Tax Information Release No. 2004-01 - Hawaii Department Of Taxation printable pdf download

Tax Information Release No. 2004-01 - Hawaii Department Of Taxation

KURT KAWAFUCHI

LINDA LINGLE

DIRECTOR OF TAXATION

GOVERNOR

MARIE C. LADERTA

JAMES R. AIONA, JR.

DEPUTY DIRECTOR

LT. GOVERNOR

STATE OF HAWAII

DEPARTMENT OF TAXATION

P.O. BOX 259

HONOLULU, HAWAII 96809

PHONE NO: (808) 587-1510

FAX NO: (808) 587-1560

December 7, 2004

TAX INFORMATION RELEASE NO. 2004-01

RE:

Act 113, Session Laws of Hawaii 2004, Relating to Income Tax Withholding

On June 10, 2004, the Governor signed H.B. No. 2511, S.D. 1, C.D. 1, into law as Act

113. Act 113 amended Hawaii’s Income Tax Law to conform the state withholding tax

remittance due date for employers with an annual state withholding tax liability that exceeds

$40,000, to the semi-weekly remittance due date required under federal employment tax

provisions. Section 231-9.9, Hawaii Revised Statutes (HRS), was also amended to require the

use of electronic funds transfers (EFT) for semiweekly depositors. The Act became effective

upon approval and applies to payroll periods beginning on or after December 31, 2004.

Determination of Tax Remittance Frequency

Act 113 does not change the remittance frequency for employers whose annual state

withholding tax liability is:

Quarterly: less than $5,000 per year, who may continue to remit and file

quarterly; or

Monthly: $40,000 or less per year, who may continue to remit and file by the

15th day of the following calendar month.

If an employer's annual state withholding tax liability exceeds $40,000, the new

semiweekly payment dates shall apply as follows:

Wednesday: if taxes are withheld from wages paid the immediately preceding

Wednesday, Thursday, or Friday; or

Friday: if taxes are withheld from wages paid the immediately preceding

Saturday, Sunday, Monday, or Tuesday.

The Department of Taxation (Department) will require employers who had withholding

tax liabilities in excess of $40,000 in the 2004 tax year to remit taxes on a semiweekly basis for

the 2005 tax year. The Department will not be conforming to the federal four quarter lookback

period under Treas. Reg. § 31.6302-1(b)(4), which determines the status of an employer as a

Tax Information Release No. 2004-01 - Hawaii Department Of Taxation