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New company registration in Hawaii

Hawaii tax agencies

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

Register a new company

Income tax withholding 

Register online with the Hawaii Department of Taxation. We recommend you start by using the Wizard to guide you through the process. The registration process can take 2-3 days. Please keep this time frame in mind when planning your first payroll in Hawaii. Alternatively, your request will be processed in 3 weeks if registering by mail, or same-day if you register in person at a local Hawaii Department of Taxation office. Note that the format of your Hawaii Withholding ID will be WH-000-000-0000-01 (or -02). 

Add Gusto as the Third Party Administrator (TPA) for withholding taxes
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. Gusto may request access to your withholding tax account from the state agency directly and it typically won't require any action on your end–we'll reach out if we're unable to view your online withholding account and need your assistance to resolve the issue.

Unemployment tax 

New employers in Hawaii will need to register online with the Department of Labor & Industrial Relations (DLIR) to obtain an account number within 20 days after hiring an employee. You should receive your account number and contribution rate by email immediately after registering. 

When entering your rate in Gusto, do not include the E&T rate component, only enter the experience rate.

 Click here to view state-by-state new employer rates and wage bases. If you're unsure, verify your rate by calling the agency at (808) 586-8915. 

Add Gusto as a Third Party Administrator (TPA) for unemployment taxes

This is required for all Gusto clients and gives us permission to file and pay taxes on your behalf. Read about the process below and then complete the steps required to add Gusto as a TPA.

Description of authorization process 

  • Create a Hawaii DLIR online profile if you haven't already.
  • Once your profile is set up, Gusto will send an authorization request through the agency website which will trigger an email notification to your company's administrator.
  • You'll need to accept Gusto’s authorization request in the Hawaii online profile and assign the appropriate roles or access to your account. 
    • Requests can be viewed and accepted 7 business days after registering.

Steps to create a Hawaii DLIR online profile:

  1. Have the following information readily available before beginning the registration: 
    • Hawaii Unemployment Insurance (UI) Account Number.
      • For existing Gusto customers, this can be found in Gusto under Company Details, under the heading Hawaii Tax Setup.
      • For new Gusto customers, this number can be  located 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 new Gusto customers, locate your Hawaii Quarterly Wage, Contribution, and Employment and Training Assessment Report. Your Total Wages Paid should be found on Line 6. 
      • For existing Gusto customers, this amount can be found in Gusto under Documents, then locate the Quarter Package for the requested quarter(s). Locate your Hawaii Quarterly Wage, Contribution, and Employment and Training Assessment Report. Your Total Wages Paid can be found on Line 6. 
  2. Navigate to the agency website.
  3. Click on Get Started under the “For Employers” heading - this will take you to the Employer landing page.
  4. Click on Create Online Profile to create an employer online user profile for your existing UI Account Number.
  5. Complete the setup of the profile.
  6. In 7 business days, accept Gusto’s authorization request in the Hawaii online profile. 
    • Your company’s Administrator will have to log in to Employer Services on the agency website using their new Online Business ID, their email address, and new password.
    • Click on “User Management” on the right-hand side.
    • 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, or E-Response.
      • If you have questions please contact the agency at (808) 586-8915 or review this user guide (Pages 1-11).
  7. Once you’ve authorized Gusto, log in to Gusto and:
    • Select the Company Details tab.
    • 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

Troubleshooting TPA for unemployment taxes
To ensure successful authorization, please confirm the following: 

  • You have registered in the agency's employer portal. 
  • The Unemployment Account Number you have entered into Gusto matches what is on file with the Hawaii Department of Labor and Industrial Relations. 
  • You have assigned sufficient rights to Gusto so that we can file and pay on your behalf.

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 resolve, contact the representative for your island: 

Temporary disability insurance

Hawaii employers are required to provide TDI (Temporary Disability Insurance) 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 maximum set annually by the state) to share the cost of coverage. 

Gusto does not handle TDI payments since these are sent to private TDI insurance carriers obtained by your company. If you elect to share the TDI cost with an eligible employee, we will still deduct this amount from the employee's wages when you run payroll. However, this amount will stay in your bank account so that you can pass this along to your insurance carrier.

To set up Hawaii TDI for your employees, sign into your Gusto profile and:

  1. Click on Company Details.
  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 either "Yes, deduct up to 0.5% from employees" if you want your employees to contribute to the cost of TDI, or "No, don't deduct my employees for TDI" if you will be covering the full cost of TDI for your employee(s).

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