Hawaii Tax

For Hawaii residents, you specify the employee's status and exemptions.

Deltek Modification Date - 1/04/11

Enter the following field information for residents of Hawaii on the Withholding grid on the Payroll tab of the Employees hub:

Field	Description
Status	Enter the marital status claimed by the employee on the Hawaii Employee’s Exemptions and Status Certificate, Form HW-4. The options are as follows: S: Single M: Married H: Head of Household If the employee did not submit Form HW-4, enter S for the marital status.
Exemptions	Enter the total number of allowances claimed by the employee on Form HW-4. If the employee did not submit form HW-4, enter zero.
Other Exemptions	Hawaii’s tax calculations do not use the Other Exemptions field.

Automatically Calculated Variables

Deltek automatically computes the allowance, which is used in determining the net income tax.

Allowance

The allowance is based on the number of exemptions in the first Exemptions field. It is determined by multiplying the number of exemptions by $1,144.

How Deltek Calculates Tax

To calculate an employee's Hawaii State tax, Deltek does the following:

1. Multiplies the employee's gross pay per pay period by the number of pay periods in a year to determine annualized gross wages.
2. Subtracts the employee's allowance and 401(k) and 125/Cafeteria plan contributions from the employee's annualized gross wages to determine taxable income.
3. Calculates the net income tax, by applying Tax Calculation Method 1 to the taxable income.
4. Divides the net income tax by the number of pay periods in a year to determine the amount to be withheld for the pay period.