Hawaii Payroll Tax Registration

If you are an employer in Hawaii who has recently hired an employee, you will need to register for payroll taxes with the Hawaii Department of Taxation. This registration process ensures that you are compliant with state tax laws and able to properly withhold and remit taxes on behalf of your employees.

How Hawaii Payroll Registration Works

There are 2 payroll tax setup tasks you may need to complete in Hawaii to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Hawaii agencies or use Mosey to do it.

Hawaii Withholding Tax Setup for LLP, LLC, Corporation

Employers with one or more Hawaii employees must withhold and remit employees’ personal income tax liability on earned wages. A withholding tax ID can be requested from the Hawaii Department of Taxation. It can take 2-4 days to receive a withholding tax ID when applying through Hawaii Tax Online, three to five days through Hawaii Business Express, or 3-4 weeks through mail.

1. File the Business Application Form Online
   

   Register for a withholding tax ID online by going to Hawaii Tax Online clicking "Register a new business license" and selecting "BB-1 Business Application."

2. Receive Withholding Tax ID
   

   It can take two to four days to receive your withholding tax ID. Once you receive it by email or in the mail, copy it into you payroll software. The format of the ID will look like WH-000-000-0000-01.

Hawaii Unemployment Insurance Setup for LLC, Corporation, LLP

As a Hawaii employer, you must register with the Hawaii Department of Labor and Industrial Relations for Unemployment Insurance within 20 days after an employee’s first day of work. Registration completed prior to the first employee's start date will be denied. Note: 501(c)(3) nonprofits organizations will have the choice to either pay unemployment contributions on taxable wages each quarter or elect "self-financing" status to reimburse the Hawaii Unemployment Trust Fund for benefits paid to terminated employees.

1. Create an Online Account with the Hawaii Department of Labor and Industrial Relations
   

   Create an account with the Hawaii Department of Labor and Industrial Relations online system to register for and manage Unemployment Insurance.

2. Request an Unemployment Insurance Account Number
   

   Fill out the online form to request a new Unemployment Insurance Account.

3. File Application for Self-Financing (Nonprofits Only)
   

   501(c)(3) nonprofit organizations who would like to opt for the self-financing method for paying unemployment must log in to the Hawaii Unemployment Insurance online account to file an Application for Self-Financing for Non-Profit Organizations (Form UC175). You will also need to submit your IRS determination letter and a security deposit of 0.22% of the annual or projected gross payroll.

4. Add Your Unemployment Insurance Account Number Into Your Payroll Software
   

   Provide your Hawaii Unemployment Account Number and your assigned unemployment tax rate (or self-financing status) to your payroll provider.

Hawaii's Payroll Registration Agencies

• Hawaii Department of Labor and Industrial Relations
• Hawaii Department of Taxation