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Rhode Island collects three kinds of payroll taxes as "Employer Taxes" -- UI, JDF, and TDI. The first two are paid by the employer and rates can vary company to company. This question is NOT about those. TDI, on the other hand, while technically a tax paid by the employee, is also collected as part of the Employer Tax payroll taxes and filed/paid quarterly by the employer, is a single rate for every company. This rate was previously 1.2% and for 2025 will now be 1.3%.
Quickbooks Online Payroll is supposed to update this automatically. This is no place in the user interface for me to update this and it's a universal change that should be applied to all companies with Rhode Island employees anyway.
I need to run payroll for January and this rate is still showing the old 1.2%. I have tried talking to Quickbooks customer service reps multiple times and they never seem to understand the question and never can get me a straight answer other than to be patient. This is absurd; the rate change was effective Jan 1st.
When can we expect to see this update reflected in the software?
I fully recognize how important it is to ensure that payroll is handled accurately, especially when it comes to applying the correct tax rate for your state, Interest.
At the moment, we don't have any specific time frame for when QuickBooks Online will implement the necessary updates to the tax rate for TDI. Rest assured, if this will be implemented, QuickBooks will automatically calculate the TDI rate.
I want to assure you that your concern is being taken seriously by our team and will keep you updated on any developments as they arise.
Moreover, if you want to follow up on your case, you can contact our support team again.
For a deeper analysis of your payroll totals, including employee taxes and contributions, feel free to read this article: Create a payroll summary report in QuickBooks.
I'm still ready to back you up if you have further questions regarding the updates of TDI rate in QuickBooks. Just utilize the Reply button below and I'll come back as soon as I can.
So when I inevitably have to run payroll for January and the outdated rate is still in Quickbooks, the software will withhold the wrong amount of money. Then, later, when Quickbooks files and pays this to the state of Rhode Island, I will be underpaying and then will potentially face penalties for underpaying the required rate. Does Quickbooks plan to pay these fees on my behalf? Will Quickbooks handle the extra hassle and headache of filing amendments or paying overdue taxes on my behalf because they were incorrectly withheld by Quickbooks' software itself?
I doubt it. And this is not the first example of similar nonsense, for a platform that is meant to serve all types of businesses, I'm beyond frustrated and planning to switch to another product this year. Thanks for nothing.
Hey Quickbooks - any updates on this? You say:
"At the moment, we don't have any specific time frame for when QuickBooks Online will implement the necessary updates to the tax rate for TDI. Rest assured, if this will be implemented, QuickBooks will automatically calculate the TDI rate."
It's now February. I've run January payroll, where the system continued to withhold the old incorrect 1.2%. I'm now officially under-withholding the required tax from my Rhode Island employee's paycheck, which means my company will become liable for both the underpaid tax and additional fees, come time for quarterly and annual filing.... and yet I have ZERO recourse for updating this in Quickbooks to begin withholding the correct new rate.
These changes were published IN DECEMBER. When can I expect to see this tax rate set to the correct 2025 rate?
Your experience is our top priority, interesting1234. We recognize the significance of accurately applying the correct tax rate for your state. I'm here to ensure this matter will be addressed promptly.
Currently, there is no specific timeframe for when the updates to the TDI tax rate will be implemented in QuickBooks Online (QBO). However, we assure you that we are diligently working on these updates to ensure compliance with the new tax regulations.
Rest assured; QuickBooks will manage everything effectively to ensure your tax calculations align with state requirements. We will keep all users informed as soon as the updates are live.
Additionally, you can visit this article to learn how to customize the report using the available options to view your payroll totals, including employee taxes and contributions: Create a payroll summary report in QuickBooks.
You can always return to this thread if you have further concerns about the updates to the TDI tax rate in QBO. Feel free to leave a Reply below, and we'll be glad to extend our help anytime. Be safe!
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