Hawaii Publishes Updated Employer’s Tax Guide

Paul Ogawa
September 20, 2021

The Hawaii Department of Taxation recently published an updated version of Booklet A, Employer’s Tax Guide. This publication provides guidance, filing instructions, and filing requirements for withholding tax reporting and payment obligations in Hawaii.

There were several updates to the publication that will bear an effect on taxpayers with reporting and payment obligations in Hawaii, including the following:

– Form HW-30 and the accompanying W-2 records (and EFW-2 transmittals if applicable and required) are now due on January 31 per Act 115 of 2021. These form and records were previously due on February 28.
– When an employer’s obligation to withhold taxes is terminated other than temporarily, said employer must upload their EFW2 transmittal to Hawaii Tax Online, Simple File Import, or the bulk file system by the 15th day of the month following the close of the applicable filing period.
– Noncash remuneration not in trade or business is now reported on either Form HW-2, a separate information return, or federal form 1099-NEC (previously listed as 1099-MISC).
– Extensions are now available by request for Forms HW-14 and HW-30. A two-month extension is available for good reason, and must be applied via a letter to the Department at least 10 days prior to the due date of the return or payment. The request must include the taxpayer name, withholding tax ID number, and signature of the authorized individual.
o References to Form HW-26, the form previously used to apply for an extension for Form HW-30, have been removed.
– A new penalty was added for failure to furnish a statement to employees by the applicable due date, and a failure to file with the Department by the due date, and a failure to file electronically if required: the penalty is $25 per failure not to exceed $50 per employee. This applies to Forms HW-2 and federal Form W-2.

To review this publication in its entirety, please click here to visit the Hawaii Department of Taxation online.

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Paul Ogawa

Paul Ogawa is a Senior Regulatory Counsel at Sovos Compliance. As part of the Regulatory Analysis team, his main areas of focus are state and federal tax withholding, the Affordable Care Act (ACA), and Canadian tax information reporting. Prior to Sovos, Paul worked as a litigation attorney in Boston area law firms, representing clients in insurance subrogation claims, family law matters, and employment disputes. Paul is a member of the Massachusetts Bar, earned his B.A. from Brandeis University and his J.D. from the Suffolk University Law School.
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