How to Calculate Hawaii Income Tax Withholdings Automatically
Paying employees accurately and on time is very important for any business. ezPaycheck payroll software can help you:
Calcuate Federal tax, Social Security tax, Medicare tax, unemployment tax automatically
Calculate Hawaii payroll income tax withholdings, state unemployement automatically
Calcuate local tax, deductions (such as 401K, insurance) automatically based on your set up
Print tax forms W2, W3, 940 and 941
Here is the guide about how to handle the HI state tax.
ezPaycheck payroll software has been trusted by thousands of successful businesses for more than one decade. It helps you process payroll taxes, print paychecks and file tax forms easily and smoothly.
If you have not installed this software, you can download and try it free for 30 days with no obligation and no credit card needed. This paycheck software is compatible with Windows 10, 8.1, 8, 7, 2003 and Vista systems.
Payroll Software Saves HI Businesses Time and Money by Calculating the Taxes Automatically
EzPaycheck Payroll software is a good choice for many small business employers. Once you set up company and employee, ezPaycheck will calculate Hawaii income tax for you automatically.
Set up Company with the Right Pay Period
Start ezPaycheck application, click the left menu "Company Settings" then click the sub menu "Company" to open the company setup screen. Please make sure you select the correct Pay Period there.
(Click image to enlarge)
Enter the employee Information Correctly
Start ezPaycheck application, click the left menu "Employees" then click the sub menu "Add Employee" to add employee profile. EzPaycheck calculates state tax based on employee address.
Add an Employee and Enter the Tax Option
Add and Print a Paycheck and you will see tax information on paystubs.
Why There Is No Hawaii Withholding Taken out of My Paycheck?
If you see the $0 state tax on the paycheck, do not worry about it. Your employee's income may not be high enough to withhold HI state income tax. You can test it by increasing the pay rate. Or you can refer to the Hawaii tax tables there for more details.