Hawaii Payroll Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

1. Choose Employees from the Accounts menu.
2. Locate the employee record.
3. Click the Payroll Setup button.
4. Enter the employee's marital status into the Marital Status field.
5. Enter the number of federal dependents into the Federal Exemptions field.
6. Enter the number of Hawaiian dependents into the State Exemptions field.
7. Enter the Hawaii Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
8. Click OK.

In 2010, the Hawaii SUTA tax (unemployment insurance) applies to the first $38,800 in wages for each employee (even higher than the 2007 cutoff amount, which was greatly reduced in 2008 and 2009). In 2009 the starting rate for a new company is 4.0%. After the first year it varies from 0% up to a maximum rate of 5.4%, depending on the company's past experience rating.

To enter your Hawaiian state SUTA tax rate into the Goldenseal payroll software, follow these steps:

1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
2. You'll see a list of Tax Items. Locate the Hawaii SUTA tax in the list, and double-click on it. HINT: If you don't see the state SUTA in the list, you'll need to import Hawaiian payroll info first.
3. Enter the percentage rate that you pay into the percentage field to the right of Calculation method.
4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Hawaii also has a .01% Employment and Training Tax (E&T).

Employers are required to provide Temporary Disability insurance (TDI) for all employees (with a few exceptions). You may deduct up to 50% of the cost of this insurance from your employees. You'll need to compute the proper withholding for the employee portion, using either a percentage or a flat dollar amount. The state does not provide a specific method for computing the employee portion of this insurance, but you should probably base it on the method used by your insurance carrier to calculate the rate.

To enter an employee deduction for disability insurance into the Goldenseal payroll software, follow these steps:

1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
2. You'll see a list of Tax Items. Locate the Hawaii Disability tax in the list, and double-click on it. HINT: If you don't see the state SUTA in the list, you'll need to import Hawaiian payroll info first.
3. Choose a calculation method (either a percentage, or a dollar amount).
4. Enter the amount you will withhold.
5. Click OK.

Use the following to determine the value for the Marital Status popup menu in each Employee account:

• Single- single employee with one personal exemption
• Married- married employee with two personal exemptions
• Dual Income- married employee with one personal exemption
• Head of House- employee claims Head of Family status
• Other- not used

Tax Forms-- 800 222-3229
SUTA rate info-- 808 586-8842

Hawaii Department of Taxation-- Taxpayer Service Branch
PO Box 259 Honolulu HI 96809

Gecko.