Hawaii Employer Insurance Requirements: 3 Mandates (2026)
Hawaii requires all employers to carry three types of insurance: Workers' Compensation, TDI, and Prepaid Health Care. Here's what each covers, who it applies to, and how to comply.
Federal payroll rules, state-specific taxes, wage and hour law, and filing deadlines, explained in plain English for Hawaii small business owners, not accountants.
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Every employer owes federal payroll taxes, FICA and FUTA, on top of whatever Hawaii requires, whether that's state income tax withholding, unemployment insurance, or another state-specific program.
Minimum wage, overtime, final paycheck timing, and pay stub requirements can all differ from the federal baseline. Getting the Hawaii-specific rule wrong is one of the most common (and costly) payroll mistakes.
Late deposits, missed filings, and new-hire reporting misses each carry their own penalties. Knowing the Hawaii filing calendar in advance is the easiest way to avoid them.
Hawaii requires all employers to carry three types of insurance: Workers' Compensation, TDI, and Prepaid Health Care. Here's what each covers, who it applies to, and how to comply.
Step-by-step guide to running payroll in Hawaii for 2026: EIN, HW-4 withholding, DLIR unemployment tax, pay frequency rules, deposits, and year-end W-2 filing.
Hawaii's minimum wage is $16/hour as of January 1, 2026, rising to $18/hour in 2028. Learn the current rate, tip credit rules, posting requirements, penalties for violations, and how PDS keeps your payroll compliant.
Register as a new Hawaii employer in 2026: get your EIN, open a DOTAX withholding account, register for DLIR unemployment tax, and report new hires on time.
Hawaii follows FLSA overtime rules: 1.5x pay after 40 hours per week with no daily overtime. Learn exemptions, calculations, common mistakes, and how PDS handles overtime automatically.
Real dollar amounts for federal FTD penalties, Hawaii HW-14 late filing, UI penalties, workers' comp gaps, PHCA violations, and TDI non-compliance. See what these mistakes actually cost Hawaii employers.
All 5 layers of Hawaii payroll taxes explained - federal FICA, FUTA, state income tax, unemployment insurance, TDI, Prepaid Health Care, and workers' comp. Filing deadlines, deposit schedules, and rates for 2026.
Hawaii's 1974 Prepaid Health Care Act requires employer-provided health insurance for employees working 20+ hours per week. Coverage requirements, the 1.5% employee contribution cap, ACA interaction, exemptions, and penalties explained.
Complete Hawaii small business payroll checklist: EIN, BB-1, UI registration, new hire reporting, HW-14, UC-B6, W-2s, and annual compliance deadlines. Print and use.
Hawaii requires TDI coverage for most employees. Learn who must be covered, what TDI pays, how to get coverage, cost sharing rules, and employer obligations under Hawaii's Temporary Disability Insurance law.
The One Big Beautiful Bill created new deductions for tips and overtime pay. Learn what qualifies, what your W-2 reporting obligations are, and how PDS keeps Hawaii employers compliant through 2026 and beyond.
Hawaii UI tax is employer-only. New employer rate is 2.4% on the first $64,500 of wages. Learn how the experience rating system works, how to register, and how quarterly filing affects your FUTA credit.
Hawaii withholding tax 2026: updated Booklet A tables, lump-sum allowance now $4,350, e-filing threshold $40,000, HW-4 and HW-14 filing guide for employers.
Hawaii requires workers' compensation for all employers with one or more employees. Learn who must be covered, how to get coverage through HEMIC, how premiums are calculated, and the penalties for non-compliance.
Official Hawaii payroll agency directory for employers: tax registration, unemployment insurance, new-hire reporting, and wage-and-hour contacts in one place.
Trustpilot ratings as of October 2026: ADP 1.2/5 from 3,121 reviews; Paychex 1.7/5 from 848 reviews. Read them yourself: ADP, Paychex.
| Minimum wage | $16.00 |
|---|---|
| State income tax withholding | Hawaii Form HW-4 |
| SUI new-employer rate | 2.4% |
| SUI taxable wage base | $64,500 |
| Payday frequency rule | Wages must be paid at least twice a month on regular paydays set in advance, within 7 days after the end of the pay period. Monthly pay is allowed only if a majority of employees elect it by secret ballot or the DLIR director approves (HRS Section 388-2). |
| New-hire reporting deadline | 20 days |
Verified 2026-10 against official Hawaii sources.
Every Hawaii employer owes federal payroll taxes: Social Security and Medicare withholding under FICA, and federal unemployment tax (FUTA), regardless of what Hawaii itself requires. On top of that federal baseline, most states layer on their own obligations: income tax withholding, state unemployment insurance (SUI), and in some cases disability or paid-leave programs. Whether each of these applies, and at what rate, depends on Hawaii law. The first step for any new employer is registering with the right state agencies before running the first payroll. Our new employer payroll setup checklist walks through that process.
Minimum wage and overtime rules start with the federal Fair Labor Standards Act (FLSA), but Hawaii may set a higher minimum wage, stricter overtime triggers, or additional rules around tipped employees and meal or rest breaks. Overtime is generally 1.5 times the regular rate after 40 hours in a workweek under federal law, though some states calculate it differently. The FLSA employer guide covers the federal floor that every employer must meet before layering on Hawaii-specific requirements.
Final paycheck timing, new hire reporting deadlines, and pay stub requirements also vary by state. Missing a new hire report or paying a final check late can trigger penalties even when the payroll math itself was correct. New hires must be reported to the state's new hire registry, typically within a short window of the hire date, and every employer needs a state UI account number before the first unemployment filing is due.
For ongoing compliance, most employers file federal Form 941 quarterly, deposit federal withholding on a schedule based on prior-year liability, and file state withholding and unemployment returns on whatever schedule Hawaii assigns. Our federal payroll compliance checklist lays out the recurring tasks by frequency: new hire, every payroll, monthly, quarterly, and annual.
Rates, wage bases, and deadlines change from year to year and are specific to Hawaii. See the guides below for current Hawaii figures, or check directly with your state's revenue and labor agencies before filing.
Employers in Hawaii pay federal payroll taxes: Social Security and Medicare (FICA) and federal unemployment tax (FUTA), plus any state-level payroll taxes that apply, such as state income tax withholding and state unemployment insurance (SUI). Rates and wage bases vary and change annually, so always confirm current figures with your state's labor and revenue agencies.
Minimum wage in Hawaii is set by a combination of federal and state law, and the higher of the two rates always applies. Rates are reviewed regularly and can change from year to year, so check your state labor department's website for the current figure before running payroll.
New employers generally need a federal Employer Identification Number (EIN) from the IRS, plus registration with Hawaii's revenue department for state income tax withholding (where applicable) and its labor or workforce agency for state unemployment insurance. See our Hawaii guides for step-by-step registration instructions.
This site is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently and may not be reflected here. Always consult a qualified attorney, CPA, or HR professional familiar with Hawaii law before making payroll or compliance decisions for your business.