.png)
Hawaii has one of the US’s highest income tax rates (top 11%), mandatory Prepaid Health Care, TDI, and one of the highest SUI wage bases ($56,700). Rippling handles Hawaii Department of Taxation, HIDLIR, TDI, and PHC compliance.
Hawaii is a unique island economy with strengths in tourism, defense, agriculture, and a small but growing technology sector in Honolulu. Hawaii payroll is among the most complex in the US: a 12-bracket income tax (top rate 11%), mandatory Prepaid Health Care (PHC) for employees working 20+ hours/week, mandatory Temporary Disability Insurance (TDI), and a very high SUI wage base ($56,700). Hawaii’s cost of living is the highest in the US, requiring above-average compensation benchmarks.
Rippling’s Hawaii payroll module provides:
| Contribution | Rate | Notes |
|---|---|---|
| FUTA | 6.0% (net 0.6%) | After SUTA credit; first $7,000 |
| HI SUI (HIDLIR) | New employer 2.4% | On first $56,700 of wages (2024) — one of the highest wage bases in the US |
| Hawaii TDI (employer) | Cost above employee contribution | Employer must fund TDI coverage above employee’s 50% share of premium |
| Hawaii PHC | Up to 1.5% of employee wages | Employer pays at least 50% of health insurance premium for 20+ hour/week employees |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% | No wage base limit |
| Workers’ Compensation | Varies by risk class | Mandatory |
.svg)
| Contribution | Rate | Notes |
|---|---|---|
| Federal Income Tax | Graduated 10–37% | Per W-4 |
| Social Security | 6.2% | Up to $168,600 (2024) |
| Medicare | 1.45% + 0.9% surtax | Surtax above $200K single |
| Hawaii State Income Tax | 1.4%–11% | 12-bracket progressive; top rate 11% on income above $400,000 single — one of the highest in the US |
| Hawaii TDI (employee) | Up to 0.5% of wages | Capped at $5.88/week (2024) |
| Hawaii Income (Single, 2024) | HI Rate |
|---|---|
| Up to $2,400 | 1.4% |
| $2,401–$4,800 | 3.2% |
| $4,801–$9,600 | 5.5% |
| $9,601–$14,400 | 6.4% |
| $14,401–$19,200 | 6.8% |
| $19,201–$24,000 | 7.2% |
| $24,001–$36,000 | 7.6% |
| $36,001–$48,000 | 7.9% |
| $48,001–$150,000 | 8.25% |
| $150,001–$175,000 | 9% |
| $175,001–$400,000 | 10% |
| Above $400,000 | 11% |
HI withholding remitted to Hawaii Department of Taxation. Annual HW-3 reconciliation.
Final Pay: Hawaii requires final pay on the next regular payday, or immediately upon demand if the employer terminates. Accrued vacation: Hawaii Wages and Hours Law treats promised vacation as wages — must be paid on termination unless a clearly communicated written forfeiture policy exists.
Hawaii’s Prepaid Health Care (PHC) Act requires employers to provide qualifying health insurance coverage to employees who work 20 or more hours per week for 4 or more consecutive weeks. The employer must pay at least 50% of the premium. This applies regardless of employer size — there is no minimum employee count. Hawaii PHC predates the ACA and is more expansive. Rippling helps configure Hawaii PHC compliance.
Hawaii’s Temporary Disability Insurance (TDI) provides up to 26 weeks of partial wage replacement for non-work-related illness or injury. The employee contributes up to 0.5% of wages (capped at $5.88/week in 2024). The employer must provide a TDI plan (private insurer or self-insured) and fund the balance above the employee contribution. Benefits: 58% of average weekly wages up to the maximum weekly benefit ($798/week in 2024).
Hawaii has a 12-bracket progressive income tax with a top rate of 11% on income above $400,000 (single). Hawaii’s top rate is one of the highest in the US. The 12-bracket structure means withholding calculations are complex. Rippling applies Hawaii withholding tables.
Hawaii’s minimum wage is $14.00/hour (January 2024), rising to $16.00/hour (January 2026) and $18.00/hour (January 2028). Maui County, Hawaii County, Kauai County, and Honolulu each follow the state rate. No separate county minimum wages in Hawaii.
