Are Employee Contributions to Benefit Plans subject to Rhode Island Employment Taxes?
A. Employee contributions to retirement plans (such as 401K plans), medical insurance or disability insurance plans and Section 125 cafeteria plans are excluded from the definition of wages under the RI Employment Security and Temporary Disability Insurance Acts. Therefore, those contributions should not be included as either total or taxable wages subject to Employment Security, Temporary Disability Insurance and Job Development Fund taxes.