Local Since 1969
Payroll processing, tax payments, W-2s, 1099s, direct deposit, and Hawaii payroll filings handled by a Honolulu team that has served local businesses since 1969. You run your business. We keep payroll accurate and on time.
Full Service
You send us hours. We handle every step after that. Every pay period, every quarter, every year-end deadline.
What Makes Hawaii Different
Most states have two or three payroll obligations. Hawaii has five. Miss one and you're out of compliance, sometimes without knowing it until the state sends a letter.
Hawaii uses its own withholding tables and form HW-4 (not the federal W-4). Employers file HW-14 returns and deposit withheld taxes on a schedule set by the Hawaii Department of Taxation. Get the schedule wrong, and penalties add up fast.
Employers pay Hawaii unemployment tax and file UC-B6 quarterly reports with the Department of Labor and Industrial Relations (DLIR). New employer rates, experience rating adjustments, and the taxable wage base change annually. We track it all.
Hawaii is one of only five states that require TDI coverage. Employers must either carry a TDI insurance policy or self-insure, and handle employee payroll deductions (0.5% of weekly wages in 2026, capped). National payroll companies routinely miss this one.
Hawaii was the first state to mandate employer-provided health insurance. Any employee working 20+ hours per week for four consecutive weeks must be offered a qualifying health plan. Employers share the premium cost through payroll. The state Prepaid Health Care Advisory Council enforces it.
All Hawaii employers must carry workers’ comp coverage — no exceptions, even for businesses with one employee. Payroll records feed directly into premium calculations. Accurate payroll data keeps your premium right and avoids audit surprises.
Pacific Data Services has handled all five layers since 1969. When clients switch to us from national providers, these are the obligations we most often find were being missed or filed late.
Why It Matters
Hawaii has more employer payroll obligations than most states. National payroll companies handle 50 states at once, and Hawaii’s requirements are the ones they miss most often.
Hawaii state withholding and unemployment filings use Hawaii-specific forms and deadlines. We file with the Hawaii Department of Taxation and DLIR every quarter — on time, every time.
We’ve processed payroll for Hawaii businesses for over 55 years. We know what mainland providers miss because we fix their mistakes when clients switch to us.
When something needs attention, you talk to a real person on our Honolulu team. Not a call center, not a chatbot. We know your account and we pick up the phone.
Month-to-month pricing. No setup fees, no exit penalties, no hidden charges. You always know exactly what you are paying before the bill arrives.
Why It Matters
450+ Hawaii businesses trust PDS. Here’s why they stay.
Your account is handled by the same local person every pay period. When something changes — new hire, rate adjustment, a question at 4 PM on a Friday — you call and someone answers who already knows your file.
Month-to-month. No setup fees. No exit penalties. We’ve kept clients since 1969 because we do the job right, not because they’re locked in.
Based in Honolulu, but we serve Hawaii businesses statewide — Oahu, Maui, Big Island, Kauai, and Molokai. Everything handled remotely.
Founded in Honolulu in 1969. We know Hawaii payroll law because we’ve been doing it here, for real Hawaii businesses, for over half a century.
Simple Process
Most new clients are fully running within one week. After that, your only job is sending us hours.
15-minute call. We talk through your headcount, pay schedule, and what you need. If we’re not the right fit, we’ll tell you.
We collect employee information, set up direct deposit, and configure your account. Live in under a week.
By phone, email, or fax. We also pull from time clocks and POS systems. Most clients spend under 10 minutes per pay period.
Calculations, deposits, filings, reports. Your employees get paid. You don’t think about it again until next pay period.
Switch Anytime
You don’t have to wait until January. We bring in your year-to-date payroll figures and pick up exactly where your current provider left off.
Every employee’s year-to-date gross pay, taxes withheld, deductions, and benefits — imported and loaded before your next payroll run. No gaps, no duplicate filings.
We coordinate the handoff so there’s no missed pay period. Your current provider handles their last run, we handle the next one. Your employees won’t notice a thing.
Even if you switch mid-year, we handle the W-2s. We reconcile all wages including what your previous provider processed so everything ties out cleanly.
Common Questions
Full-service payroll covers calculating wages and deductions, direct deposit, federal and state tax deposits, quarterly returns (941, HW-14, UC-B6), and W-2s at year end. We also handle 1099s and ACA filing if needed. You send us hours — we handle everything else.
Most Hawaii small businesses pay $100–$350 per month depending on employee count and pay frequency. No setup fees, no contracts. Call (808) 521-1813 for a free quote.
National companies handle 50 states and routinely miss Hawaii-specific requirements. We have been doing Hawaii payroll correctly since 1969 — and when clients switch to us from national providers, fixing those mistakes is often the first thing we do.
Yes. All Hawaii state withholding deposits, quarterly filings, and unemployment reports are included in full-service payroll. Every deadline is covered — you never have to track it yourself.
Yes. We serve businesses on all islands — Oahu, Maui, Big Island, Kauai, and Molokai. Everything is handled remotely; you never need to come in.
Yes. We import your year-to-date payroll data and pick up exactly where your current provider left off. No missed pay periods, no duplicate filings. W-2s at year end will be complete and accurate.
Hawaii Temporary Disability Insurance (TDI) provides partial wage replacement for employees who cannot work due to a non-work-related illness or injury. Hawaii is one of only five states that require it. Employers must carry a TDI policy or self-insure, and handle the employee payroll deduction — 0.5% of weekly wages in 2026, subject to a weekly cap. We track TDI deductions and ensure compliance as part of standard payroll processing.
Hawaii’s Prepaid Health Care Act requires employers to provide health insurance to any employee working 20 or more hours per week for four consecutive weeks. Employers share the premium cost through payroll deductions. Hawaii was the first state to mandate employer-provided health insurance, and compliance is monitored by the state Prepaid Health Care Advisory Council. We handle the payroll deduction tracking for PHCA as part of full-service payroll.
Local. Personal. Since 1969.
Month-to-month. No exit fees. The only reason we’ve kept clients since 1969 is because we do the job right, not because they can’t leave.
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