How Hawaii withholding is handled
Hawaii’s annualized payroll method uses HW-4 allowances and a separate $4,350 withholding allowance. TDI is entered from payroll because the actual employee premium depends on the plan.
A state withholding example
Weekly taxable pay of $500, single and three HW-4 allowances gives $9.58 state income withholding before additional withholding.
Coverage limits
Enter a confirmed TDI charge. The employee share is constrained by plan cost and weekly limits; do not assume a flat percentage of monthly pay. General exemption claims are unsupported.
Regular resident W-2 wages only. Use confirmed local/other payroll charges where required. No tax-return, reciprocity, nonresident-alien or special-occupation calculations. Benefit entries must qualify under your employer’s plan.
Official sources
Sources reviewed August 31, 2026. Read the complete method and privacy boundaries.