Payroll and Benefits Guide - United States - Hawaii

United States - Hawaii
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Currency

United States Dollar (USD)

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Capital

Honolulu
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Employer Taxes

13.65% – 24.65%

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Date Format

mm/dd/yyyy
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Fiscal Year

1 Jan – 31 Dec

Fun Facts

The official state flower of Hawaii is the yellow hibiscus, also known as the Pua Aloalo.

The state fish of Hawaii is the humuhumunukunukuapua’a, also known as the reef triggerfish.

Hawaii is the only U.S. state that grows coffee commercially, and it is known for its Kona coffee, which is highly regarded worldwide.

The sport of surfing originated in Hawaii.

The Hawaiian language, known as ‘Ōlelo Hawai’i.

The island of Molokai is known for its stunning sea cliffs.

Contributions

Employee Payroll Tax

Contribution Type Rate
Hawaii Disability Insurance 0.6667%
FICA Social Security 6.20%
FICA Medicare 1.45%
Additional tax 0.90%

Employer Payroll Tax

Contribution Type Rate
Unemployment Insurance 0.20%- 5.80%
Unemployment- New Employer 4.00%
FICA Social Security 6.20%
FICA Medicare 1.45%
FUTA 0.60% -6.00%

Payroll

Payroll Cycle

The payroll cycles are every two weeks.

13th Salary

There is no legislation for 13th month payments in Hawaii.

Work Hours and Week

In Hawaii, the working week is a maximum of 40 hours per week, 8 hours per day.

Overtime

Hawaii adheres to the Fair Labor Standards Act (FLSA), and overtime is paid when employees work more than 40 hours in a week.

Leave

Paid Time Off

In Hawaii, there is no specific state statute that regulates the amount and payment of vacation time for employees. However, it is customary for many employers to provide paid vacation leave as part of their employment policies.

Public Holidays

There are 12 public holidays in Hawaii.

Sick Days

Eligible employees have the right to take up to 12 weeks of unpaid, job-protected leave per year for specific family and medical reasons.

Maternity Leave

The Hawaii Family Leave laws (HFLL) complement the Federal Family Medical Leave Act (FMLA). Employers with at least 100 employees are required to provide employees four weeks of unpaid leave for parenting.

Employees who worked for six consecutive months for the employer, regardless of the amount of time they work per day, are eligible for this leave which the employee can use for the birth or adoption of a child, care for a child or spouse, or parent with an illness.

Paternity Leave

Paternity leave falls under the FMLA (see Sick Leave).

Parental Leave

Paternity leave falls under the FMLA (see Sick Leave).

Termination

Termination Process

In the United States, unless there are mass dismissals or specific provisions in an employment contract or collective bargaining agreement, there is no mandated formal notice period for terminating an individual employment relationship.

Notice Period

Most employees are employed “at-will,” and either party can terminate the employment relationship without notice.

Severance Pay

Employers in Hawaii are not legally obligated to provide severance payments to terminated employees. The decision to offer severance pay is at the discretion of the employer and may depend on factors such as the employee’s length of service or specific contractual agreements

Probation Period

Probation Period

There are no provisions in the law regarding probation or trial periods. It is common practice for employers to set a performance evaluation after an initially stated period of employment of 90 days.

Immigration

Foreign nationals without permanent resident status or a work visa are not permitted to work in the United States. An employer seeking to hire a foreign national may file a petition with the United States Department of Homeland Security/ United States Citizenship and Immigration Services (“USCIS”) for an employment visa on behalf of the prospective employee.

If the petition is approved, the prospective employee must obtain a “visa stamp” from a United States embassy or consulate (Canadian citizens are exempt from this requirement).

To get a temporary U.S. work visa, an employer must file a petition with U.S. Citizenship and Immigration Services (USCIS).

For Work Permits

H-1B – for applicants with a college degree hired to do specialized work.

H-1B1 – for applicants with a college degree from Chile and Singapore.

H-2A – for temporary or seasonal agriculture work.

H-2B – for temporary non-agricultural work.

L – for intercompany transfers (people transferred from a foreign company to a US branch of the company.)

0 – for people with extraordinary ability in science, arts, education, business, or athletics.

VAT

Hawaii has a minimum combined 2023 Sales Tax (General Excise tax) rate of 4.41% USD (State tax at 4.00% and Local tax at 0.41% USD)