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Hawaii Payroll

Did you know that Hawaii requires employers to withhold state income tax from the wages of residents working in other states, even if the other state requires withholding on the same wages?

Hawaii Income Tax Withholding

Hawaii requires employers to withhold state income tax from their employees' wages and to remit the amounts withheld to the Department of Taxation.

Every employer that has one or more employees in Hawaii must withhold income tax from the wages of both resident and nonresident employees for services performed in Hawaii. However, residents may receive credit against their Hawaii income tax for income taxes paid to another state.

Hawaii Benefits

Temporary Disability Insurance:
Covered employers must provide disability insurance to their employees through private or self-insurance. Up to half the cost of premiums may be withheld from employee wages.

Hawaiian employers with one or more employees during any day are subject to the temporary disability law. Coverage applies to service performed for wages under any contract of hire, written or oral, express or implied, and includes service in interstate commerce. Agricultural employment and service for a foreign government are expressly included in temporary disability coverage. Among work excluded from coverage are services for which temporary disability compensation is payable under a federal program and services of real estate salespersons and brokers compensated by commission.

"Injury or sickness" means accidental injury, disease, infection, or illness. Sickness includes the total inability of an employee to perform the duties of her employment because of pregnancy or its termination.

Hawaii Voting Rights:

Employer Right To
Schedule Voting Hours Pay Deduction For
Voting Time Leave

Yes Time Off with Pay
Limited to 2 Hours

Hawaii requires employers, under certain conditions, to allow employees sufficient leave time to vote.

Employees must be given two hours of leave time to vote, excluding lunch hours and rest periods. If employees have two hours outside of their work shifts while the polls are open, employers do not have to allow additional time off.

Hawaii Compensation

Employers must pay employees covered by Hawaii's minimum wage law at least $7.25 an hour.

All employees are covered except for:

those subject to the federal minimum wage if the federal rate is higher than the state minimum wage;
those with guaranteed monthly salaries of $2,000;
workers in coffee harvesting operations;
agricultural workers if their employers have fewer than 20 employees;
those employed in bona fide executive, administrative, supervisory, or professional capacities;
outside salespersons or collectors;
those in the fish or aquatic farming industry prior to the first processing;
workers on a ship or vessel that have merchant mariners documents issued by the U.S. Coast Guard; and
automobile or truck salespersons for licensed dealers.

Employers can pay tipped employees (those who receive more than $20 a month in tips) 25 cents an hour less than the minimum wage as long as the combined wages and tips equal at least 50 cents an hour more than the minimum wage.

Hawaii Payroll

Employers covered by Hawaii's wage payment law must pay wages at least twice in a calendar month and not more than seven days following the close of a pay period. Employers can pay wages once a month if the majority of employees in a collective bargaining unit elect for monthly payment.

Hawaii Unemployment:

Taxable Wage Base
($000s) New Employer Rate
(% Taxable Wages) Employee Tax Rate
(% Taxable Wages) Period Effective

35,300 1.9 None Calendar Year 2007

Helpful Links for Hawaii Payroll

Hawaii Department of Taxation
P.O. Box 259
Honolulu, Hawaii 96809
(808) 587-4242
Hawaii Department of Labor and Industrial Relations
830 Punchbowl Street
Honolulu, Hawaii 96813
(808) 586-9070

Hawaii Department of Taxation

Hawaii Laws

Hawaii Tax Forms

Back to State Tax Resources

Hawaii Payroll Service

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Employer Right To Schedule Voting Hours	Pay Deduction For Voting Time Leave
Yes	Time Off with Pay Limited to 2 Hours

Taxable Wage Base ($000s)	New Employer Rate (% Taxable Wages)	Employee Tax Rate (% Taxable Wages)	Period Effective
35,300	1.9	None	Calendar Year 2007