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Payroll Hawaii, Unique Aspects of Hawaii Payroll Law and Practice

The Hawaii State Agency that oversees thereached at 808-692-7029. Hawaii does allow
collection and reporting of State incomecompulsory direct deposit except for State
taxes deducted from payroll checks is:employees hired after 7/1/1998. Hawaii
Department of Taxation Withholding Tax P.O.requires the following information on an
Box 3827 Honolulu, Hi 96812-3827 808-587-4242employee's pay stub: Gross and Net Earnings
Hawaii requires that you use Hawaii formpay period dates payment date itemized
"HW-4, Employee's Withholding Exemption anddeductions Hawaii requires that employee be
Status Certificate" instead of a Federal W-4paid no less often than semimonthly; monthly
Form for Hawaii State Income Tax Withholding.if union contract or director of labor
Not all states allow salary reductions maderelations allows.. Hawaii requires that the
under Section 125 cafeteria plans or 401(k)lag time between the end of the pay period
to be treated in the same manner as the IRSand the payment of wages to the employee not
code allows. In Hawaii cafeteria plans are:exceed seven days; up to 15 if the director
not taxable for income tax calculation;of labor relations allows. Hawaii payroll law
taxable for unemployment insurance purposes.requires that involuntarily terminated
401(k) plan deferrals are: not taxable foremployees must be paid their final pay
income taxes; taxable for unemploymentimmediately or the next working day if
purposes. In Hawaii supplemental wages areimmediately is impossible. The next regular
required to be aggregated for the statepayday if suspended due to a labor dispute or
income tax withholding calculation. You maytemporarily laid off. Voluntarily terminated
not file your Hawaii State W-2s by magneticemployees must be paid their final pay by the
media. The Hawaii State Unemploymentnext regular payday or by mail if employee
Insurance Agency is: The Department of Laborrequests it; immediately if one pay period's
and Industrial Relations Unemploymentnotice is given. Deceased employee's wages up
Insurance Division 830 Punchbowl St.to $2000.00 must be paid to the surviving
Honolulu, HI 96813 808-586-8970 The state ofspouse or adult children (in that order)
Hawaii taxable wage base for unemployedwithin 30 days. Conditions require an
purposes is wages up to $30, 200. Hawaii hasaffidavit of relationship and a receipt.
optional reporting of quarterly wages onEscheat laws in Hawaii require that unclaimed
magnetic media. Unemployment records must bewages be paid over to the state after one
retained in Hawaii for a minimum period ofyear. The employer is further required in
five years. This information generallyHawaii to keep a record of the wages
includes: name; social security number; datesabandoned and turned over to the state for a
of hire, rehire and termination; wages byperiod of five years. Hawaii payroll law
period; payroll pay periods and pay dates;provides for a maximum tip credit against
date and circumstances of termination. Theminimum wage of $0.25. In Hawaii the payroll
Hawaii State Agency charged with enforcinglaws covering mandatory rest or meal breaks
the state wage and hour laws is: Theare only that minors under 16 must have a
Department of Labor and Industrial Relations30-minute meal period after five hours of
Enforcement Division 830 Punchbowl St., Rm.work. There is no provision in Hawaii law
340 Honolulu, HI 96813 808-586-8777 Theconcerning record retention of wage and hour
minimum wage in Hawaii is $6.25 per hour. Therecords therefor it is probably wise to
general provision in Hawaii concerning payingfollow FLSA guidelines. The Hawaii agency
overtime in a non-FLSA covered employer ischarged with enforcing Child Support Orders
one and one half times regular rate afterand laws is: Child Support Enforcement Agency
40-hour week. Hawaii State new hire reportingDepartment of the Attorney General 601
requirements are that every employer mustKamokila Blvd., Ste 251 Kapolei, HI 96707
report every new hire and rehire. The808-587-4250 . Hawaii has the following
employer must report the federally requiredprovisions for child support deductions: When
elements of: Employee's name Employee'sto start Withholding? first pay period within
address Employee's social security number7 days of mailing When to send Payment?
Employer's name Employer's address Employer'sWithin 5 days of Payday. When to send
Federal Employer Identification Number (EIN)Termination Notice? Immediately Maximum
This information must be reported within 20Administrative Fee? $2 per payment
days of the hiring or rehiring. TheWithholding Limits? Federal Rules under CCPA.
information can be sent as a W4 or equivalentPlease note that this article is not updated
by mail, fax or electronically. There is afor changes that can and will happen from
$25.00 penalty for a late report in Hawaii.time to time.
The Hawaii new hire reporting agency can be



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