Skip to main content
Find a Lawyer

Rhode Island General Laws Title 44. Taxation § 44-14-14.5. Payroll factor

Current as of January 01, 2022 | Updated by FindLaw Staff

(a) General. The payroll factor is a fraction, the numerator of which is the total amount paid in this state during the taxable year by the taxpayer for compensation and the denominator of which is the total compensation paid both within and outside of this state during the taxable year. The payroll factor shall include only that compensation which is included in the computation of the apportionable income tax base for the taxable year.

(b) When compensation paid in this state. Compensation is paid in this state if any one of the following tests, applied consecutively, is met:

(1) The employee's services are performed entirely within this state.

(2) The employee's services are performed both within and outside of the state, but the service performed outside of the state is incidental to the employee's service within the state. The term “incidental” means any service which is temporary or transitory in nature, or which is rendered in connection with an isolated transaction.

(3) If the employee's services are performed both within and outside of this state, the employee's compensation will be attributed to this state:

(i) If the employee's principal base of operations is within this state;

(ii) If there is no principal base of operations in any state in which some part of the services is performed, but the place from which the services are directed or controlled is in this state; or

(iii) If the principal base of operations and the place from which the services are directed or controlled are not in any state in which some part of the service is performed, but the employee's residence is in this state.

Back to chapter list
Previous part of code Next part of code
Back to chapter list

Cite this article: FindLaw.com - Rhode Island General Laws Title 44. Taxation § 44-14-14.5. Payroll factor - last updated January 01, 2022 | https://codes.findlaw.com/ri/title-44-taxation/ri-gen-laws-sect-44-14-14-5/

Read this complete Rhode Island General Laws Title 44. Taxation § 44-14-14.5. Payroll factor on Westlaw

FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.

Was this helpful?

Search all Rhode Island Codes

Welcome to FindLaw's Cases & Codes

A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.

Go to Learn About the Law

Latest Blog Posts

For Legal Professionals

Learn About the Law

Get help with your legal needs

FindLaw’s Learn About the Law features thousands of informational articles to help you understand your options. And if you’re ready to hire an attorney, find one in your area who can help.

Go to Learn About the Law

Need to find an attorney?

Search our directory by legal issue

Enter information in one or both fields (Required)

    More Options
    Copied to clipboard