Virtually all employers are subject to unemployment insurance taxes under the Hawaii Employment Security Law (HI Rev. Stat. Sec. 383-1 et seq.). For example, coverage extends to:
• Anyone employing one or more persons for some portion of a day during the current calendar year;
• Any employer subject to the Federal Unemployment Tax Act (FUTA);
• Any employer of agricultural labor that during the current or preceding year paid wages of $20,000 or more in any quarter, or employed 10 or more in agricultural labor on some day in each of 20 different weeks; and
• Any employer of a domestic servant that pays $1,000 or more in a quarter in either the current or the preceding calendar year (HI Rev. Stat. Sec. 383-1 and HI Rev. Stat. Sec. 383-7).
The law excludes certain services from coverage, including, for example, services performed by:
• Students working for schools, colleges, or universities;
• Real estate and insurance salespersons;
• Vacuum cleaner salespersons paid solely by commission;
• Newspaper distributors who are minors;
• Individuals employed by a foreign government; and
• Services for a family-owned private corporation, organized for profit, that employs family members who own at least 50 percent of the corporate shares (Haw. Rev. Stat. Sec. 383-7).