![\"Cross](\"https:\/\/www.care.com\/hp\/wp-content\/uploads\/sites\/3\/2024\/08\/300x250-V2-1.png\")
<\/a><\/figure><\/div>Checklist for Hawaii household employers<\/strong><\/h2>We know you’re busy so here’s a quick “to-do” list with links to extra details below.<\/p>
Beginning of employment <\/strong><\/h3>- Verify caregiver’s work eligibility<\/a>.<\/li>
- Set up EIN & state tax account(s)<\/a>.<\/li>
- Obtain a required workers’ compensation insurance<\/a> policy. <\/li>
- Obtain a disability insurance policy<\/a>.<\/li>
- Provide a wage notice<\/a>. <\/li>
- Display employment posters<\/a>. <\/li><\/ul>
During employment <\/strong><\/h3>- File returns, remit taxes and manage correspondence<\/a>.<\/li>
- Pay at least Hawaii minimum wage<\/a>. <\/li>
- Pay overtime<\/a>, when it applies.<\/li>
- Withhold state income taxes<\/a>.<\/li>
- Health insurance<\/a><\/li><\/ul>
Optional benefits for your employee<\/strong><\/h3>- Health insurance contributions<\/a><\/li>
- Mileage reimbursement<\/a> <\/li><\/ul>
Ending employment<\/strong><\/h3>- Manage unused paid time off<\/a>. <\/li>
- Close down your state employment tax account(s)<\/a>.<\/li>
- Maintain payroll records<\/a>.<\/li><\/ul>
Beginning of employment <\/strong><\/h2>Verify caregiver’s work eligibility<\/h3>
Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they’re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver’s employment eligibility is ever questioned.<\/p>Set up EIN & state tax account(s)<\/h3>
You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p>Workers’ compensation<\/strong><\/h3>Household employers in Hawaii are required to get coverage for workers’ compensation insurance<\/a> if their employee earns $225 or more in a calendar quarter. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online<\/a>, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com<\/a>.<\/p>Disability insurance <\/h3>
The Hawaii Temporary Disability Insurance Program (SDI) provides disability insurance<\/a> benefits to employees who cannot work because of sickness or injury not caused by their job. The SDI program is funded by mandatory payroll deductions from employee wages, but employers need to set up a policy on their own. Information for doing so can be found here<\/a>.<\/p>Wage notice <\/strong><\/h3>Household employers in Hawaii are required to provide their employee with a written wage notice at the time of hire. The wage notice must include:<\/p>
- The employee’s hourly rate of pay.<\/li>
- When paydays will occur (weekly, bi-weekly, etc.).<\/li>
- Employer’s address.<\/li>
- Vacation and sick leave policies.<\/li><\/ul>
Employment posters <\/strong><\/h3>Families in Hawaii are required to notify their employee of their rights by sharing these posters<\/a>.<\/p>During employment <\/strong><\/h2>File returns, remit taxes and manage correspondence<\/h3>- File state employment tax returns throughout the year and remit state employer and employee taxes.<\/li>
- Remit federal employer and employee taxes via 1040-ES<\/a> estimated tax payment voucher four times each year.<\/li>
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>
- Manage ongoing alerts and notices from the state (tax rates and labor law is subject to change at any time).<\/li><\/ul>
Minimum wage rates<\/h3>
The current minimum wage in Hawaii is $14.00\/hour.<\/p>
Hawaii overtime requirements<\/h3>- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.<\/li>
- Live-in employees are required to be paid overtime. <\/li>
- Overtime is not required to be paid when work is performed on a holiday. <\/li><\/ul>
State income tax withholding<\/h3>
Employers in Hawaii are required to withhold state income taxes unless their employee is a certified disabled person or non-resident military spouse. Employers are liable for these taxes if they refuse to withhold them from their employee.<\/p>
Health insurance<\/h3>
Families with only 1 or more employees, whether full time or part time, permanent or temporary, are required to provide health care insurance coverage from 1 of 2 options:<\/p>
- A Department of Labor and Industrial Relations (DLIR)-approved health care plan.<\/li>
- A qualified health plan from HealthCare.gov<\/a>.<\/li><\/ul>
The employer has to pay at least one-half of the premium as long as the employee contributes no more than 1.5% of their wages towards the premium.<\/p>
Optional benefits for your employee <\/strong><\/h2>Health insurance contributions<\/h3>
Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.<\/p>
Families with 2 or more employees have 3 options:<\/p>
- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).<\/li>
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).<\/li>
- Purchase a policy through SHOP (Small Business Health Options Program). <\/li><\/ol>
- Verify caregiver’s work eligibility<\/a>.<\/li>
- Set up EIN & state tax account(s)<\/a>.<\/li>
- Obtain a required workers’ compensation insurance<\/a> policy. <\/li>
- Obtain a disability insurance policy<\/a>.<\/li>
- Provide a wage notice<\/a>. <\/li>
- Display employment posters<\/a>. <\/li><\/ul>
During employment <\/strong><\/h3>
- File returns, remit taxes and manage correspondence<\/a>.<\/li>
- Pay at least Hawaii minimum wage<\/a>. <\/li>
- Pay overtime<\/a>, when it applies.<\/li>
- Withhold state income taxes<\/a>.<\/li>
- Health insurance<\/a><\/li><\/ul>
Optional benefits for your employee<\/strong><\/h3>
- Health insurance contributions<\/a><\/li>
- Mileage reimbursement<\/a> <\/li><\/ul>
Ending employment<\/strong><\/h3>
- Manage unused paid time off<\/a>. <\/li>
- Close down your state employment tax account(s)<\/a>.<\/li>
- Maintain payroll records<\/a>.<\/li><\/ul>
Beginning of employment <\/strong><\/h2>
Verify caregiver’s work eligibility<\/h3>
Before your employee begins to work, you need to fill out Form I-9<\/a> to verify they’re eligible to work in the U.S. The I-9 does not get sent to any government agency but must be presented to authorities if your nanny or senior caregiver’s employment eligibility is ever questioned.<\/p>
Set up EIN & state tax account(s)<\/h3>
You must first apply for a EIN (Employee Identification Number)<\/a> with the IRS. This will be used as your unique ID with both state and federal tax authorities. Then you can open an account with your state taxing authority.<\/p>
Workers’ compensation<\/strong><\/h3>
Household employers in Hawaii are required to get coverage for workers’ compensation insurance<\/a> if their employee earns $225 or more in a calendar quarter. These policies pay for medical expenses and lost wages if an employee has a work-related injury or illness. Obtain an instant quote and purchase a policy online<\/a>, or contact our partner, Clarke White, at 804-267-1210 or wcnanny@allrisks.com<\/a>.<\/p>
Disability insurance <\/h3>
The Hawaii Temporary Disability Insurance Program (SDI) provides disability insurance<\/a> benefits to employees who cannot work because of sickness or injury not caused by their job. The SDI program is funded by mandatory payroll deductions from employee wages, but employers need to set up a policy on their own. Information for doing so can be found here<\/a>.<\/p>
Wage notice <\/strong><\/h3>
Household employers in Hawaii are required to provide their employee with a written wage notice at the time of hire. The wage notice must include:<\/p>
- The employee’s hourly rate of pay.<\/li>
- When paydays will occur (weekly, bi-weekly, etc.).<\/li>
- Employer’s address.<\/li>
- Vacation and sick leave policies.<\/li><\/ul>
Employment posters <\/strong><\/h3>
Families in Hawaii are required to notify their employee of their rights by sharing these posters<\/a>.<\/p>
During employment <\/strong><\/h2>
File returns, remit taxes and manage correspondence<\/h3>
- File state employment tax returns throughout the year and remit state employer and employee taxes.<\/li>
- Remit federal employer and employee taxes via 1040-ES<\/a> estimated tax payment voucher four times each year.<\/li>
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>
- Manage ongoing alerts and notices from the state (tax rates and labor law is subject to change at any time).<\/li><\/ul>
Minimum wage rates<\/h3>
The current minimum wage in Hawaii is $14.00\/hour.<\/p>
Hawaii overtime requirements<\/h3>
- Live-out employees must be paid 1.5x their hourly rate for all hours worked over 40 in a workweek.<\/li>
- Live-in employees are required to be paid overtime. <\/li>
- Overtime is not required to be paid when work is performed on a holiday. <\/li><\/ul>
State income tax withholding<\/h3>
Employers in Hawaii are required to withhold state income taxes unless their employee is a certified disabled person or non-resident military spouse. Employers are liable for these taxes if they refuse to withhold them from their employee.<\/p>
Health insurance<\/h3>
Families with only 1 or more employees, whether full time or part time, permanent or temporary, are required to provide health care insurance coverage from 1 of 2 options:<\/p>
- A Department of Labor and Industrial Relations (DLIR)-approved health care plan.<\/li>
- A qualified health plan from HealthCare.gov<\/a>.<\/li><\/ul>
The employer has to pay at least one-half of the premium as long as the employee contributes no more than 1.5% of their wages towards the premium.<\/p>
Optional benefits for your employee <\/strong><\/h2>
Health insurance contributions<\/h3>
Families with only 1 employee can make contributions toward their employee’s health insurance premiums and treat the amount as non-taxable compensation. In this scenario, neither the employee nor the employer are required to pay any taxes on that portion of the compensation.<\/p>
Families with 2 or more employees have 3 options:<\/p>
- Set up an Individual Coverage Health Reimbursement Arrangement (ICHRA).<\/li>
- Set up a Qualified Small Employer Health Reimbursement Arrangement (QSEHRA).<\/li>
- Purchase a policy through SHOP (Small Business Health Options Program). <\/li><\/ol>
- Each year end, prepare Schedule H and file with Form 1040<\/a>; prepare and distribute Form W-2<\/a> to each employee; file Form W-2 Copy A\/Form W-3<\/a> with the Social Security Administration (SSA).<\/li>
- Close down your state employment tax account(s)<\/a>.<\/li>
- Mileage reimbursement<\/a> <\/li><\/ul>
- Pay at least Hawaii minimum wage<\/a>. <\/li>
- Set up EIN & state tax account(s)<\/a>.<\/li>