{"id":258,"date":"2025-04-29T20:51:42","date_gmt":"2025-04-29T20:51:42","guid":{"rendered":"https:\/\/s37407.p1377.sites.pressdns.com\/homepay\/hawaii-tax-and-labor-law-summary\/"},"modified":"2025-06-18T03:35:59","modified_gmt":"2025-06-18T03:35:59","slug":"hawaii-nanny-taxes","status":"publish","type":"post","link":"https:\/\/www.care.com\/hp\/hawaii-nanny-taxes\/","title":{"rendered":"2025 Hawaii household employment tax and labor law guide"},"content":{"rendered":"
Families in the Aloha state have specific federal and Hawaii state tax and payroll rules to follow when a caregiver begins working in their home. We have all this information covered for you in this guide so check out the information below that HomePay is here to help with.*<\/p>
We know you’re busy so here’s a quick “to-do” list with links to extra details below.<\/p>
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> 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> 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> 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> 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> Families in Hawaii are required to notify their employee of their rights by sharing these posters<\/a>.<\/p> The current minimum wage in Hawaii is $14.00\/hour.<\/p> 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> 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> 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> 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 EIN & state tax account(s)<\/h3>
Workers’ compensation<\/strong><\/h3>
Disability insurance <\/h3>
Wage notice <\/strong><\/h3>
Employment posters <\/strong><\/h3>
During employment <\/strong><\/h2>
File returns, remit taxes and manage correspondence<\/h3>
Minimum wage rates<\/h3>
Hawaii overtime requirements<\/h3>
State income tax withholding<\/h3>
Health insurance<\/h3>
Optional benefits for your employee <\/strong><\/h2>
Health insurance contributions<\/h3>