Get Form Hw-3 Rev 2010 Employer's Annual Return And ... - Hawaii.gov

Overview. Employers need to withhold Hawaii income taxes on employee wages. Employers then pay the withheld taxes to the State of Hawaii, Department of Taxation (DOTAX). Employees reconcile their withholding taxes paid as part of their Individual Income tax return.

All withholding taxpayers need to file returns quarterly (due April 15, July 15, October 15, and January 15) using Form HW-14. If changes need to be made to a return already submitted, please file an amended return for that filing period.

Penalties. Failure to do so will get the attention of the IRS and can result in civil and even criminal penalties. Sometimes the failure to pay is an oversight or a lack of understanding of what legal duties exist.

Hawaii also has a 4.40 to 6.40 percent corporate income tax rate. Hawaii has a 4.00 percent state sales tax rate, a 0.50 percent max local sales tax rate, and an average combined state and local sales tax rate of 4.44 percent. Hawaii's tax system ranks 43st overall on our 2023 State Business Tax Climate Index.

Hawaii employers are responsible for withholding FICA taxes - 1.45% of your earnings for Medicare taxes and 6.2% for Social Security. Your employer will then match these amounts, so the total contributions are double what you get paid.

For employees, withholding is the amount of federal income tax withheld from your paycheck. The amount of income tax your employer withholds from your regular pay depends on two things: The amount you earn. The information you give your employer on Form W–4.

This means as your taxable income grows, so does your tax rate. Hawai'i's personal income tax rates start at 1.4% and go as high as 11.0%. To compute the amount of tax to withhold from employees' pay, use Form HW-4, Hawai'i Employee's Withholding Allowance and Status Certificate.