STAND. COM. REP. 3104

Honolulu, Hawaii

, 2004

RE: H.B. No. 2511

S.D. 1

 

 

Honorable Robert Bunda

President of the Senate

Twenty-Second State Legislature

Regular Session of 2004

State of Hawaii

Sir:

Your Committee on Ways and Means, to which was referred H.B. No. 2511 entitled:

"A BILL FOR AN ACT RELATING TO INCOME TAX WITHHOLDING,"

begs leave to report as follows:

The purpose of this measure is to conform the state withholding tax remittance date for employers with an annual state withholding tax liability exceeding $40,000 to the semi-weekly remittance date required under the federal employment tax remittance due date policy.

Your Committee finds that on the federal level, employers with federal withholding tax liability of $50,000 to $100,000, are required to remit payments on or before the following Wednesday if wages were paid on Wednesday, Thursday, or Friday; or on or before the following Friday, if wages were paid on Saturday, Sunday, Monday, or Tuesday. Under existing state law, employers with more than $5,000 in annual withholding tax liability are required to file returns on a monthly basis.

Your Committee finds that the lower threshold of $40,000 is necessary because the state wage withholding consists of only income tax, while federal wage withholding consists of income tax, social security tax, and Medicare tax.

Your Committee has amended this measure by lowering the annual state withholding tax liability threshold from $40,000 to $20,000, and by conforming the electronic funds transfer requirement to remit withholdings to the Department of Taxation to that threshold.

As affirmed by the record of votes of the members of your Committee on Ways and Means that is attached to this report, your Committee is in accord with the intent and purpose of H.B. No. 2511, as amended herein, and recommends that it pass Second Reading in the form attached hereto as H.B. No. 2511, S.D. 1, and be placed on the calendar for Third Reading.

Respectfully submitted on behalf of the members of the Committee on Ways and Means,

____________________________

BRIAN T. TANIGUCHI, Chair