Hawaii Payroll Instructions

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Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2017 Payroll Tax Table Updates

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New & Used Swiss Army Knives

Hawaii uses a 'step' table to calculate state income tax withholding rates (similar to the federal withholding tax tables). Payroll withholding tax formulas did not change for 2017 (they have changed 11 times in the past 27 years).

There is also an employee withholding for disability insurance (Hawaii is one of four states that have this additional withholding item).

HINT-- Turtle Creek Software provides free annual updates for US federal and Hawaiian tax withholding rates, for our payroll software users.

Hawaii State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of Hawaiian dependents into the State Exemptions field.
  7. Enter the Hawaii Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  8. Click OK.

Hawaii State Unemployment Tax Instructions

In 2017, the Hawaii SUTA tax (unemployment insurance) applies to the first $44,000 in wages for each employee (a moderate increase from last year). The current starting rate for a new company is 4.0%. After the first year it varies from 1.2% up to a maximum rate of 5.4%, depending on the company's past experience rating.

To enter your Hawaiian state SUTA tax rate into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the Hawaii SUTA tax in the list, and double-click on it. HINT: If you don't see the state SUTA in the list, you'll need to import Hawaiian payroll info first.
  3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Hawaii Employment & Traning Tax

Hawaii also has a .01% Employment and Training Tax (E&T).


Hawaii DISABILITY INSURANCE

Employers are required to provide Temporary Disability insurance (TDI) for all employees (with a few exceptions). You may deduct up to 50% of the cost of this insurance from your employees. You'll need to compute the proper withholding for the employee portion, using either a percentage or a flat dollar amount. The state does not provide a specific method for computing the employee portion of this insurance, but you should probably base it on the method used by your insurance carrier to calculate the rate.

To enter an employee deduction for disability insurance into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the Hawaii Disability tax in the list, and double-click on it. HINT: If you don't see the state SUTA in the list, you'll need to import Hawaiian payroll info first.
  3. Choose a calculation method (either a percentage, or a dollar amount).
  4. Enter the amount you will withhold.
  5. Click OK.

Hawaii Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

  • Single- single employee with one personal exemption
  • Married- married employee with two personal exemptions
  • Dual Income- married employee with one personal exemption
  • Head of House- employee claims Head of Family status
  • Other- not used

Hawaii Tax Contacts

Tax forms website

Tax Forms-- 800 222-3229
SUTA rate info-- 808 586-8842

Hawaii Department of Taxation-- Taxpayer Service Branch
PO Box 259 Honolulu HI 96809


LittLe-Known HawaiiAN Tax Fact

Residents of the big island of Hawaii are expected to burn their primary automobile as a sacrifice to Pele, whenever lava threatens to overrun their town or village. This is deductible.


Official State Lawn Ornament

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