Hawaii Payroll Services for Honolulu and All Islands

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 send hours. We handle the rest, on time, every period.

450+
Active Hawaii Clients
55+
Years in Business
5.0★
Google Rating
All
Hawaiian Islands
$0
Setup Fees or Contracts

Everything Included in Hawaii Payroll Services

You send us hours. We handle every step after that, every pay period, every quarter, and every year-end deadline.

Every Pay Period

Calculate all wages, taxes, and deductions
Direct deposit or printed checks
Federal and Hawaii state tax deposits
New-hire reporting to the state
Hawaii-required deduction tracking (TDI, PHCA)

Quarterly & Annual

Federal 941 quarterly payroll tax return
Hawaii HW-14 withholding filings
Hawaii UI reports (UC-B6) to DLIR
W-2s and HW-3 reconciliation at year end
1099s for contractors and vendors
Also running General Excise Tax (GET)? Payroll and GET are separate filings, but the records overlap. Our bookkeeping add-on keeps gross receipts, deductions, and GET liability organized alongside your payroll, so your CPA or tax preparer gets clean numbers instead of a shoebox of receipts each quarter.

Made for 1 to 50 Employee Island Businesses

We work best with small and mid-size Hawaii employers who want payroll off their plate without hiring a payroll department.

Restaurants & Food Trucks

Tip credits, split shifts, and part-time turnover handled correctly every pay period.

Retail & Small Shops

Hourly and salaried staff, seasonal hires, and simple onboarding for new employees.

Contractors & Trades

Crews that move between job sites, plus 1099 subcontractor tracking at year end.

Medical & Dental Offices

Salaried providers, hourly staff, and benefits deductions tracked without errors.

Nonprofits

Grant-funded positions and board-level reporting handled with the same care as any client.

Professional Services

Firms with a handful of employees who want payroll accurate and off their desk for good.

Hawaii’s Five-Layer Payroll System

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.

1. State Income Tax Withholding

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.

2. State Unemployment Insurance (SUI)

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.

3. Temporary Disability Insurance (TDI)

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 platforms routinely miss this one.

4. Prepaid Health Care Act (PHCA)

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, with the employer covering most of the premium through payroll.

5. Workers’ Compensation

All Hawaii employers must carry workers’ comp coverage, no exceptions, even for a single employee. Payroll records feed directly into premium calculations, so accurate data keeps your premium right and avoids audit surprises.

Plus: General Excise Tax (GET)

GET is not a payroll withholding, but nearly every Hawaii employer files it. It's a tax on business gross income rather than a sales tax, filed periodically with the Department of Taxation. We keep the bookkeeping side clean so GET filing season isn't a scramble.

Pacific Data Services has handled these obligations since 1969. When clients switch to us from national providers, this is where we most often find something was missed or filed late.

Why Local Beats Mainland Payroll Software

National platforms are built for 50 states at once. Hawaii's requirements are exactly the ones that fall through the cracks.

A Real Person, Same Day

Call before 3 PM about a new hire, a rate change, or a question on a paycheck, and you'll typically have an answer the same day. You talk to someone in our Honolulu office who already knows your account, not a rotating support queue.

Hawaii-Specific, By Default

TDI deductions, Prepaid Health Care Act tracking, and HW-14 filing schedules are standard practice for us, not an add-on module you have to configure yourself.

GET-Aware Bookkeeping

Mainland software has no concept of Hawaii's General Excise Tax. Our optional bookkeeping service tracks it alongside payroll so nothing gets missed at filing time.

No Surprise Bills

Month-to-month pricing. No setup fees, no exit penalties. You know what you are paying before the bill arrives, not after.

How Onboarding Works

Most new clients are fully running within one week. After that, your only job is sending us hours.

1

Free Consultation

A 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.

2

Quick Onboarding

We collect employee information, set up direct deposit, and configure your account. Live in under a week.

3

Send Us Hours

By phone, email, or fax. We also pull from time clocks and POS systems. Most clients spend under 10 minutes per pay period.

4

We Handle the Rest

Calculations, deposits, filings, reports. Your employees get paid. You don't think about it again until next pay period.

You Can Switch to PDS Any Time of Year

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.

We Import Your YTD Data

Every employee's year-to-date gross pay, taxes withheld, deductions, and benefits are imported and loaded before your next payroll run. No gaps, no duplicate filings.

No Downtime

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.

W-2s Handled at Year End

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.

Rated 5.0 Stars by Hawaii Business Owners

Every review Pacific Data Services has on Google is five stars. We would rather show you the real thing than quote ourselves:

Read our Google reviews

Hawaii Payroll Services FAQ

What do Hawaii payroll services include?

Full-service Hawaii payroll includes calculating wages and deductions, direct deposit or printed checks, federal and state tax deposits, new-hire reporting, quarterly filings (941, HW-14, UC-B6), and W-2s at year end. Pacific Data Services handles all of it for Hawaii businesses since 1969.

How much do payroll services cost in Hawaii?

Most Hawaii small businesses with 1 to 50 employees pay between $100 and $350 per month for full-service payroll, based on headcount and pay frequency. Pacific Data Services prices month-to-month with no setup fees and no long-term contract. Call (808) 521-1813 for a free quote.

Why use a local Hawaii payroll company instead of national software?

National payroll platforms are built for 50 states at once, and Hawaii-specific obligations like TDI payroll deductions, the Prepaid Health Care Act, and HW-14 withholding schedules are the ones they get wrong most often. Pacific Data Services has handled these correctly since 1969, and you reach a real person in Honolulu the same day, not a support queue.

Can I switch payroll companies mid-year?

Yes. Pacific Data Services accepts mid-year switchovers. We import your year-to-date payroll figures and pick up from where your current provider left off, with no missed pay period. W-2s at year end will be complete and accurate.

Does Pacific Data Services help with Hawaii General Excise Tax (GET) too?

Payroll and GET are separate filings, but they touch the same books. Our optional bookkeeping add-on tracks gross receipts, deductions, and periodic GET liability alongside your payroll records so your CPA or tax preparer has clean numbers at filing time. GET returns themselves are filed by you or your tax preparer; we keep the underlying records organized.

Find Us in Downtown Honolulu

Pacific Data Services, Inc.  ·  Kukui Plaza, 50 S Beretania St, Ste C210a, Honolulu, HI 96813  ·  (808) 521-1813  ·  helpdesk@pdspayroll.com

Local. Personal. Since 1969.

Ready to Hand Off Your Payroll?

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.

Get a Free Quote →

Or call (808) 521-1813