The general excise tax (GET) of Hawaii is levied on commercial operations carried out inside the state. It covers the majority of products and services, including retail and wholesale sales as well as some forms of intangible property. The GET is levied on the company rather than the client, hence it is not a sales tax. Instead, companies are permitted to pass on the GET’s cost to customers through higher prices.
Businesses must use certain forms according on their annual gross income for reporting and paying the GET. The G 45 and G 49 forms are two of the most often utilized types. But how do they differ from one another?
Businesses having a gross annual income of less than $100,000 must utilize the G 45 form. These companies must submit the G 45 form every three months since they must file and pay the GET quarterly. The form contains details including the name and address of the company, its gross revenue for the quarter, and how much GET is owed.
The G 49 form, on the other hand, is utilized by companies with a gross yearly income of $100,000 or more. These companies are needed to submit the G 49 form on a monthly basis in order to file and pay the GET. In addition to similar data to the G 45 form, the form breaks down the business’s gross income into different categories, such as retail sales, wholesale deals, and services.
The general excise tax in Hawaii is now 4% for the majority of enterprises, which is the actual tax rate. Higher tax rates, such as 0.5% for insurance commissions and 0.15% for contractors, are, however, applicable to some industries. Businesses should be aware of their sector-specific tax rates and factor them into their GET calculations.
You can locate your Hawaii general excise tax number on your Hawaii Tax Online account if you’re unsure of it. You can submit and pay for your GET electronically using this account, which streamlines the procedure.
Hawaii has extended the filing date for taxes until 2021. For both G 45 and G 49 filers, the new due date for submitting and paying the GET is July 20, 2021. This extension was implemented to offer assistance to companies affected by the COVID-19 pandemic.
In conclusion, it is critical for companies doing business in Hawaii to comprehend the distinction between G 45 and G 49. Businesses may comply with state tax rules and avert potential fines by understanding which form to use and when to file. Additionally, the procedure can be streamlined and made more effective by using electronic filing and payment options.