Hawaii registration and tax info

• Hawaii Department of Taxation – income tax withholding
• Hawaii Department of Labor & Industrial Relations – unemployment tax 

You have a few options for how to register—keep each time frame in mind when planning your first payroll in Hawaii:

• Register in-person at a local Hawaii Department of Taxation office—you'll get your tax information the same-day.
• Register online—this can take 2–3 days, in full.
• Register by mail—registrations can take 3 weeks to process.

Register online with the HI Department of Taxation

If you get stuck during registration, check out the agency's registration video.

1. Register online with the Hawaii Department of Taxation. 
2. In the “Start” section, click Get Started. 
   • You'll be taken to the Hawaii Business Express page.
3. Click Sign Up or Create an account to set up an online account.
   • Once you've created a Business Express login, you'll need to make sure a withholding account is associated with your business.
4. Head to Hawaii Tax Online.
5. Scroll to the “Registration” card and click Register New Business License. 
6. In the "BB-1 Business Application" section, click BB-1 Basic Business Application.
7. Use Form BB-1 to request a withholding (WH) account number.

Adding Gusto as your third-party agent is not required for us to file and pay withholding taxes on your behalf, but we may request access as needed (we'll let you know if that's the case).

Enter the tax account information in Gusto

Once a valid Hawaii address has been added in Gusto for one or more employees, you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Hawaii Tax Setup” headline and select Manage taxes.
3. Enter your Hawaii Withholding ID—the format will be WH-000-000-0000-01 (or -02).
   • If your account number starts with letters other than "WH" (like "GE"), then the account number is not for withholding tax. If that's the case, you must request a withholding tax account number using the BB-1 Business Application on Hawaii Tax Online.
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

New employers in Hawaii need to register online with the Department of Labor & Industrial Relations (DLIR) within 20 days of hiring an employee. After you complete the registration, you'll get an email with:

• Your account number, and;
• Your agency-assigned contribution rate. 
  • If you don't have your assigned rate yet, enter the new employer rate for your state in Gusto in the meantime—update the rate once you receive it.

If you do not know your account number or rate, call the agency at (808) 586-8915.

You'll also need to add Gusto as your third-party administrator (TPA) so we can file and pay your unemployment taxes. 

Enter the tax account information in Gusto

Once a valid Hawaii address has been added in Gusto for one or more employees, you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Hawaii Tax Setup” headline and select Manage taxes.
3. Enter your unemployment account number and rate—do not include the E&T rate component, only enter the experience rate.
   • Learn how to update your rate.
   • If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

Hawaii employers are required to provide Temporary Disability Insurance (TDI) coverage for eligible employees to help cover non-work-related injuries and illnesses.

Employers can choose to:

• Cover the entire cost, or;
• Withhold up to 0.5% of eligible employees' wages (up to the annual maximum set by the state) to share the cost of coverage. 

Gusto can help withhold employee deductions, but does not handle TDI payments as these are sent to private TDI insurance carriers that your company selected and will pay directly.

All plans must be submitted to this TDI division for review with Form TDI-15 and must be approved before they can be put into effect.

Set up Hawaii TDI deductions for your employees

If you choose to deduct 0.5% from any of your employees, we'll withhold the amount from their regular wages, and leave that amount in your bank account. You'll need to pay the carrier directly.

1. Click the Taxes & compliance section and select Tax Setup.
2. Scroll down to “Hawaii Tax Setup.”
3. Click on Manage Taxes.
4. Next to “TDI Employee Deduction,” click the blue edit pen.
5. Select one of the options:
   • If you want your employees to contribute to the TDI cost, select “Yes, deduct up to 0.5% from employees.”
   • If you want to cover the full cost of TDI, select “No, don't deduct my employees for TDI.”

Off-cycle payroll reminder

Gusto only withholds the employee deductions for TDI on regular payrolls. If you run an off-cycle payroll, and need to withhold the TDI amount, set up a one-time employee deduction in their profile for 0.5% before you run the off-cycle payroll. We'll leave that amount in the company's bank account to include with the rest of your carrier payment.

Businesses that have run payroll in Hawaii in the past can find their Tax ID by:

• Reviewing notices received from the Hawaii Department of Taxation (e.g., “Withholding Tax Return Form HW-14”) or;
• Calling the agency at (800) 222-3229.

The Hawaii Withholding ID number format is WH-000-000-0000-01 (or -02). They're no longer accepting IDs formatted as W00000000-00.

Adding Gusto as your third-party agent is not required for us to file and pay withholding taxes on your behalf, but we may request access if needed (we'll let you know if that's the case).

Issues finding the correct account number

If you have a number that starts with a W, or if you're having trouble finding the withholding account number that starts with "WH" (for withholding tax):

1. Head to Hawaii Tax Online. 
2. Scroll to the “Business” section, and click Search Tax Licenses.
3. For “Taxpayer Name”, enter your company name.
4. Click Search.
5. If you don't see an account number that starts with "WH," then you need to request a withholding tax account number using the BB-1 Business Application on Hawaii Tax Online.

You can find your Unemployment Insurance (UI) Account Number and rate by:

• Reviewing notices received from the Hawaii Department of Labor and Industrial Relations (e.g., "Contribution Rate Notice, Quarterly Wage Report Form UC-B6"), or;
• Calling the agency at (808) 586-8915. 

Do not include the E&T rate component when entering your rate in Gusto.

You'll also need to add Gusto as your third-party administrator (TPA) so we can file and pay your unemployment taxes. 

Hawaii employers are required to provide Temporary Disability Insurance (TDI) coverage for eligible employees to help cover non-work-related injuries and illnesses.

Employers can choose to:

• Cover the entire cost, or;
• Withhold up to 0.5% of eligible employees' wages (up to the annual maximum set by the state) to share the cost of coverage. 

Gusto can help withhold employee deductions, but does not handle TDI payments as these are sent to private TDI insurance carriers that your company selected and will pay directly.

All plans must be submitted to this TDI division for review with Form TDI-15 and must be approved before they can be put into effect.

Set up Hawaii TDI deductions for your employees

If you choose to deduct 0.5% from any of your employees, we'll withhold the amount from their regular wages, and leave that amount in your bank account. You'll need to pay the carrier directly.

1. Click the Taxes & compliance section and select Tax Setup.
2. Scroll down to “Hawaii Tax Setup.”
3. Click on Manage Taxes.
4. Next to “TDI Employee Deduction,” click the blue edit pen.
5. Select one of the options:
   • If you want your employees to contribute to the TDI cost, select “Yes, deduct up to 0.5% from employees.”
   • If you want to cover the full cost of TDI, select “No, don't deduct my employees for TDI.”

Off-cycle payroll reminder

Gusto only withholds the employee deductions for TDI on regular payrolls. If you run an off-cycle payroll, and need to withhold the TDI amount, set up a one-time employee deduction in their profile for 0.5% before you run the off-cycle payroll. We'll leave that amount in the company's bank account to include with the rest of your carrier payment.

Once a valid Hawaii address has been added in Gusto for one or more employees, you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Hawaii Tax Setup” headline and select Manage taxes.
3. Enter your Hawaii Withholding ID—the format will be WH-000-000-0000-01 (or -02).
   • If your account number starts with letters other than "WH" (like "GE"), then the account number is not for withholding tax. If that's the case, you must request a withholding tax account number using the BB-1 Business Application on Hawaii Tax Online.
4. Enter your unemployment account number and rate—do not include the E&T rate component, only enter the experience rate.
   • Learn how to update your rate.

If you edit a tax account number after payments or filings have already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.

Adding Gusto as your TPA is not required for us to file and pay withholding taxes on your behalf, but online access is helpful in resolving notices and other issues on your behalf.

We may request access to your withholding tax account from the state agency directly, and it typically will not require any action on your end—we'll reach out if we're unable to view your online withholding account and need your help getting access.

To let Gusto file and pay your taxes, you need to give us third-party access (TPA).

Here’s how it works:

1. You create a Hawaii DLIR online account (if you do not already have one).
2. Once your account is set up, Gusto will send a request through the agency’s website, and your company admin will get an email.
3. You need to accept Gusto’s request in your Hawaii account and give us the right roles or access (see below).
   • You can see and accept the request seven business days after creating your DLIR account.

Create a Hawaii DLIR online profile

1. Have the following information available before beginning the registration: 
   • Hawaii Unemployment Insurance (UI) Account Number.
     • For existing Gusto customers, this can be found in Gusto by clicking the Taxes & compliance section and selecting Tax setup, and scrolling to the Hawaii Tax Setup section.
     • For new Gusto customers, this number can be found on the annual tax rate notice from the DLIR. 
   • Company’s FEIN and Business Name
   • Recent quarter’s Total Wages Paid in Hawaii (the website may ask you for information for more than one quarter). 
     
     • For existing Gusto customers, you can find this amount by:
       • Clicking the Company section and selecting Documents, then;
       • Find the Quarterly Package for the requested quarter(s).
       • The quarterly package should have your “Hawaii Quarterly Wage, Contribution, and Employment and Training Assessment Report”, and your Total Wages Paid can be found on Line 6. 
2. Head to the DLIR website.
3. Scroll down, and click Employer Registration. 
4. Click on Create Online Profile to create an employer online user profile (pages 1–11) for your existing unemployment account number. Complete the setup of the profile.
5. Within 7 business days, have your company Administrator sign in to Employer Services their new login info and approve Gusto's TPA request. To do so:
   
   • On the right-hand side, click User Management.
   • Approve Gusto's access request.
   • Click Edit for Gusto and assign the following rights:
     • Account Inquiry
     • Enter Quarterly Wage Data
     • Submit Quarterly Wage Data
     • Forms
     • Payments
     • Request Credit Refunds
     • Notifications
     • DO NOT select Gusto for any of the following roles:
       • File Weekly Report of Low Earnings,
       • Appeals
       • E-Response.
     • If you have questions, contact the agency at (808) 586-8915.
6. Once you’ve authorized Gusto, sign in to Gusto and:
   • Click the Taxes & compliance section and select Tax setup. 
   • Scroll to the Hawaii Tax Setup section.
   • Click on Manage Taxes.
   • Click Edit next to UI Registrations. 
   • Select the radio button for Yes, I have authorized Gusto. 
   • Click Save. 

Third-party authorization issues or DLIR errors

If you're having trouble setting up third-party authorization, make sure you've done all the below:

• Created a DLIR agency profile. 
• Entered the unemployment account number in Gusto that matches what the agency has on file. 
• Assigned all necessary roles/access listed above.

If you get an error message while creating your profile in DLIR’s system, it could be because you’re missing a prior period filing. To fix this, contact the representative for your island: 

• Oahu
  • Phone: (808) 586-8915
  • Email: [email protected]
• Hawaii (Big Island)
  • Phone: (808) 974-4325
  • Email: [email protected], [email protected]
• Kauai
  • Phone: (808) 274-3025
  • Email: [email protected]
• Maui-Moloka
  • Phone: (808) 984-8410
  • Email: [email protected]