Hawaii PayStub Requirements and Paycheck Laws for Employers
Before distributing pay stubs to employees and contractors in Hawaii, it's essential to be well-versed in the state's specific regulations and requirements.
This comprehensive guide elucidates the pertinent laws and regulations that employers in Hawaii must adhere to when managing payroll and furnishing pay stubs.
Pay stub regulations in Hawaii
1. Are pay stubs required by law in Hawaii?
Employers in Hawaii must provide their employees with pay stubs every payday.
2. How often do you need a pay stub in Hawaii?
You will need to pay your employees monthly or semimonthly. As pay stubs are mandatory in Hawaii, you will need to provide pay stubs every time you pay your employees.
3. What information can be included on a pay stub in Hawaii?
The following information must be included in employee pay stubs:
- Employee information such as name, last 4 digits of social security number, and address
- Employer information such as name, employer identification number (EIN), and address
- The number of regular and overtime hours worked
- Rate of pay
- Gross wages
- Deductions for taxes
- Other deductions authorized by employees
- Beginning and ending dates of the pay period
4. Does Hawaii have a state income tax?
Yes, state income taxes and unemployment taxes are applicable to employees in the state of Hawaii.
5. Are there any other taxes applicable to Hawaii?
No. There are no local taxes in the state of Hawaii.
Information needed to generate pay stubs
To provide employees with accurate pay stubs, the information below is required.
- Employee’s SDI applicable status and percentage of SDI tax
- Employee’s exemption status from state withholding
- Filing status, total allowances, and additional state withholding amount
Hawaii wage and hour laws
In Hawaii, employers are required to follow wage and hour regulations ensuring that non-exempt employees receive fair compensation, including at least minimum wage, proper payment for overtime work, adequate meal and rest breaks, and appropriate accrual of paid time-off benefits.
In Hawaii, these regulations encompass a broad spectrum of employment law issues.
Hawaii Minimum wage
In Hawaii, businesses are legally obligated to ensure their employees are paid at least the hourly minimum wage mandated by state regulations.
As of 2024, the basic minimum wage rate stands at $14.00 per hour.
However, employees earning a guaranteed monthly compensation of $2,000 or more are exempt from both the state minimum wage and overtime law.
Domestic service workers are included in Hawaii's minimum wage and overtime requirements.
It's important to note that Hawaii's law does not cover employment already subject to the federal Fair Labor Standards Act unless the state wage rate surpasses the federal rate.
Overtime pay
In Hawaii, overtime pay is triggered when an employee works beyond 40 hours within a single workweek. Working more than 8 hours in a day does not automatically qualify for overtime, except in cases of work performed on State or county public works construction projects.
Hawaii meal break and rest break
Employers in Hawaii are not legally required to provide meal and rest breaks for their employees.
Paid time off and leave
In Hawaii, employers are obligated to offer employees a range of leave benefits, which include both mandatory and optional provisions.
| Required Leave | Non-Required leave | |
|---|---|---|
| paid | Unpaid | Paid or Unpaid |
| Voting leave - 2 hours of paid time off | Employees in Hawaii can qualify for up to four weeks of unpaid family leave annually for childbirth, adoption, or to care for a sick family member. Additionally, employers might need to offer unpaid leave in compliance with the federal Family and Medical Leave Act. | Vacation leave |
| Jury duty leave | Bereavement leave | |
| Military leave | Holiday leave | |
| Sick leave | ||
Hawaii State payroll taxes 2024
In Hawaii, payroll taxes are classified into the following categories:
- Hawaii Personal Income Tax(PIT)
- Hawaii State Unemployment Insurance (UI)
- Hawaii Temporary Disability Insurance (TDI)
Hawaii Personal Income Tax(PIT)
Hawaii's state personal income tax rates fluctuate based on an individual's filing status and income level, which can be categorized as Single, Married Filing Separately, Married Filing Jointly, or Head of Household.
For the Taxable Year 2024, the Hawaii individual income tax rate is determined based on various factors, including filing status and income level.
For Single filers or those Married/Registered Domestic Partners filing separately, Hawaiiy's income tax brackets and rates for the Taxable Year 2024 are as follows:
| If the Hawaii taxable income | The tax is |
|---|---|
| Over $0 but not over $2,400 | 1.4% of your income |
| Over $2,400 but not over $4,800 | $34 + 3.2% of the excess of $2,400 |
| Over $4,800 but not over $9,600 | $110 + 5.5% of the excess of $4,800 |
| Over $9,600 but not over $14,400 | $374 + 6.4% of the excess of $9,600 |
| Over $14,400 but not over $19,200 | $682 + 6.8% of the excess of $14,400 |
| Over $19,200 but not over $24,000 | $1,008 + 7.2% of the excess of $19,200 |
| Over $24,000 but not over $36,000 | $1,354 + 7.6% of the excess of $24,000 |
| Over $36,000 but not over $48,000 | $2,266 + 7.9% of the excess of $36,000 |
| Over $48,000 but not over $150,000 | $3,214 + 8.25% of the excess of $48,000 |
| Over $150,000 but not over $175,000 | $11,629 + 9% of the excess of $150,000 |
| Over $175,000 but not over $200,000 | $13,879 + 10% of the excess of $175,000 |
| Over $200,000 | $16,379 + 11% of the excess of $200,000 |
For Married/Registered Domestic Partners filing jointly and Qualified Widow(er)s, Hawaii's income tax brackets and rates for the Taxable Year 2024 are as follows:
| If the Hawaii taxable income | The tax is |
|---|---|
| Over $0 but not over $4,800 | 1.4% of your income |
| Over $4,800 but not over $9,600 | $67 + 3.2% of the excess of $4,800 |
| Over $9,600 but not over $19,200 | $221 + 5.5% of the excess of $9,600 |
| Over $19,200 but not over $28,800 | $749 + 6.4% of the excess of $19,200 |
| Over $28,800 but not over $38,400 | $1,363 + 6.8% of the excess of $28,800 |
| Over $38,400 but not over $48,000 | $2,016 + 7.2% of the excess of $38,400 |
| Over $48,000 but not over $72,000 | $2,707 + 7.6% of the excess of $48,000 |
| Over $72,000 but not over $96,000 | $4,531 + 7.9% of the excess of $72,000 |
| Over $96,000 but not over $300,000 | $6,427 + 8.25% of the excess of $96,000 |
| Over $300,000 but not over $350,000 | $23,257 + 9% of the excess of $300,000 |
| Over $350,000 but not over $400,000 | $27,757 + 10% of the excess of $350,000 |
| Over $400,000 | $32,757 + 11% of the excess of $400,000 |
For Head of Household filers in Hawaii, the income tax brackets and rates for the Taxable Year 2024 are as follows:
| If the Hawaii taxable income | The tax is |
|---|---|
| Over $0 but not over $3,600 | 1.4% of your income |
| Over $3,600 but not over $7,200 | $50 + 3.2% of the excess of $3,600 |
| Over $7,200 but not over $14,400 | $166 + 5.5% of the excess of $7,200 |
| Over $14,400 but not over $21,600 | $562 + 6.4% of the excess of $14,400 |
| Over $21,600 but not over $28,800 | $1,022 + 6.8% of the excess of $21,600 |
| Over $28,800 but not over $36,000 | $1,512 + 7.2% of the excess of $28,800 |
| Over $36,000 but not over $54,000 | $2,030 + 7.6% of the excess of $36,000 |
| Over $54,000 but not over $72,000 | $3,398 + 7.9% of the excess of $54,000 |
| Over $72,000 but not over $225,000 | $4,820 + 8.25% of the excess of $72,000 |
| Over $225,000 but not over $262,500 | $17,443 + 9% of the excess of $225,000 |
| Over $262,500 but not over $300,000 | $20,818 + 10% of the excess of $266,500 |
| Over $300,000 | $24,568 + 11% of the excess of $300,000 |
Hawaii State Unemployment Insurance (UI)
Hawaii has enacted the State Unemployment Tax Act ( SUTA ) to provide assistance to individuals facing unemployment by providing unemployment benefits. This legislation enables the state to collect the required funds to administer unemployment insurance benefits to eligible individuals during periods of unemployment.
For the year 2024, in Hawaii, the taxable wage base per employee stands at $59,100. New employers are subject to a SUTA tax rate of 3.00%, while the maximum tax rate is 5.80%.
Additionally, there is an Employment and Training Assessment (E&T) rate of 0.01%. The maximum weekly benefit amount for unemployment benefits is $796.
Hawaii Temporary Disability Insurance (TDI)
The maximum weekly wage base for workers' compensation is calculated by dividing the maximum weekly benefit amount by 0.6667. If an employee's average weekly wage is below $26, the weekly benefit amount equals the average weekly wage, capped at $14. If the average weekly wage is $26 or more, the weekly benefit amount is 58% of the average weekly wage, rounded up to the next dollar, with a maximum of $798. Wages exceeding $1,374.78 are excluded from the calculation.
Employers can withhold TDI contributions up to one-half of the premium cost, not exceeding 0.5% of the employee's weekly wage or $6.87 maximum. For PHC premiums, employers may withhold up to one-half of the premium cost, not surpassing 1.5% of an employee's wages. If the employee's share is less than one-half of the premium, the employer covers the remaining portion.
Hawaii payroll tax filing
- Report of New hire Employees
- Report of Independent Contractors
- Hawaii personal income tax filing(Form N-11)
- Quarterly Wage, Contribution and Employment and Training Assessment Report(Form UC-B6)
Report of New hire Employees
Since October 1, 1998, all Hawaii employers, regardless of size or type, are obligated to report details of new hires to the Child Support Enforcement Agency (CSEA) through New Hire Reporting. This requirement encompasses businesses, government entities, and non-profit organizations. Employers must promptly submit new employee information to the CSEA, ensuring it is done within 20 days from the employee's start date. Late filing incurs a fee of $25.00, while deliberate failure, such as providing false or incomplete information, may result in a $500.00 penalty if there's evidence of collusion between the employer and the employee.
Report of Independent Contractors
Hawaii employers are not required to report new independent contractor hires to the Child Support Enforcement Agency.
How to report employees new hire in Hawaii?
In Hawaii, there are various avenues for submitting new hire information, offering employers flexibility in the reporting procedure.
| Online | Fax | |
|---|---|---|
| Employees New Hire Report | Address Information: 601 Kamokila Blvd. Suite 251 Kapolei, HI 96707 Public Phone: 808-692-7029 Email: https://ag.hawaii.gov/csea/contact/email-csea/ | Fax 1: 808-692-7001 |
Hawaii personal income tax filing(Form N-11)
For individual returns, the filing deadline is April 22nd. Partnership, corporation, and fiduciary returns are due on the 20th day of the fourth month after the tax year ends. Taxpayers must file by April 22, 2024, but an automatic 6-month extension is granted until October 22, 2024, if either of these conditions is met: the taxpayer is due a refund, or the taxpayer properly pays the estimated tax amount owed by April 22, 2024.
Failure to file on time incurs a penalty of 5% per month, up to a maximum of 25%, on the unpaid tax. Interest, calculated at 2/3 of 1% per month, starts accruing from the first calendar day after the payment due date, regardless of weekends or holidays. It's advised to pay as much of the estimated tax amount owed by April 22 to minimize interest and penalties.
Quarterly Wage, Contribution and Employment and Training Assessment Report(Form UC-B6)
Subject employers, encompassing both self-financed entities like government and nonprofit organizations, as well as contributory employers subject to a 0.00% tax rate, must furnish Form UC-B6, Quarterly Wage, Contribution, Employment, and Training Assessment Report. This form should be submitted no later than the final day of the month subsequent to the conclusion of the respective calendar quarter, adhering to the following guidelines:
| Reporting Period | Due Date |
|---|---|
| Quarter 1 | April 30 |
| Quarter 2 | July 31 |
| Quarter 3 | October 31 |
| Quarter 4 | January 31 |
Employers must submit Form UC-B6 and contributions by the due date to avoid penalties and interest. Even if no wages were paid during the quarter, Form UC-B6 must still be filed. Penalties for late submissions include:
- Late Contribution Payment: A penalty of 10%, not less than $100, is imposed if contributions are overdue. Interest applies beyond 15 days after the due date.
- Late Quarterly Wage/Contribution Reports (Forms UC-B6): A $30 penalty is assessed for tardy submissions. Inaccurate, incomplete, or late reports causing benefit overpayments may impact the employer's reserve account.
Have all the information handy?
With SecurePayStubs, you can calculate accurate federal and Hawaii state taxes for your employees and generate pay stubs securely.
Processing payroll manually is complex
As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.
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Spend less time generating pay stubs and more on your business growth.
This article has been updated from its original publication date of April 8, 2024.