What should employers know about the Hawaii State Payroll Taxes?
123PayStubs will be suitable for those who are doing payroll on their own. As 123PayStubs covers all the information required for Hawaii state withholding taxes and provides you with the exact details to keep payroll under your control.
Apart from the federal withholding, employers in Hawaii are also responsible for certain state payroll tax requirements which are listed below.
Hawaii State Minimum Wage Requirements
Employers in the State of Hawaii must pay their employees the state minimum wage rate of $10.10/hr.
Hawaii State New Hire Reporting
All employers must report their newly hired and rehired employees to the Child Support Enforcement Agency (CSEA) within 20 calendar days from the employee’s first day of work. There will be a penalty of $25 for late reporting of new hires.
Employers may report fax or mail the IRS Form W-4.
Businesses including state and local government employers, and non-profit
organizations regardless of the number of employees need to report the new hire.
Filing New Hire Report Form Online
The State of Hawaii has a website for new hire reporting. Employers can report new hires online at the website.
Mail or Fax the New Hire Report Form
Employers can fax a copy of Form W-4 to (808) 692-7001
or mail them to the following address:
Child Support Enforcement Agency
New Hire Reporting
601 Kamokila Blvd., Suite 251
Kapolei, HI 96707
Phone: (808) 692-7029
Hawaii State Withholding Tax
The Hawaii state requires employers to withhold state income taxes from employee's pay. Employees are required to complete the HW-4, Employee’s Withholding Allowance and Status Certificate to calculate withholdings.
- Hawaii does not have any reciprocal agreements with other states of the U.S.
- Hawaii State has no supplemental rate.
Hawaii State Unemployment Insurance TAX (SUI)
- Hawaii SUTA wage base limit for 2020: $48,100
Hawaii SUTA tax rates for 2020: 0.0% to 5.6%
- Hawaii SUTA tax rates for new employers: 2.4%
Hawaii Employment Training Fund assessment/interest payment: 0.01%
Hawaii State Disability Insurance Tax (SDI)
The State of Hawaii mandates the state disability insurance for employers and employees (if opted by employer). Employers in Hawaii have to provide temporary disability insurance for eligible employees to support non-work related injuries and illnesses. Employers can cover the entire cost or withhold up to 0.5% of eligible employees wages. Here is the SDI rate and wage base limit for the current year.
- Hawaii SDI wage base limit for 2020: $1,119.44
Hawaii SDI rate for 2020: 0.50%
Hawaii State Local Taxes
There are no local taxes in the State of Hawaii.
Other Payroll Requirements for Hawaii
- Hawaii Termination Pay: If the employer terminates an employee, the wages or compensation for labor or service earned are due and payable immediately or the next day. However, if the employee resigns the job, the final wages and compensation can be paid on the next regular payday.
- Garnishments: Employers in Hawaii are required to deduct an amount from an employee’s paycheck if they receive a court order from a creditor. This could happen if the employee fails to pay federal and state taxes, child support, defaulted student loans, and unpaid court costs. Employees can choose whether they want to use the state or federal limits on wage garnishments.
- Child Support Garnishment: Remit withholding for child support online or to
Child Support Enforcement Agency
Department of the Attorney General
PO Box 1860
Honolulu, HI 96805-1860
When is the Hawaii state payroll tax payment due?
Hawaii state requires tax payments to be made on a semi-weekly, monthly, or quarterly basis.
However, tax deposits for unemployment insurance fall due each quarter (April 30, July 31, October 31, and January 31) and must be filed to the Hawaii Unemployment Express.
Hawaii State Deposit Requirement
The state of Hawaii requires employers remitting payments electronically from the checking or savings account (free) or using a credit or debit card (fees apply).
Tax Deposit Deadlines
If tax liability is greater than $40,000: Employers are required to deposit taxes on a semi-weekly frequency.
Wednesday: If taxes are withheld for wages paid the immediately preceding Wednesday, Thursday, or Friday
- Friday: If taxes are withheld for wages paid the preceding Saturday, Sunday, Monday, or Tuesday
If tax liability is $5,000 – $40,000: Employers are required to deposit taxes on a monthly frequency, i.e., 15th day of the month following the close of the preceding monthly period.
- If tax liability is less than $5,000: Employers are required to deposit taxes on a monthly frequency, i.e., 15th day of the month following the close of the preceding quarter (April 15, July 15, October 15, January 15).
Also, employers have to deposit unemployment taxes quarterly to the Hawaii Unemployment Insurance using the Hawaii Unemployment Express online portal.
Quarterly Hawaii Payroll Tax Filings
Employers can file the withholding returns electronically through Form HW-14, monthly or quarterly based on the schedule assigned.
Form HI UC-B6 Hawaii Quarterly Wage Contribution Report for unemployment taxes is also required to be filed by employers quarterly through the Hawaii Unemployment Express online portal.
Annual Hawaii Payroll Tax Filings
The state of Hawaii requires employers to file Form HW-3 Annual Withholding Return and Reconciliation on or before the last day of February in the year following the reporting year. This form can also be filed electronically using the Hawaii Department of Taxation’s Internet Portal.
To register as an employer in Hawaii, visit the Hawaii Department of Taxation’s Hawaii Business Express website.
- You can refer to the Hawaii Department of Taxation for more information about state income tax withholdings.
- Visit Hawaii Department of Labor and Industrial Relations for labor laws, unemployment insurance, and temporary disability insurance. You may also refere to the Handbook for Employers for information about unemployment insurance taxes.
123PayStubs is more than a paystub generator.
No matter which part of Hawaii your business operates in, our Hawaii paystub generator will let you create pay stubs for your employees and contractors with accurate tax calculations including all cities like Honolulu, Pearl City, Hilo. You only have to provide a few basic information such as company, employee and salary details and our pay stub generator will calculate all the applicable taxes swiftly based on the information provided. It will take less than 2 minutes to generate a pay stub. Employees and contractors in Hawaii can use the pay stubs as proof of income.