Payroll Hawaii, Unique Aspects of Hawaii Payroll Law and Practice

The Hawaii State Agency that oversees theagency can be reached at 808-692-7029. Hawaii
collection and reporting of State income taxesdoes allow compulsory direct deposit except for
deducted from payroll checks is: Department ofState employees hired after 7/1/1998. Hawaii
Taxation Withholding Tax P.O. Box 3827 Honolulu,requires the following information on an
Hi 96812-3827 808-587-4242 Hawaii requires thatemployee's pay stub: Gross and Net Earnings pay
you use Hawaii form "HW-4, Employee'speriod dates payment date itemized deductions
Withholding Exemption and Status Certificate"Hawaii requires that employee be paid no less
instead of a Federal W-4 Form for Hawaii Stateoften than semimonthly; monthly if union contract
Income Tax Withholding. Not all states allow salaryor director of labor relations allows.. Hawaii requires
reductions made under Section 125 cafeteria plansthat the lag time between the end of the pay
or 401(k) to be treated in the same manner asperiod and the payment of wages to the
the IRS code allows. In Hawaii cafeteria plans are:employee not exceed seven days; up to 15 if the
not taxable for income tax calculation; taxable fordirector of labor relations allows. Hawaii payroll law
unemployment insurance purposes. 401(k) planrequires that involuntarily terminated employees
deferrals are: not taxable for income taxes;must be paid their final pay immediately or the
taxable for unemployment purposes. In Hawaiinext working day if immediately is impossible. The
supplemental wages are required to benext regular payday if suspended due to a labor
aggregated for the state income tax withholdingdispute or temporarily laid off. Voluntarily
calculation. You may not file your Hawaii Stateterminated employees must be paid their final pay
W-2s by magnetic media. The Hawaii Stateby the next regular payday or by mail if
Unemployment Insurance Agency is: Theemployee requests it; immediately if one pay
Department of Labor and Industrial Relationsperiod's notice is given. Deceased employee's
Unemployment Insurance Division 830 Punchbowlwages up to $2000.00 must be paid to the
St. Honolulu, HI 96813 808-586-8970 The state ofsurviving spouse or adult children (in that order)
Hawaii taxable wage base for unemployedwithin 30 days. Conditions require an affidavit of
purposes is wages up to $30, 200. Hawaii hasrelationship and a receipt. Escheat laws in Hawaii
optional reporting of quarterly wages on magneticrequire that unclaimed wages be paid over to the
media. Unemployment records must be retained instate after one year. The employer is further
Hawaii for a minimum period of five years. Thisrequired in Hawaii to keep a record of the wages
information generally includes: name; social securityabandoned and turned over to the state for a
number; dates of hire, rehire and termination;period of five years. Hawaii payroll law provides
wages by period; payroll pay periods and payfor a maximum tip credit against minimum wage
dates; date and circumstances of termination. Theof $0.25. In Hawaii the payroll laws covering
Hawaii State Agency charged with enforcing themandatory rest or meal breaks are only that
state wage and hour laws is: The Department ofminors under 16 must have a 30-minute meal
Labor and Industrial Relations Enforcement Divisionperiod after five hours of work. There is no
830 Punchbowl St., Rm. 340 Honolulu, HI 96813provision in Hawaii law concerning record retention
808-586-8777 The minimum wage in Hawaii isof wage and hour records therefor it is probably
$6.25 per hour. The general provision in Hawaiiwise to follow FLSA guidelines. The Hawaii agency
concerning paying overtime in a non-FLSAcharged with enforcing Child Support Orders and
covered employer is one and one half timeslaws is: Child Support Enforcement Agency
regular rate after 40-hour week. Hawaii StateDepartment of the Attorney General 601
new hire reporting requirements are that everyKamokila Blvd., Ste 251 Kapolei, HI 96707
employer must report every new hire and rehire.808-587-4250 . Hawaii has the following provisions
The employer must report the federally requiredfor child support deductions: When to start
elements of: Employee's name Employee'sWithholding? first pay period within 7 days of
address Employee's social security numbermailing When to send Payment? Within 5 days of
Employer's name Employer's address Employer'sPayday. When to send Termination Notice?
Federal Employer Identification Number (EIN) ThisImmediately Maximum Administrative Fee? $2 per
information must be reported within 20 days ofpayment Withholding Limits? Federal Rules under
the hiring or rehiring. The information can be sentCCPA. Please note that this article is not updated
as a W4 or equivalent by mail, fax orfor changes that can and will happen from time to
electronically. There is a $25.00 penalty for a latetime.
report in Hawaii. The Hawaii new hire reporting