Run payroll with Hawaii-specific details in view — including state income tax withholding, unemployment insurance contributions, new-hire reporting, minimum wage requirements, federal payroll taxes, and the state’s twice-monthly wage payment rule. PayDay brings the workflow together so payroll is easier to manage as your team grows.
Hawaii has a progressive individual income tax, and employers generally withhold state income tax from covered employee wages using Hawaii’s current withholding tables.
Hawaii employers can have state withholding, unemployment insurance, wage-payment, new-hire reporting, and minimum-wage obligations in addition to federal payroll responsibilities. A reliable payroll process should keep each requirement tied to the correct employee, pay period, tax account, filing schedule, and work location.
Hawaii payroll can involve state income tax withholding, unemployment insurance contributions, and the usual federal employment taxes.
For 2026, Hawaii uses Contribution Rate Schedule C. The taxable wage base is $64,500 per employee, the new-employer contribution rate is 2.40%, and the maximum contribution rate is 5.60%. Hawaii also lists a 0.01% Employment & Training assessment for 2026.
Hawaii UI ratesHawaii has a progressive individual income tax. Current rate schedules range from 1.40% to 11.00%, and employers generally withhold Hawaii income tax from covered wages using the state’s 2026 withholding tables in Booklet A.
2026 payroll updateHawaii employers also manage federal income tax withholding, Social Security and Medicare taxes, and federal unemployment tax where applicable. Deposit and filing schedules depend on federal rules and your payroll tax profile.
Federal tax overviewNeed the official Hawaii employer guidance for state income tax withholding, filing schedules, forms, and payroll tables?
Open Hawaii employer tax guideFour state-specific details worth building into your payroll process right now.
Hawaii’s statewide minimum wage is $16.00 per hour beginning January 1, 2026. It is scheduled to increase to $18.00 per hour on January 1, 2028.
Hawaii employers must report each new hire within 20 days of hire. A rehired employee is treated as a new hire after a separation of at least 60 consecutive days.
For calendar year 2026, Hawaii unemployment insurance contributions apply to the first $64,500 of wages paid to each employee.
Hawaii generally requires wages to be paid at least twice during each calendar month on regular paydays designated in advance, with wages generally due within seven days after the pay period ends.
Minimum wage timing matters: Hawaii’s minimum wage is $16.00 per hour in 2026 and is scheduled to rise to $18.00 per hour on January 1, 2028. Employers should also review Hawaii’s separate tip-credit conditions, overtime rules, exemptions, and any industry-specific requirements that may apply.
Keep the day-to-day payroll work in one organized system, from employee data to calculations, deductions, records, and growing teams.
Keep employee details, compensation information, job data, and payroll history together instead of spreading records across disconnected files.
Calculate gross pay, overtime, bonuses, taxes, deductions, and net pay with repeatable payroll workflows that reduce manual work.
Support hourly, salaried, overtime, shift-based, commission, and other compensation structures across different employees and teams.
Track taxes, benefits, retirement deductions, garnishments, loans, and other payroll deductions with a clearer audit trail.
Keep payroll registers, employee pay history, deduction details, and reporting data organized so review and reconciliation are easier.
Add employees, locations, departments, and payroll structures as your Hawaii business expands without rebuilding your process each time.
Whether your team works from one location or across multiple islands and business centers, centralized payroll records help you keep employee data, pay settings, departments, and locations organized in one place.
A simple workflow helps your team move from employee setup to payroll review and final processing with fewer handoffs.
Add employee information, pay type, compensation, work location, deductions, and the payroll details your process needs.
Review hours, earnings, state and federal tax treatment, deductions, adjustments, and totals before finalizing the payroll cycle.
Keep payroll history, employee records, reporting details, and recurring schedules together for the next payroll run.
Hawaii generally requires employers to pay wages to employees at least twice during each calendar month on regular paydays designated in advance. Earned wages are generally due within seven days after the end of each pay period. That makes payroll cutoffs, approvals, banking timing, and documented paydays important parts of the process. Employers should also check any applicable exception, collective bargaining agreement, public-works rule, or other special requirement before setting a different schedule.
Hiring an employee outside Hawaii can create payroll obligations in the state where that employee works. You may need additional employer registration, different state income tax withholding, unemployment coverage, local taxes, leave programs, or different payday rules depending on the work location. Multi-state payroll works best when each employee’s work state is recorded clearly and payroll settings are reviewed before the first paycheck.
Use location-based employee settings and a documented state setup process so Hawaii rules are not accidentally applied to an employee working in another state.
Explore Multi-State PayrollGive payroll teams a cleaner workflow for employee data, recurring payroll tasks, and day-to-day workforce administration.
Bring employee setup, payroll processing, deductions, records, and review steps into a straightforward payroll process.
Support more employees, departments, pay types, and locations without relying on a maze of manual spreadsheets.
Keep payroll information, employee records, reports, and recurring admin work connected in one business system.
Use official resources to confirm Hawaii-specific payroll obligations and stay current as rules, wage bases, withholding tables, or rates change.
Official Hawaii Department of Taxation forms and publications, including Booklet A and the current employer income tax withholding guidance.
Official Hawaii Department of Labor and Industrial Relations information covering minimum wage, overtime, wage payment, and related employer rules.
See how PayDay can help your team organize employee payroll, calculations, deductions, records, pay schedules, state withholding, and multi-location workflows in one connected process.
Start with PayDayThis page provides general payroll information and is not legal, tax, or accounting advice. Rules, rates, filing requirements, and agency guidance can change. Verify current requirements with the Hawaii Department of Taxation, the Hawaii Department of Labor and Industrial Relations, the Hawaii new-hire reporting statute, the IRS, and other agencies that apply to your business.
Last reviewed: August 31, 2026