Payroll Hawaii Unique Aspects of Hawaii Payroll Law and Practice
Below is a MRR and PLR article in category Business -> subcategory Other.
Payroll in Hawaii: Understanding Unique Aspects of Hawaii Payroll Law and Practice
Summary:
Hawaii's payroll system has unique rules and conditions. This guide provides an overview of key aspects, including tax withholding and reporting, unemployment insurance, wage and hour laws, and child support withholding.
Keywords:
Hawaii payroll, tax withholding, unemployment insurance, wage laws, child support
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Tax Withholding and Reporting
In Hawaii, state income taxes deducted from payroll checks are managed by:
Department of Taxation
Withholding Tax
P.O. Box 3827
Honolulu, HI 96812-3827
808-587-4242
[Tax Department Website](http://www.state.hi.us/tax/tax.html)
Key Points:
- Use the Hawaii "HW-4, Employee's Withholding Exemption and Status Certificate," instead of the federal W-4 for state withholding.- Salary reductions under Section 125 cafeteria plans are not taxable for income tax but are for unemployment insurance.
- 401(k) deferrals are treated similarly?"non-taxable for income but taxable for unemployment.
- Supplemental wages must be aggregated for state income tax withholding.
Unemployment Insurance
Managed by:
Department of Labor and Industrial Relations
Unemployment Insurance Division
830 Punchbowl St.
Honolulu, HI 96813
808-586-8970
[Labor Department Website](http://hawaii.gov/labor/)
Key Points:
- The taxable wage base is wages up to $30,200.- Optional quarterly wage reporting on magnetic media is available.
- Unemployment records must be kept for at least five years, including employee details and wage information.
Wage and Hour Laws
Enforced by:
Department of Labor and Industrial Relations
Enforcement Division
830 Punchbowl St., Room 340
Honolulu, HI 96813
808-586-8777
[Enforcement Website](http://hawaii.gov/labor/wsd/index.shtml)
Key Points:
- Minimum wage is set at $6.25 per hour.- Overtime for non-FLSA employers must be paid at 1.5 times the regular rate after 40 hours.
- New hires must be reported within 20 days, including all federal information like social security number and employer details.
- Compulsory direct deposit is allowed except for state employees hired after July 1, 1998.
- Pay stubs must include gross and net earnings, pay period dates, payment date, and itemized deductions.
Payment Regulations
- Employees must receive payment at least semi-monthly, with a maximum seven-day lag after the pay period ends.
- Involuntarily terminated employees should receive final pay immediately or by the next working day.
- Voluntarily terminated employees should receive final pay by the next payday or immediately if notice is given.
- Unclaimed wages must be surrendered to the state after one year, with records retained for five years.
Child Support Withholding
Managed by:
Child Support Enforcement Agency
Department of the Attorney General
601 Kamokila Blvd., Suite 251
Kapolei, HI 96707
808-587-4250
[Child Support Website](http://hawaii.gov/ag/csea)
Key Points:
- Withholding must start in the first pay period within seven days of mailing.- Payments are due within five days of payday.
- Termination notices must be sent immediately, with a maximum administrative fee of $2 per payment, adhering to federal withholding limits under CCPA.
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Please be aware that laws and regulations are subject to change. It’s crucial to stay updated with the latest information.
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