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Free Hawaii payroll tax
calculator (and HI tax rates)

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

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We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: May 6, 2024

We want you to focus on your business without having to worry about payroll taxes, so we’ve designed a nifty payroll calculator that can figure out all of the federal and Hawaii state payroll taxes for you and your employees. All you have to do is input wage and W-4 information for each employee into the calculator, and it will do the rest of the work for you.

Federal payroll taxes for Hawaii employers

First of all, let’s give Uncle Sam his due. Here’s a quick rundown of the components that go into federal tax withholdings. For a more detailed explanation on all of the steps below, head on over to our comprehensive step-by-step guide.

  • Gross wages, which is simply the amount of money an employee has earned during the last pay period.
    • For hourly employees, multiply the number of hours worked by their pay rate — and make sure you don’t forget to take overtime into consideration.
    • For salaried employees, divide each employee’s annual salary by the number of pay periods you have over the course of a year.
    • Bonuses, commissions, and tips are all part of gross wages as well (We also have a net to gross pay calculator if you want to give it a try).
  • Subtract any pre-tax withholdings. If your employees have 401(k) accounts, flexible spending accounts (FSA) or any other pre-tax withholdings, subtract them from gross wages prior to applying payroll taxes.
  • Deduct federal income taxes, which can range from 0% to 37%. We won’t get into the nitty-gritty here, but you can find further withholding information through the IRS Publication 15-T.
  • Deduct and match any FICA taxes to cover Medicare and Social Security taxes:
    • For Social Security tax, withhold 6.2% of each employee’s taxable wages until they have earned $168,600 in a given calendar year. Employers must match this tax.
    • For Medicare tax, withhold 1.45% of each employee’s taxable wages until they have earned $200,000 in a given calendar year. Employers also must match this tax. For employees who earn more than $200,000 per year, you’ll need to withhold an Additional Medicare Tax of 0.9%, which brings the total employee Medicare withholding above $200,000 to 2.35%. Employers are not responsible for paying the Additional Medicare Tax.
  • Pay FUTA unemployment taxes, which is 6% of the first $7,000 of each employee’s taxable income, which comes out to a maximum tax of $420 per employee per year. Only employers are responsible for paying this tax. FUTA taxes come with a huge caveat that you will want to know about. You can claim a tax credit of up to 5.4% for state unemployment tax you pay, as long as you pay in full and on time. It’s an easy way to save a whopping 90%, so make sure you take advantage! Because only you as the employer are responsible for paying FUTA taxes, you don’t need to withhold FUTA from your employees’ paychecks.
  • Subtract any post-tax deductions. Most of your employees won’t have any post-tax deductions, but you might need to withhold things like court-ordered wage garnishments, child support, etc. Make sure you take these into consideration as well.

Keep in mind

Workers’ compensation is required in most states, and it’s no different in Hawaii. Learn how policies work, how this type of coverage protects employees from workplace injuries and illnesses, and what employers should know in our guide to Hawaii workers’ compensation insurance.

Hawaii state payroll taxes

Now that we’re done with federal taxes, let’s look at Hawaii state income taxes. Hawaii charges a progressive income tax, broken down into a whopping 12 tax brackets, and they range from 1.4% on the low end to 11% on the high end. Employees who earn more than $200,000 a year will hit the highest tax bracket.

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Hawaii state unemployment insurance (SUI)

As an employer in Hawaii, you have to pay unemployment insurance to the state. The 2024 tax rates range from 1.7% to 6.2% on the first $59,100 in wages paid to each employee in a calendar year.

  • If you’re a new employer (congratulations!), you pay a flat rate of 3%.
  • In addition, you are responsible for paying what’s called the Employment and Training Assessment (E&T) Rate, which is 0.01%.
  • For the complete SUI tax rate schedule, head on over to the official State of Hawaii unemployment insurance website.

 

Cut those paychecks

That’s all she wrote! You’ve checked it off your to-do list so you can move onto the important things. Once each employee’s net pay is calculated (after taking deductions and withholdings into consideration), you’re in the clear. All you have to worry about is getting your employees paid on time as well as setting aside whatever you owe in FICA and unemployment taxes. Those numbers can add up quickly! You will need to fill out Form 941 to file federal taxes on a quarterly basis, and complete Form 940 to report your annual FUTA liabilities. You can pay taxes online using the EFTPS payment system. All the IRS employment tax due dates can be found here.

More Hawaii payroll tax resources:

As if that wasn’t enough, here are some helpful links that can if you would like to learn more about Hawaii payroll taxes:

 

Department of Taxation (800) 222-3229 | Register Your Business | Withholding Tax

 

Department of Labor and Industrial Relations (808) 586-8915 | Unemployment Insurance Express | Employer Website

 

These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.

More helpful payroll calculators for Hawaii employers

Employers in Hawaii can use the calculator at the top of this page to quickly figure out their employees’ gross pay, net pay, and deductions (and feel confident when cutting paychecks). That being said, there can be times when companies need to delve a little deeper into the numbers. For example, do you occasionally reward your top-performing employees with bonuses? Remember that these payments are supplemental wages in the eyes of the IRS and require taxes to be withheld. Additionally, you may need to calculate an employee’s final paycheck if they take a position with another company. So, if you can use a little more help managing the math, check out some of the calculators listed below.

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Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.