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Payroll and Benefits Guide United States – Hawaii

Last updated: Mar 22, 2023

Currency
United States Dollar (USD)
Employer Taxes
13.65% – 24.65%
Payroll Frequency
Bi-weekly/Monthly
Employee Costs
9.22%
Capital
Honolulu
Date Format
mm/dd/yyyy
Fiscal Year
1 January - 31 December
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Contribution

Employer Employer Payroll Contributions
0.20%- 5.80% (Maximum taxable wages is 56,700 USD) Unemployment Insurance (State)
4.00% (Voluntary Contribution not permitted) Unemployment- New Employer (State)
6.20% (Maximum taxable wages is 160,200 USD) FICA Social Security (Federal)
1.45% 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
0.6667% of wages up to a maximum of weekly deductions of 14,000 USD (weekly deduction calculation) Hawaii Disability Insurance (State)
6.20% (Maximum taxable wages is 160,200 USD) FICA Social Security (Federal)
1.45% 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)
9.22% Total Employee Cost
State 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 and over
Married taxpayers filing jointly
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 and over
Standard Deduction and Personal Exemption
Single 2,250 USD 7,100 USD
couple /Married Filing Jointly 4,400 USD 14,200 USD
Personal exemption
Single 1,114 USD 142 USD
Couple /Married Filing Jointly 2,288 USD 284 USD
Dependent 1,144 USD 142 USD
Federal Employee Income Tax
Federal Tax – Singles
10.00% Up to 11,000 USD
12.00% 11,001 USD to 44,725 USD
22.00% 44,726 USD to 95,375 USD
24.00% 95,376 USD to 182,100 USD
32.00% 182,101 USD to 231.250 USD
35.00% 231,251 USD to 578,125 USD
37.00% 578,126 USD or more
Federal Tax – Married, filing jointly Federal Tax – Married, filing jointly
10.00% Up to 22,000 USD
12.00% 22,001 USD to 89,450 USD
22.00% 89,451 USD to 190,750 USD
24.00% 190,751 USD to 364,200 USD
32.00% 364,201 USD to 462,500 USD
35.00% 462,501 USD to 693,750 USD
37.00% 693,751 USD or more
Federal Tax – Heads of Households
10.00% Up to 15,700 USD
12.00% 15,701 USD to 59,850 USD
22.00% 59,851 USD to 95,350 USD
24.00% 95,351 USD to 182,100 USD
32.00% 182,101 USD to 231,250 USD
35.00% 231,251 USD to 578,100 USD
37.00% 578,101 USD or more
Standard Deduction and Personal Exemption
13,850.00 USD Single
27,700.00 USD Married Filing Jointly
20,800.00 USD Head of Household

Minimum Wage

General

The State Minimum Wage Law sets the Minimum Wage for Hawaii at 12.00 USD.

There are also other minimum requirements:

Minimum Cash wage (tipped employee): 11.00 USD

Maximum Cash wage (tipped employee): 1.00 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 Labor.

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 Labor 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 Labor (DOL) is responsible for the administration and enforcement of the FLSA.

Leave

Annual Leave (vacation)

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

Public holidays are not mandatory paid days off, but employers commonly allow workers to take federal holidays as paid days off.

Some companies might also agree to allow workers to take off state holidays; workers can find specific state holiday dates from their local government.

Usually when an agreed public holiday falls on a weekend, a day off in lieu is given on the Friday before or the Monday after the holiday.

Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day
15 Jan 2024 Monday Martin Luther King Jr. Day
19 Feb 2024 Monday Presidents Day
27 May 2024 Monday Memorial Day
19 Jun 2024 Wednesday Juneteenth Independence Day
4 Jul 2024 Thursday Independence Day July
2 Sep 2024 Monday Labor Day
14 Oct 2024 Monday Columbus Day
11 Nov 2024 Monday Veterans Day
28 Nov 2024 Thursday Thanksgiving Day
25 Dec 2024 Wednesday Christmas Day

 

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:

  • 12 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.
  • Leave for the adoption or foster care of a child and care for the newly placed child within one year of placement.
  • Care for the employee’s spouse, child, or parent who has a severe health condition.
  • Leave in the event of 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 service member 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

The Hawaii Family Leave laws (HFLL) 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. If paid leave is less than four weeks, 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 leave falls under the FMLA.

Parental Leave

Parental leave 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.

  • 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 authorized to work in the United States.

PAID MATERNITY LEAVE (DAYS)

Highest
Lowest

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. In general, 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 specialized 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 specialized 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.

 

VAT

General

Hawaii has a minimum combined 2023 Sales Tax (General Excise tax) rate of 4.41% USD (State tax at 4.00% and Local tax at 0.41% USD)

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Version History

February 16, 2022
Payroll contributions and personal income tax rates have been updated.
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Questions & Answers

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Curious employer
Curious employer
1 year ago

Why are there 2 employer Unemployment Insurance contributions?

Erez Greenberg
Erez Greenberg
1 year ago

This is because both state and federal governments impose unemployment taxes in the United States.

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Payroll and Benefits Guide in United States – Hawaii

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Payroll and Benefits Guide
in United States – Hawaii

What’s covered in this guide:

  • Employer/employee contributions
  • Minimum wage
  • Working hours
  • Visa requirements

And more...

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Public Holidays Calendar

United States – Hawaii
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CSV
PDF
ICS
Date Day Holiday Note
1 Jan 2024 Monday New Year’s Day
15 Jan 2024 Monday Martin Luther King Jr. Day
19 Feb 2024 Monday Presidents Day
27 May 2024 Monday Memorial Day
19 Jun 2024 Wednesday Juneteenth Independence Day
4 Jul 2024 Thursday Independence Day July
2 Sep 2024 Monday Labor Day
14 Oct 2024 Monday Columbus Day
11 Nov 2024 Monday Veterans Day
28 Nov 2024 Thursday Thanksgiving Day
25 Dec 2024 Wednesday Christmas Day