Hawaii Administrative Rules › Title 18 - DEPARTMENT OF TAXATION › Chapter 235 - INCOME TAX LAW › Subchapter 3 - INDIVIDUAL INCOME TAX LAW › Section 18-235-61-09 - Withholding exemptions

Current through June, 2024
(a) In general. In
				order for an employer to determine the correct amount of taxes to withhold from
				an employee's wages, each employee shall complete Form HW-4 (Withholding
				Exemption and Status Certificate) or forms prescribed by the department for
				each employer who is required to withhold taxes from the employee's wages. Form
				HW-4 shall show the employee's marital status, the number of exemptions the
				employee qualifies for, the employee's address, social security number, and
				signature. If an employee does not furnish Form HW-4 to the employer, the
				employer shall withhold tax as if the employee is single and claims no
				withholding exemption. At the election of the employer, commercially printed
				forms substantially the same as Form HW-4 may be used. However, federal Form
				W-4 may not be used.
(b) Exemptions
				claimed by employee. The number of withholding exemptions claimed by an
				employee shall not exceed the number of exemptions for which the employee
				qualifies. If the employee is married, the employee may claim any exemptions to
				which the employee's spouse is entitled, but only if the employee's spouse has
				not already claimed the exemptions.
(c) No Form HW-4 in effect. The first HW-4
				form furnished by the employee shall be effective for the first payroll period
				ending on or after the date on which the form is furnished to the employer. If
				wages are paid without regard to a payroll period, Form HW-4 shall be effective
				for the first payment of wages on or after the date on which it is furnished to
				the employer.
(d) Amending Form
				HW-4; effective date. If an employee chooses to amend an existing Form HW-4, it
				shall be effective no later than the first payment of wages made on or after
				the thirtieth day after the amendment is made. If wages are paid without regard
				to a payroll period, then Form HW-4 shall be effective for the first payment of
				wages. At the election of the employer, however, Form HW-4 may be made
				effective prior to this date.
(e)
				Change in exemption status, number of exemptions. In general, if the number of
				exemptions the employee may claim increases, Form HW-4 may be amended to
				reflect the change. If, however, the number of exemptions the employee may
				claim decreases, or there is a change in the taxpayer's marital status, the
				employee shall amend Form HW-4 to reflect the change within ten days after the
				change occurs.
Where changes do not affect the amount of tax to be withheld
				  until the next calendar year (i.e., death of a spouse or dependent), the
				  employee shall amend Form HW-4 filed with the employer on or before December 1
				  of the year in which the change occurs. If the change occurs in December, the
				  employee shall amend Form HW-4 within ten days after the change occurs.
If an employee no longer qualifies for a complete exemption
				  from income tax withholding, an amended Form HW-4 shall be filed to reflect the
				  change and allow for withholding of taxes.