Processing payroll in Hawaii requires you to register for an Employee Identification Number (EIN) with the IRS. You’ll need to register with the Hawaii Department of Taxation and Department of Labor & Industrial Relations for withholding and unemployment accounts. While Hawaii’s income tax rates are high, most payroll and HR regulations align with federal labor laws and don’t require much extra attention.
If you want to avoid making mistakes and being penalized, consider using payroll software like QuickBooks Payroll. It calculates, files, and pays your payroll taxes, and if you’re ever penalized for mistakes, you’ll be reimbursed by QuickBooks Payroll—regardless of who made the error. You can also use the software to pay your employees via direct deposit and offer benefits. Get 50% off Payroll Software for three months.
