United States – Hawaii

Employment

There is no official form of employment contract – it can be orally or written.

Payroll

Salaries are paid semi-monthly (twice a month), but employees can choose to be paid monthly under special election procedure.

HR & Labor

Working Hours: Full time employment is 40 hours per week. Under federal law, employers are required to pay non-exempt employees 150% times the employee’s regular hourly rate for any hours worked over 40 during the week.
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Minimum Working Age: An employee can be 14 years of age if they are employed outside of school hours, they can officially be employed during school hours at the age of 16.

Immigration

In order to work legally in the United States of America, an employee must be a citizen of the US, have a permanent resident status (Green Card), H-1B visa or L-1 visa.

Minimum Wage

Minimum wage $9.25 per hour.

Pension Fund

Employer has to contribute 24.8% of the employee's wages.

Employee has to contribute 9.8% of his/her wages.

Severance Payments

There is no official state or federal law regarding severance payments. It depends on the company’s policies.

Advance Notice

There is no official notice period, but general practice is 2 weeks.

Termination Procedure

An employee can be terminated at any time as they are considered “at will employees”. No specific termination policies.

Vacation Days

There is no official law regarding vacation days for employee. Each employer decides the number of days upon hiring the employee.

Sick Days

No official law regarding sick days.

Public Holidays

There are 13 official paid public holidays. Private employers are not required to provide days off and or extra pay for work on these days.

Expat Benefits

There are no official expat benefits. However different companies can offer special benefits for the expats working for them. Benefits differ from one company to another.

Additional Employee Withholdings

Federal:
1) Medicare - 1.45%
2) Social Security - 6.2%
3) Unemployment Tax - 6.0% and maximum taxable earnings are $7,000
State:
1) Unemployment Insurance - 2.4%

Federal:
1) Medicare - 1.45% (additional 0.9% contribution for employees earning less than $200,000)
2) Social Security - 6.2% with salary ceiling of $118,500
3) Unemployment Tax - 0%
State:
1) Unemployment insurance - Employees can contribute voluntarily.

Social Security

As of 2011, after the Tax Relief, Unemployment Insurance Re-authorization and Job Creation Act of 2010, the Social Security tax rate is 4.2 percent of an employee's wages.
In addition, there is a limit to the amount of wages that are subject to Social Security taxes. In 2016, the taxable wage base is be $118,500

VAT / State Sales Tax

There is no state sales tax in Hawaii. Hawaii does however have GET - General Excise Tax. GET in most of Hawaii is 4% (in Oahu is 4.5%).