Payroll Hawaii, Unique Aspects of Hawaii Payroll Law and Practice

The Hawaii State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

Department of Taxation
Withholding Tax
P.O. Box 3827
Honolulu, Hi 96812-3827
808-587-4242
www.state.hi.us/tax/tax.html

Hawaii requires that you use Hawaii form "HW-4, Employee's Withholding Exemption and Status Certificate" instead of a Federal W-4 Form for Hawaii State Income Tax Withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Hawaii cafeteria plans are: not taxable for income tax calculation; taxable for unemployment insurance purposes. 401(k) plan deferrals are: not taxable for income taxes; taxable for unemployment purposes.

In Hawaii supplemental wages are required to be aggregated for the state income tax withholding calculation.

You may not file your Hawaii State W-2s by magnetic media.

The Hawaii State Unemployment Insurance Agency is:

The Department of Labor and Industrial Relations
Unemployment Insurance Division
830 Punchbowl St.
Honolulu, HI 96813
808-586-8970
http://hawaii.gov/labor/

The state of Hawaii taxable wage base for unemployed purposes is wages up to $30, 200.

Hawaii has optional reporting of quarterly wages on magnetic media.

Unemployment records must be retained in Hawaii for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Hawaii State Agency charged with enforcing the state wage and hour laws is:

The Department of Labor and Industrial Relations
Enforcement Division
830 Punchbowl St., Rm. 340
Honolulu, HI 96813
808-586-8777
http://hawaii.gov/labor/wsd/index.shtml

The minimum wage in Hawaii is $6.25 per hour.

The general provision in Hawaii concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.

Hawaii State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

• Employee's name


• Employee's address


• Employee's social security number


• Employer's name


• Employer's address


• Employer's Federal Employer Identification Number (EIN)

• Gross and Net Earnings


• pay period dates


• payment date


• itemized deductions

• When to start Withholding? first pay period within 7 days of mailing


• When to send Payment? Within 5 days of Payday.


• When to send Termination Notice? Immediately


• Maximum Administrative Fee? $2 per payment


• Withholding Limits? Federal Rules under CCPA.

Article Source: http://www.mycontentbuilder.com

Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice. Mr. Read is the author of "Tax and Accounting Issues in Forming a New Business." To find professional payroll services at a budget price go to www.payrollonabudget.com a paperless payroll company. For a full service payroll bureau with CPA's on staff visit www.CustomPayroll.com . See an excerpt of Mr. Read's interviews from William Shatner's "Heartbeat of America" television show on the web sites linked above.

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