Payroll taxes

What are Hawaii employer payroll taxes on a first employee?

· Last updated Nov 2026 · General information, not tax, legal, or insurance advice.

Short answer: on a first Hawaii employee paid $20 an hour for 40 hours a week, employer payroll taxes are $4,222.80 a year. That is $3,182.40 of employer FICA, $42.00 of net FUTA, and $998.40 of Hawaii state unemployment tax at the official new-employer rate of 2.40% on the first $64,500.00 of wages. You will also withhold Hawaii income tax from the employee’s pay and send it to the state. That withheld tax is the employee’s money, not an extra employer cost, so it is left out of the dollar totals below. Hawaii also has Temporary Disability Insurance. Confirm any employer share on the official program page; this site does not invent that rate. Workers’ comp and payroll software are extra costs, not payroll taxes.

Federal employer payroll taxes that apply in Hawaii

When you hire a W-2 employee in Hawaii, the federal employer share has three parts, and they do not change just because the work is in Hawaii:

1. Employer Social Security, 6.2% of wages up to the 2026 Social Security wage base of $184,500 (IRS Publication 15, IRS Topic 751). On $41,600 that is $2,579.20.
2. Employer Medicare, 1.45% of all wages, with no wage-base cap. On $41,600 that is $603.20.
3. FUTA, which is 6.0% on the first $7,000 of wages, usually reduced to a net 0.6% when you pay state unemployment tax on time (IRS Topic 759 (Form 940/FUTA)). For one employee that is $42.00. Credit-reduction states can owe more; check the current IRS credit-reduction list if you are unsure.

Together, those federal employer taxes are $3,224.40 on this $20-an-hour, full-year example. You also withhold the employee share of FICA and any federal income tax; those withheld amounts are the employee’s money, not an extra employer cost.

Hawaii unemployment tax (SUTA)

State unemployment insurance is administered by Hawaii Department of Labor and Industrial Relations. The wage base and new-employer rate below come from the U.S. DOL January 2026 Significant Provisions table (PDF), which is the same source used in this site’s calculator. The DOL directory of state unemployment tax agencies is the official contact list if the agency URL changes.

The official DOL table lists a 2026 Hawaii taxable wage base of $64,500.00 and a new-employer rate of 2.40%. On this example, SUTA is 2.40% × $41,600.00 = $998.40, because only the first $64,500.00 of wages is taxable. Wages above that base still owe Social Security (until the federal Social Security cap) and Medicare, but not this SUTA.

Your assigned rate can be higher or lower than the new-employer rate. Use the percentage on your unemployment insurance notice if it differs.

State income-tax withholding

Employers in Hawaii withhold state income tax from employee wages and send it to the state. The employee completes a state withholding form (or the federal W-4, where Hawaii uses it). The withheld amount is not an employer payroll tax, and this page does not invent a withholding dollar amount because it depends on the employee’s elections and current official tables. Register with the Hawaii tax agency. The IRS list of state government websites is a second official starting point if you need the department’s home page.

Disability, paid leave, and other state payroll contributions

The official new-employer SUTA rate used here is 2.40% on the first $64,500.00 of wages. If your notice shows a different rate, use that rate in the calculator.

Hawaii employers withhold state income tax from employee wages. The amount depends on the employee’s withholding certificate and the current official tables, so this page does not invent a withholding dollar figure. Register and file with the Hawaii tax agency.

Hawaii also runs Temporary Disability Insurance, administered by Hawaii Department of Labor and Industrial Relations. Hawaii requires temporary disability insurance coverage. Confirm current employer and employee shares with the official Disability Compensation Division pages. Official page: Temporary Disability Insurance.

New-hire reporting in Hawaii

Hawaii employers must report a new hire within 20 days of the hire date. That requirement comes from the official ACF State New Hire Reporting matrix, checked in November 2026. File through the official new-hire reporting page. The ACF State New Hire Reporting contacts and program requirements is the directory if the filing site changes.

New-hire reporting is a filing requirement, not a tax. It still belongs on a first-hire payroll checklist because missing the deadline can bring state penalties. See also paperwork to hire your first employee.

Worked example: $20 an hour, 40 hours, Hawaii

This example uses a round $20 wage so you can compare it with the site’s other $20-an-hour pages and with the state payroll taxes for a first employee index. It is not a claim about what helpers in Hawaii earn, and it leaves out workers’ comp, health coverage, retirement, paid time off, and payroll software.

SUTA and FUTA are front-loaded: you pay them only until each wage base is met, so early pay periods cost more than later ones in the same calendar year. Employer Medicare continues all year, and employer Social Security continues until the federal wage base is met.

What this example leaves out

Workers’ compensation is insurance, not a payroll tax. Premiums vary by Hawaii class code, carrier, and payroll, and this site only prefills verified Indiana ICRB advisory rates when you select Indiana. See workers’ comp for a first employee. Overtime, bonuses, and benefits also change the total. For the week-by-week federal pattern at this same wage, see payroll taxes on a $20-an-hour employee.

Other state payroll-tax pages

Every state and the District of Columbia in this series uses the same $20-an-hour example and the same official DOL and ACF sources, with the figures that actually apply in that jurisdiction. Start from the state payroll taxes for a first employee index, or go to Georgia employer payroll taxes or Idaho employer payroll taxes.

Frequently asked questions

Federal figures were checked against 2026 IRS Publication 15 and IRS Topics 751 and 759 in November 2026. State unemployment wage bases and new-employer rates come from the U.S. DOL January 2026 Significant Provisions table. New-hire reporting deadlines come from the official ACF State New Hire Reporting matrix. Confirm the rate on your unemployment insurance notice, and confirm current withholding, disability, and paid-leave rules with the linked state agencies before you hire.