Hiring your first employee in Hawaiʻi: the ten-step checklist

Ten registrations and forms across six agencies. Here is the order, the agency, and the link for each.

Hiring your first employee in Hawaiʻi takes ten steps across six agencies: a federal EIN, state withholding and unemployment accounts, four required protections (workers' compensation, temporary disability insurance, prepaid health care, and the new hire report), the minimum wage, the posters, and Form I-9. Each step below names the agency and the link.

Before the offer: three accounts

1. Federal EIN. Apply online at the IRS. It is free; the IRS warns that sites charging for an EIN are not the IRS. The online tool runs Monday to Friday 6:00 a.m. to 1:00 a.m., Saturday 6:00 a.m. to 9:00 p.m., and Sunday 6:00 p.m. to 12:00 a.m. Eastern, and issues the number in the same session. irs.gov

2. Hawaiʻi withholding account. Employers must withhold Hawaiʻi income tax from wages for work done in the state. Register through Hawaii Tax Online ("Register New Business") or Form BB-1. Withholding registrations get no license document, but you still must register and pay. Returns are quarterly on Form HW-14, due April 15, July 15, October 15, and January 15; payment dates differ, so read Booklet A. W-2 or HW-2 forms go to the state and the employee by January 31. tax.hawaii.gov

3. Unemployment insurance account. If you have employees working in Hawaiʻi, in most cases you owe unemployment contributions. The owner creates a profile at uiclaims.hawaii.gov and can authorize a bookkeeper or CPA to file. Reports are quarterly on Form UC-B6, and a liable employer files every quarter even when no wages were paid. labor.hawaii.gov/ui

Before the first day: four protections

4. Workers' compensation. Any employer with one or more employees, full-time or part-time, permanent or temporary, must carry it. Most buy a policy from a carrier authorized in Hawaiʻi. The employee cannot be asked to pay any part of the premium. After a work injury, file Form WC-1 within seven working days. labor.hawaii.gov/dcd

5. Temporary disability insurance (TDI). Partial wage replacement for an off-the-job injury or illness, including pregnancy. Buy a plan from an authorized TDI carrier. An employee qualifies after 14 weeks of Hawaiʻi work with at least 20 paid hours and at least $400 in each week. You may pay it all or split it equally, but the employee's share cannot exceed 0.5 percent of weekly wages or the maximum weekly deduction. labor.hawaii.gov/dcd

6. Prepaid health care. Required for employees who work at least 20 hours a week and earn at least 86.67 times the state minimum wage per month. Check the current monthly figure at the DLIR link below. Coverage starts after four consecutive weeks. You pay at least half the premium; the employee's share is capped at the lesser of half the premium or 1.5 percent of monthly gross earnings. An employee with other qualifying coverage may waive on Form HC-5 each calendar year. labor.hawaii.gov/dcd

7. New hire report. Every Hawaiʻi employer reports each new hire to the Child Support Enforcement Agency within 20 days of the first day of work: employee name, address, and Social Security number, first day of work, and your business name, address, and EIN. One method: add your employer details to the employee's completed W-4 and fax it to (808) 692-7001. The late-filing penalty is $25. ag.hawaii.gov/csea

On day one: paper and pay

8. Form I-9 and Form HW-4. The employee completes I-9 Section 1 no later than the first day of work. You examine original documents and complete Section 2 within three business days of the start date. Keep the form three years from hire or one year after separation, whichever is later. Use the edition dated 01/20/25. uscis.gov/i-9. For state withholding, the employee gives you a completed Form HW-4 before starting work. tax.hawaii.gov

9. Minimum wage. $16.00 an hour from January 1, 2026, rising to $18.00 on January 1, 2028. Overtime is generally due after 40 hours in a workweek. Tip credit is allowed only under specific conditions; read the tip credit notice first. labor.hawaii.gov/wsd

10. Posters. The state Labor Law Poster covers wage and hour, disability compensation, occupational safety and health, employment discrimination, unemployment insurance, and plant closings. Download each section from the DLIR poster page. labor.hawaii.gov/labor-law-poster. Federal posters (FLSA, OSHA, EPPA, USERRA, and others) download free through the elaws Poster Advisor. dol.gov. Post both where employees can read them.

A calendar to keep

• Every quarter: HW-14 to the Department of Taxation and UC-B6 to Unemployment Insurance, even with no wages.
• January 31: W-2 or HW-2 to the state and each employee.
• Within 20 days of each hire: new hire report.
• Within 3 business days of each hire: I-9 Section 2.
• Within 7 working days of any work injury: Form WC-1.
• Every calendar year: a fresh HC-5 from any employee who waives health coverage.

Hiring is one of the five systems every Hawaiʻi business runs on; to see where the other four stand, the ten-second reading is free.

Questions owners ask

Does a part-time employee trigger all of this? Workers' compensation applies from the first employee, full-time or part-time. The new hire report, I-9, withholding, and unemployment registration apply to any employee. TDI and prepaid health care carry hour and wage thresholds, so a short-hours hire may fall below them.

Can I skip prepaid health care if the employee is covered through a spouse? An employee covered as a dependent under a qualified plan can waive, but only by filing Form HC-5 with you, renewed every calendar year. Without a current HC-5 on file, the obligation stays with you.

Can the employee pay part of workers' comp or TDI? Workers' compensation, no; the law prohibits any employee contribution. TDI, yes, up to half the cost and no more than 0.5 percent of weekly wages or the maximum weekly deduction.

Where do I find the exact tax rates and caps? They change each year. Withholding tables are in Booklet A on the withholding page above. The TDI weekly caps are set annually; check the current figures at labor.hawaii.gov/dcd.

Sources

All fetched September 14, 2026.

• IRS, Get an EIN: free, online, tool hours. irs.gov
• Hawaiʻi Dept. of Taxation, Withholding for Employers: HW-14 due dates, Jan 31 W-2/HW-2 deadline. tax.hawaii.gov
• Hawaiʻi Dept. of Taxation, Licensing: Hawaii Tax Online or BB-1; no license document for withholding. tax.hawaii.gov
• Hawaiʻi Dept. of Taxation, Withholding for Employees: HW-4 before work starts. tax.hawaii.gov
• DLIR Unemployment Insurance, New Employer Registration: uiclaims.hawaii.gov, quarterly UC-B6, file even with no wages. labor.hawaii.gov
• DLIR, About Workers' Compensation: one-employee rule, no employee contribution, WC-1 in 7 working days. labor.hawaii.gov
• DLIR, About TDI: 14 weeks, 20 hours, $400 test; 0.5 percent cap. labor.hawaii.gov
• DLIR, About Prepaid Health Care: 20 hours, 86.67 times minimum wage, four weeks, 50 percent and 1.5 percent rules, HC-5. labor.hawaii.gov
• Child Support Enforcement Agency, New Hires Q and A (FLO100): 20 days, data elements, fax, $25 penalty. ag.hawaii.gov
• DLIR Wage Standards, Minimum Wage and Overtime: $16.00 in 2026, $18.00 in 2028, overtime after 40 hours. labor.hawaii.gov
• DLIR, Labor Law Poster: sections in the state poster. labor.hawaii.gov
• U.S. Dept. of Labor, Workplace Posters: required federal posters, free via elaws Poster Advisor. dol.gov
• USCIS, Form I-9 (edition, retention), Completing Section 1 (first day), and Handbook M-274 Section 2 (three business days). uscis.gov, Section 1, Section 2

Information, not legal, tax, insurance, or financial advice.