In Hawaii, there is a tax on commercial activity known as the General Excise Tax (GET). It is a specific kind of sales tax that is levied against the state’s commercial enterprises’ gross receipts. The value of goods sold, services rendered, and any other commercial activity that creates money are taken into account for determining the GET. GET must be paid by almost all companies doing business in Hawaii, including sole proprietorships, partnerships, corporations, and LLCs.
In Hawaii, the GET rate is 4%. However, depending on the sort of business and the area, some enterprises are liable to a higher rate of GET. Businesses in the counties of Honolulu and Kauai, for instance, must pay an additional 0.5% tax. Additionally, firms engaged in specific activities, such the sale of tobacco or alcohol, may be charged a higher rate of GET.
Businesses must get a GE tax license from the Hawaii Department of Taxation in order to pay GET in Hawaii. Regardless of their size or structure, all firms operating in Hawaii are required to have this license, which must be renewed annually. Filling out a registration form and submitting it to the Department of Taxation are required steps in obtaining a GE tax license. Depending on their level of business activity, enterprises must file tax returns and pay GET on a monthly, quarterly, or annual basis after receiving their license.
People who are employed but do not engage in commercial activities in Hawaii may also be subject to GET. For instance, self-employed workers in Hawaii who are independent contractors, freelancers, or otherwise self-employed might have to pay GET on their earnings. Whether the person lives in Hawaii or not, they must meet this criteria.
Finally, you might need to get a 1099-G form if you received unemployment compensation in Hawaii. When filing your taxes, you must disclose the amount of unemployment benefits you received throughout the year as shown on this form. You can access the 1099-G online system by going to the Hawaii Department of Labor and Industrial Relations website and requesting a 1099-G form there.
In conclusion, practically every company doing business in Hawaii is obligated to pay the general excise tax. This tax is calculated based on the company’s gross revenue and is due on a regular basis. Individuals who work for themselves or through independent contractors and earn money in Hawaii may also be subject to the GET. Businesses must get a GE tax license from the Hawaii Department of Taxation in order to pay GET in Hawaii, whereas recipients of unemployment benefits may also need to obtain a 1099-G form.