Hawaii Payroll Services

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Hawaii Payroll Tax and Labor Laws

Get your Hawaii State Tax ID Number

Click Here to Obtain State Tax and Unemployment Tax ID

Note: Hawaii is a "Joint Application" State. One application for TWO ID numbers (one for SIT and one for SUI).

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 Wage and Hour Laws

Employers must pay employees covered by Hawaii's minimum wage law at least $10.10 an hour and $9.35 an hour for tipped employees.

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.

Hawaii Payroll for Employers

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 a monthly payment.

Hawaii Unemployment:

Taxable Wage Base ($000s):                        47,400

New Employer Rate (% Taxable Wages)    2.4

Employee Tax Rate (% Taxable Wages)     None

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 a credit against their Hawaii income tax for income taxes paid to another state.

Hawaii Benefits

Hawaii Voting Rights:

Employer Right to Schedule Voting Hours         Yes

Pay Deduction for Voting Time Leave                 Time Off with Pay Limited to 2 Hours

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

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 State Tax Resources

SurePayroll, Inc. and its subsidiaries assume no liability and make no warranties on or for the information contained on these state payroll pages. The information presented is intended for reference only and is neither tax nor legal advice. Consult a professional tax, legal or other advisor to verify this information and determine if and/or how it may apply to your particular situation.

This website contains articles posted for informational and educational value. SurePayroll is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, SurePayroll. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant. If you require legal or accounting advice or need other professional assistance, you should always consult your licensed attorney, accountant or other tax professional to discuss your particular facts, circumstances and business needs.
Accurate as of December 2020