount of state income tax withheld from employees’ wages during a calendar year. The RI-W3 is the form designated for this annual reconciliation.

Verification

The Rhode Island Division of Taxation uses the information provided on the RI-W3 to verify the amount of tax an employer has withheld and remitted to the state. This ensures that employers are correctly withholding the required amount of state income tax from their employees’ wages.

Submission with Wage Statements

Alongside the RI-W3, employers are also required to submit copies of W-2 forms for all employees from whom Rhode Island income tax was withheld. The RI-W3 serves as a summary and reconciliation of all the withholding amounts reported on those individual W-2 forms.

Record Keeping

Submitting a RI-W3 helps maintain a clear record of withholding amounts, which can be essential for both the state’s administrative purposes and for employers’ own record-keeping.

Avoiding Penalties

Filing the RI-W3 timely and accurately helps employers avoid potential penalties and interest that may be imposed for non-compliance or late submissions.

Supporting Employee Tax Filings

By reconciling and reporting the withholding amounts, employers are assisting the state in efficiently processing individual income tax returns for Rhode Island residents.

It’s essential to file the RI W-3 to remain in compliance with state’s tax laws and regulations when you’ve made payments that require information returns and have had Rhode Island income tax withheld. Not filing or late filing can lead to penalties and interest charges.