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New company registration in Hawaii

Hawaii tax agencies

  • Hawaii Department of Taxation - income tax withholding
  • Hawaii Department of Labor - 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). 

Unemployment tax 

New employers in Hawaii will need to register online with the Department of Labor to obtain an account number within 20 days after hiring an employee. You should receive your number and contribution rate about 2 weeks after registering. The rate for a new employer is typically 2.4%. If you're unsure, verify your rate by calling the agency at (808) 586-8915. 

Temporary disability insurance

Hawaii employers are required to provide TDI (Temporary Disability Insurance) coverage for eligible employees to help cover nonwork-related injuries and illnesses. Employers can choose to cover the entire cost or withhold up to 0.5% of eligible employees' wages (not to exceed $5.44/week) 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.