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United States – Hawaii 2022
Day Date Holiday Notes
Saturday Jan-1 New Year's Day
Monday Jan-17 Martin Luther King, Jr. Day
Monday Feb-21 President's Day
Friday Mar-25 Prince Jonah Kuhio Kalanianaole Holiday
Saturday Mar-26 Prince Jonah Kuhio Kalanianaole Day
Friday Apr-15 Good Friday
Monday May-30 Memorial Day
Friday Jun-10 King Kamehameha Holiday
Saturday Jun-11 King Kamehameha Day
Monday Jul-4 Independence Day
Friday Aug-19 Statehood Day
Monday Sep-5 Labor Day
Tuesday Nov-8 General Election Day
Friday Nov-11 Verteran's Day
Thursday Nov-24 Thanksgiving Day
Sunday Dec-25 Christmas Day
Monday Dec-26 Christmas Holiday
Countrypedia

United States – Hawaii
Payroll and Benefits Guide

Last updated: Feb 14, 2022
Currency
United States Dollar (USD)
Payroll Frequency
Bi-Monthly/Monthly
Employer Taxes
13.65% - 24.65%

Papaya Offers Complete Payroll, PEO and Contractor Management Services For United States – Hawaii

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Overview

Capital
Honolulu
Currency
United States Dollar (USD)
Date Format
mm/dd/yyyy
Fiscal Year
1 January- 31 December
Public holidays calendar

Contributions

Employer

Employer Payroll Contributions

0.20%- 5.80% (Maximum taxable wages is 51,600 USD)

Unemployment Insurance (State)

5.20% (Voluntary Contribution not permitted)

New Unemployment Insurance (State)

6.20% (Maximum taxable wages is 142,800 USD) 

FICA Social Security (Federal)

1.45% (Maximum taxable wages is 147,000.00 USD)

FICA Medicare (Federal)

0.60% - 6.00% (Maximum taxable wages is 7,000 USD)

FUTA (Federal Unemployment Tax Act)  The FUTA tax rate is 6.0% with a taxable wage base of 7,000 USD. However, if states operate their unemployment insurance programs in compliance with federal law then the FUTA tax is reduced (credit) by 5.4% to 0.6%.

13.65% - 24.65% Total Employment Cost

Employee

Employee Payroll Contributions

0.50% of wages up to a maximum of weekly deductions of 5.51 USD (weekly deduction calculation)

Hawaii Disability Insurance (State)

6.20% (Maximum taxable wages is 147,000 USD)

FICA Social Security (Federal)

1.45% (Maximum taxable wages is 147,000.00 USD)  1.45% (Maximum taxable wages is 147,000.00 USD) 

FICA Medicare (Federal)

0.90% 

Additional tax on earnings over 200,000 USD (High-income earners also pay an additional 0.9 percent in Medicare taxes)

8.15% - 9.05% Total Employee Cost

Employee Income Tax

State Tax - Single Filer
1.40%

0 USD to 2,400 USD

3.20%

2,400 USD to 4,800 USD

5.50%

4,800 USD to 9,600 USD

6.40%

9,600 USD to 14,400 USD

6.80%

14,400 USD to 19,200 USD

7.20%

19,200 USD to 24,000 USD

7.60%

24,000 USD to 36,000 USD

7.90%

36,000 USD to 48,000 USD

Employee

Employee Income Tax

State Tax - Married Couples
1.40%

0 USD to 4,800 USD

3.20%

4,800 USD to 9,600 USD

5.50%

9,600 USD to 19,200 USD

6.40%

19,200 USD to 28,800 USD

6.80%

28,800 USD to 38,400 USD

7.20%

38,400 USD to 48,000 USD

7.60%

48,000 USD to 72,000 USD

7.90%

72,000 USD to 96,000 USD

Employee Income Tax

State Tax - Standard Deduction
Single

2,250 USD

Couple / Married Filing Jointly

4,400 USD

Personal Exemption

Single

1,114 USD

Couple / Married Filing Jointly

2,288 USD

Dependent

1,144 USD

Employee Income Tax

Federal Tax - Single Filing
10,00%

Up to 10,275 USD

12.00%

10,276 USD to 41,775 USD

22.00%

41,776 USD to 89.075 USD

24.00%

89,076 USD to 170,050 USD

32.00%

170,051 USD to 215,950 USD

35.00%

215,951 USD to 539,900 USD

37.00%

539,901 USD or more

Employee Income Tax

Federal Tax - Married Joint Filing
10.00%

Up to 20,550 USD

12.00%

20,551 USD to 83,550 USD

22.00%

83,551 USD to 178,150 USD

24.00%

178,151 USD to 340,100 USD

32.00%

340,101 USD to 431,900 USD

35.00%

431,901 USD to 647,850 USD

37.00%

647,851 USD or more

Employee Income Tax

Federal Tax - Head of Households
10.00%

Up to 14,650 USD

12.00%

14,651 USD to 55,900 USD

22.00%

55,901 USD to 89,050 USD

24.00%

89,051 USD to 170,050 USD

32.00%

170,051 USD to 215,950 USD

35.00%

215,951 USD to 539,900 USD

37.00%

539,901 USD or more

Employee Income Tax

Standard Deduction and Personal Exemption
Single

12,950.00 USD

Married Filing Jointly

25,900.00 USD

Head of Household

19,400.00 USD

Payroll

Payroll Cycle

In general, employees in Hawaii are paid every two weeks with a due date of seven days before the end of the pay period.  For monthly paid employees, the pay date must be within fifteen days of the end of the pay period as stipulated by the Hawaii Department of Labour.

13th Salary

There is no legislation for 13th month payments in Hawaii.

Working Hours

General

In Hawaii, the working week is a maximum of 40 hours per week, 8 hours per day.

Overtime

Hawaii adheres to the Fair Labour Standards Act (FLSA), and overtime is paid when  employees work more than 40 hours in a week. The employer must pay 150% of the regular salary rate for the extra hours worked as overtime. Similarly, if employees are scheduled to work on weekends or rest days, no additional payment is required. However, should an Employer request an employee to work in exceptional circumstances on these days, then overtime will be payable at 150% of the regular salary rate for the extra hours worked.

The Wage and Hour Division (WHD) of the Department of Labour (DOL) is responsible for the administration and enforcement of the FLSA.

   

Working Week

Monday-Friday

Leave

Paid Time Off

Hawaii does not have any state statute governing the amount and payment of vacation time; however, it is common for employers to to offer paid vacation leave.  This must comply with employment law and must be stipulated in the collective bargaining agreement or employment contract.

Public Holidays

There are 13 public holidays in Hawaii.  Private employers are not required to provide days off and or extra pay for work on these days.

Sick Days

It is common for an employer to follow the Family and Medical Leave Act (FMLA) which provides certain employees with up to 12 weeks of unpaid, job-protected leave per year for certain family and medical reasons (maternity leave, serious illnesses or if the employee needs to care for a spouse or child).

Employees are eligible for FMLA if they have worked for their employer for at least one year, completed a minimum of 1,250 hours over the past year, and worked at a location where the company employs 50 or more employees within 75 miles.

FMLA eligible employees are entitled to:

  • Twelve working weeks of leave in any one year for a child’s birth and to care for the newborn child within one year of birth.
  • The employee may be entitled to leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • To care for the employee’s spouse, child, or parent who has a severe health condition.
  • A serious health condition that makes the employee unable to perform the essential functions of their job.
  • any qualifying exigency arising out of the fact that the employee’s spouse, son, daughter, or parent is a covered military member on “covered active duty.”

OR

  • Twenty-six working weeks of leave during a single one-year period to care for a covered servicemember with a serious injury or illness if the eligible employee is the service member’s spouse, son, daughter, parent, or next of kin (military caregiver leave).

Maternity Leave

Hawaii has its Family Leave laws (HFLL) that complement the federal Family Medical Leave Act (FMLA). Employers with at least 100 employees are required to provide employees four weeks of unpaid leave for parenting. Employees who worked for six consecutive months for the employer, regardless of the amount of time they work per day, are eligible for this leave which the employee can use for the birth or adoption of a child, care for a child or spouse, or parent with an illness.

Hawaii also has an administrative code that provides job protection for an employee when taking leave due to pregnancy-related disability or childbirth and ensures employers make reasonable adjustments to the work environment to accommodate.

In addition, Hawaii has a Temporary Disability Insurance (TDI) Program, which provides eligible employees with partial pay during their leave due to a temporary disability caused by pregnancy or childbirth. Suppose paid leave is less than four weeks. In that case, the additional period of leave may be unpaid, and employees may substitute any of their accrued paid leave (sick, vacation, personal, or family leave) for any part of the four-week period).

Paternity Leave

Paternity law falls under the FMLA

Parental Leave

Parental law falls under the FMLA

Other Leave

Hawaii law states that all employers must provide their full-time employees job-protected but unpaid time off from work to perform their duty as jurors or as a witness in a case, responding to a subpoena: or acting as a plaintiff or defendant in the courts. Employees must provide a copy of the jury summons to the employer as evidence of requirement.

Hawaii law requires all employers to grant their employees who are registered to vote up to two hours of paid leave to vote in any municipal, county, state, federal primary, or general election. Employees must provide reasonable notice to their employers to take time off to vote.

In addition to the federal law USERRA, Hawaii law provides protection against discrimination for members of U.S. armed forces, reserves, National Guard, commissioned corps of the Public Health Service, and any other category of persons designated by the president in a time of war or emergency.

Termination

Termination Process

Except in mass dismissals or as provided for in an employment contract or a collective bargaining agreement, U.S. law does not impose a formal “notice period” to terminate an individual employment relationship, and employment is stipulated “at will.” This means that either the employer or the employee may end the employment relationship without giving either notice or reason, provided it is not illegal, notable discrimination on the grounds of a category protected by law, etc., and as per the Federal Worker Adjustment and Retraining Notification Act (WARN).

The employment contracts of executives and other highly skilled individuals often incorporate a “just cause termination” clause which mandates that the employer may only terminate the employee for “cause” and lists the permissible grounds. In such cases, the parties negotiate the foundations for a “just cause” termination case-by-case.

Notice Period

In Hawaii, most employees are employed “at-will,” and either party can terminate the employment relationship without notice. In Hawaii, pay out of unused vacation time is not required by law. Generally though employers do pay employees for unused vacation days, provided the employee gives advanced notice of resignation.

There is no official notice period, but general practice is to give two weeks’ notice.

In mass dismissal cases the Worker Adjustment and Retraining Notification Act (WARN Act) must be followed, and employers must give 60 days’ notice to impacted employees.

Severance Pay

Employers do not need to make severance payments to terminated employees. Employers who choose to offer severance pay need to have the provisions within the employee’s contract and agreed to by both parties. Many employers choose to offer severance payment linked to the employee’s length of service.

VISA

VISA

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/ United States Citizenship and Immigration Services (“USCIS”) for an employment visa on behalf of the prospective employee.

If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).  To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS). An approved petition must be part of the visa request; the types of visas include:

  • H-1B – for applicants with a college degree hired to do specialised work. The visa is valid for three years and can be extended for an additional three years. The visa is connected to the employer that filed the petition. If there is a change of employer, the new employer must repeat the process. There are 65,000 H-1B visas available each year.
  • H-1B1 – for applicants with a college degree from Chile and Singapore. The US government grants up to 1,400 visas to Chilean citizens and 5,400 from Singapore each year.
  • H-2A – for temporary or seasonal agriculture work. It is limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • H-2B – for temporary non-agricultural work. These visas are limited to citizens of qualified countries. Usually valid for up to 1 year and can be extended to a maximum of 3 years.
  • L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.) The applicant must have been employed at the company for a year before the transfer and work in a managerial level position or higher with specialised knowledge.
  • 0 – for people with extraordinary ability in science, arts, education, business, or athletics.

The standard procedure is to obtain a short-term work visa and then apply for an immigrant visa after the employee has started working in the United States.

For those seeking employment-based immigrant visas:

  • E-1 – Highest priority employment for those with extraordinary ability in science, arts, education, business, and athletics.
  • E-2 – for those with advanced degrees or exceptional ability.
  • E-3 – for skilled workers and professionals, as well as unskilled workers.
  • E-4 – Members of certain immigrant groups.
  • E-5 – Immigrant investors in US companies (substantial investment)

Alternatively, an employer may sponsor a potential employee’s application for permanent resident status, referred to as a “green card,” if the employee can establish that the potential employee is a multinational executive/manager transferee, has unique skills, or has been offered a job in the United States. The employer must have been unable to recruit a U.S. worker who meets the position’s minimum requirements.

All employers are obligated to verify that all individuals they employ are authorised to work in the United States.

VAT

General

Hawaii has a minimum combined 2022 Sales Tax (General Excise tax) rate of 4.44% USD (State tax at 4.00% and Local tax at 0.44% USD) 

Version History

February 16, 2022
Payroll contributions and personal income tax rates have been updated.
Stay up to date on payroll & employment law changes

Questions & Answers

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Curious employer
Curious employer
4 months ago

Why are there 2 employer Unemployment Insurance contributions?

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