Section 18-235-61-09 - Withholding exemptions(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.
Haw. Code R. § 18-235-61-09
[Eff 2/16/82; am and ren § 18-235-61-09 10/13/94] (Auth: HRS §§ 231-3(9), 235-61, 235-118) (Imp: HRS §§ 235-61 to 235-67)