Overview

Capital

Currency United States Dollar (USD)

Taxes

Employer 6.20% - Social Security Tax
1.45% - Medicare Rate
Up to 5.63% - State

Employee 6.20% - Social Security Tax
1.45% - Medicare Rate
Up to 5.63% - State

Termination

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

Mandatory Benefits

Pension Fund Employer:has to contribute 24.8% of the employee's wages.
Employee:has to contribute 9.8% of his/her wages.

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

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

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

Minimum Wage

General Minimum wage $9.25 per hour.

Non Mandatory

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.

Payroll

Additional Employee Withholding

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.

VAT

General 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%).