Current through August, 2024
(a) Each employer shall complete and furnish
the following applicable returns as prescribed by sections
235-61
to
235-63,
HRS, and the department, numbered and designated as follows:
HW-14 Withholding Tax Return;
HW-2 Statement of Hawaii Income Tax Withheld and Wages Paid;
and
HW-3 Employer's Return and Reconciliation of Hawaii Income
Tax Withheld From Wages.
(b) Form HW-14.
(1) In general. Pursuant to sections
235-62
and
235-63,
HRS, every employer required to file a return of income tax withheld from wages
shall file Form HW-14 or forms prescribed by the department, accompanied by
payment of the tax withheld. Unless otherwise provided, the return shall
identify the period covered by the return, the total wages paid by the employer
in the period (including all wages, even though some wages may be excludable
from withholding, such as wages paid to persons who are blind, deaf, or totally
disabled), the total amount of taxes withheld in the period, and any other
information which the director may require.
Employers that withhold income tax of $1,000 or more a year
shall file Form HW-14 on a monthly basis; employers that withhold income tax of
less than $1,000 a year may file Form HW-14 on a quarterly basis.
(2) Cease paying wages. Even if no
wages are paid or an employer temporarily ceases to pay wages for any period
(as in the case of seasonal business activity), the employer shall continue to
file Form HW-14; the form shall indicate that no wages have been paid and that
no taxes have been withheld.
If an employer ceases business permanently, the employer
shall file a final Form HW-14 marked "Final Return" and Form HW-1A
(Notification of Cancellation of Withholding).
(3) Where to file. Form HW-14 shall be filed
in the taxation district where the employer's principal place of business is
located or where services are principally performed. Nonresident employers
shall file Form HW-14 with the Oahu District office. Form HW-14 shall be signed
by the employer and shall be accompanied by payment of any taxes withheld from
wages during the period.
(4) Filing
due date. In general, monthly and quarterly filings of Form HW-14 are due on or
before the fifteenth day of the calendar month which follows the period for
which taxes are withheld. Where, however, an employer has a liability for taxes
withheld in excess of $100,000 a year, the employer shall report and submit
taxes on or before the tenth day of the calendar month which follows the period
for which taxes are withheld.
For example, an employer that files Form HW-14 on a monthly
basis shall report and submit taxes withheld during the month of January on or
before February 15 of the same year.
(5) Change in filing. If the amount of taxes
withheld by an employer increases to $1,000 or more or decreases below $1,000 a
year, the employer shall notify the department on forms prescribed by the
department. Accordingly, the employer shall change the frequency for filing
Form HW-14 (from quarterly to monthly, or from monthly to quarterly).
Where the employer's liability for taxes withheld increases
above or decreases to $100,000 or less, the employer shall notify the
department on forms prescribed by the department. Accordingly, the employer
shall file Form HW-14 by the appropriate date as set forth in this
section.
(6) Electronic
filing. Employers may substitute electronic filing, such as the use of magnetic
tapes, computer printouts, or other approved media, for filing Form HW-14.
Before any information is transmitted electronically, the employer shall file
Form HW-25 or forms prescribed by the department and seek permission to file
electronically. The consent of the director or designee must be received before
electronic filing is permitted.
(7)
Failure to file; failure to pay; underpayment of tax. An employer that fails to
pay or underpays the tax liability, or that fails to file information as
required under section
235-61,
HRS, and sections 18-235-61-01 to 18-235-61-14 shall be subject to penalties
and interest as set forth in section
231-39(b),
HRS.
(c) Form HW-2.
Provided all the required information is submitted, commercially printed forms
or federal Form W-2 may be substituted for Form HW-2.
(1) In general. Every employer shall furnish
Form HW-2 to:
(A) Every employee upon whose
wages deduction and withholding is required;
(B) Every employee who is blind, deaf, or
totally disabled even though the wages are not subject to withholding;
and
(C) Every employee to whom
wages subject to withholding (or payments under a wage continuation plan) have
been paid in any period during the calendar year (or period of
employment).
(2)
Information provided. Each Form HW-2 must show the following information
relating to wages earned by and taxes withheld from an employee during the
calendar year for which the HW-2 is issued: the employee's name, address, and
social security number, if any; the employer's name, address, and Hawaii
withholding identification number; and time period covered by the statement;
the total amount of wages paid to the employee during the time period,
including wages which are not subject to withholding, such as wages paid to a
person who is blind, deaf, or totally disabled; the amount of income tax
deducted and withheld, if any; and such other information as the director may
require. Noncash remuneration, and advances or reimbursements for expenses and
the like, must be separately stated on Form HW-2 or forms prescribed by the
department. The form must be furnished to both the employee and the director or
designee. Federal Form 1099 also may be used for this purpose. If the total
amount of noncash remuneration, advances, and reimbursements, together with the
wages subject to withholding and payments under wage continuation plans, total
more than the amount of one withholding exemption for any period, then a
separate Form HW-2 or forms prescribed by the department must be furnished for
each type of payment.
(3) If a
separate form is used, it must include any wages subject to withholding (or
payments under a wage continuation plan) not reported on Form HW-2 or forms
prescribed by the department and filed with the director or designee.
(4) Filing date; forms. Every employer shall
provide each employee that it employed during the preceding calendar year with
copies B and C of Form HW-2 by January 31 of the following calendar year. If,
however, an employee ceases to work for an employer before the calendar year
ends and is not expected to return for the remainder of the calendar year, the
employee may submit a written request to the employer requesting copies B and C
of Form HW-2 before January 31 of the following calendar year. Upon receiving
the written request, the employer shall provide the HW-2 statements within
thirty days or by January 31 of the following calendar year, whichever is
earlier.
(d) Form HW-3.
Form HW-3 (Employer's Return and Reconciliation of Hawaii Income Tax Withheld
from Wages) shall show the following information:
(1) The employer's name, address, and Hawaii
withholding identification number;
(2) The total wages paid to employees
(including cost of living allowance, sick pay, and wages paid to a person who
is blind, deaf, or totally disabled);
(3) The total wages subject to withholding
that are paid to employees;
(4) The
amounts of tax withheld from employees' wages, as shown on these
forms;
(5) The amount of tax
remitted to the department, as reported monthly or quarterly on Form
HW-14;
(6) Total payments made
during the calendar year; and
(7)
Other information as the director may require.
The employer shall remit any discrepancy between the total
amount of tax withheld from all employees' wages during the preceding calendar
year and the amounts remitted to the department as reported monthly or
quarterly on Form HW-14.
(e) Reconciliation of taxes withheld; Forms
HW-2 and HW-3. Each employer shall file with the department, on or before the
last day of February following the close of the calendar year, Copy A of Form
HW-2 issued for the preceding calendar year, and copies 1 and 2 of Form HW-3.
If an employer submits more than one Form HW-2, the employer
shall attach a list of the amounts of income tax withheld, as stated in the
HW-2 forms.
(1) Separate divisions. If
an employer's total payroll covers a number of separate divisions, the employer
may separate and submit the HW-2 forms by divisions. A summary list must be
submitted, along with each division's HW-2 forms, and the figures shall be
reported on the employer's HW-3 form. The total of all tax withheld by the
divisions shall correspond with the entry made on Form HW-3.
(2) Large number of forms. Where an employer
submits a large number of HW-2 forms, the forms may be forwarded to the
department in packages of convenient size. The packages shall be identified
with the employer's name, Hawaii withholding identification number, and shall
be consecutively numbered; Form HW-3 shall be placed in the first
package.
(3) Employer goes out of
business. If an employer goes out of business or permanently ceases to pay
wages, the employer shall file Form HW-3 with accompanying HW-2 statements at
the same time the final Form HW-14 return is filed. The final Form HW-14 shall
be marked "Final Return". The employer also shall file Form HW-1A.
(4) Extension of time to file. Upon
application by an employer, the director may grant an extension of time of not
more than two months for filing Form HW-3 and the accompanying statements and
list. Except in a case of termination of business or the like, an application
for an extension of time must be filed on or before the last day of
February.
(5) Amendment of Forms
HW-2 and HW-3. An employer may amend incorrectly filed Forms HW-2 and HW-3.
Amendments shall be made on forms prescribed by the department. Amendment of
Forms HW-2 and HW-3 shall be made within three years from the date the form is
due or three years after the form is filed, whichever is later.
If Form HW-2 is amended and the amendment occurs prior to
the filing of Form HW-3 for the taxable year, the employer shall submit the
amended Form HW-2 at the time Form HW-3 is filed. If, however, the amendment of
Form HW-2 occurs after Form HW-3 for the taxable year has been filed, the
employer shall submit the amended HW-2 with Form HW-23 ("Amended Employer's
Return and Reconciliation of Hawaii Income Tax Withheld from Wages") or on
forms prescribed by the department.
(f) Use of single return form for more than
one employer. Except as provided in sections 18-235-61-01 to 18-235-61-14 and
subject to the approval of the director or designee, a single return may
comprise the monthly withholding tax return of more than one employer where the
employers have been permitted to file the required tax information
electronically.
(1) Authorization.
(A) The return may be made by an agent for or
on behalf of the employer required to make the return. Each agent filing a
single return for more than one employer shall include, with each return, a
list of the participating employers.
(B) The agent filing the single return first
shall seek approval of the director or designee, on forms prescribed by the
department, to file the return as agent for more than one employer.
(C) The agent shall obtain a power of
attorney, acceptable to the director or designee, from each employer which it
represents and the power of attorney shall be filed with the director or
designee. The power of attorney shall authorize the agent to sign the return,
verify by written declaration that the return is made under penalties of
perjury and in accordance with law, file the required return, and direct
payment of the employer's payroll taxes.
(D) The agent shall keep and maintain a copy
of each power of attorney until the power has been revoked by the respective
employer.
(E) The agent shall
notify the director or designee if a power of attorney is revoked and the
effective date of the revocation, at least five days prior to the due date of
the return. Notification of the revocation shall be made and filed as
prescribed by the department.
(2) Form of return.
(A) Employers or their agents may file the
monthly or quarterly withholding tax return information on computer printouts,
magnetic tapes, or other media approved by the director or designee. To seek
approval, employers or their agents shall file the appropriate form prescribed
by the department.
(B) Whenever
magnetic tapes are used as attachments, the tape shall be in the magnetic tape
format utilized by the department.
(C) The withholding tax information submitted
on computer printouts, magnetic tapes, etc., shall include all information
which is required on Form HW-14. In addition, a list of the employer
identification numbers in numerical sequence, the name of each employer, and
any other information the director or designee may require shall be attached to
the computer printouts, magnetic tapes, etc.
(D) All computer printouts, magnetic tapes,
and other approved media shall conform to the requirements of the department
and as set forth in this section.
(E) The director, from time to time, may
change the requirements or the required forms as needed.
(3) Filing. The return shall be deemed
properly filed upon submission of the information required by the
department.
(4) Payment.
(A) The tax withheld shall be due and payable
at the time the withholding tax return information is filed with the
department. One copy of the withholding tax return information shall be filed
with the department; a second copy shall be stamped upon receipt of payment and
returned to the employer or agent.
(B) Each agent filing the return permitted by
this section shall pay the taxes in full by cash, cashier's check, or certified
check.
