Hawaii Unemployment Compensation laws & HR compliance analysis

Hawaii Unemployment Compensation: What you need to know

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:
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• 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;
• Student nurses;
• Hospital interns;
• Newspaper distributors who are minors;
• Casual laborers;
• 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).
Wages. The taxable wage base is determined each year. For the current taxable wage base, visit http://labor.hawaii.gov/ui/tax-rates-and-weekly-benefit-amount. The term “wages” means all remuneration for services from whatever source, including commissions and bonuses, tips or gratuities paid directly to an individual by a customer of the employer and reported ...

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