Hawaii Unfiled Payroll Tax Returns Checklist

Hawaii Unfiled Payroll Tax Returns Checklist

What Unfiled Withholding Tax Returns Mean

An unfiled withholding tax return means the Hawaii Department of Taxation has not received the required wage and withholding reports for one or more pay periods from your business. Unfiled status differs from late filing or underpayment because it indicates no return was submitted to the state at all for the applicable period.

Why Hawaii Requires Withholding Tax Filing

Hawaii requires all employers to file withholding tax returns on a regular basis because employee income taxes withheld from paychecks must be reported and remitted to the state.

The state issues unfiled notices when returns are absent from its records after the filing deadline has passed.

Consequences of Not Addressing Unfiled Returns

Failure to address unfiled withholding tax returns typically results in escalating state action. The

Hawaii Department of Taxation generally sends written notices to the last known business address requesting compliance. If responses do not occur or returns remain unfiled, the state may assess taxes based on available information under Hawaii Revised Statutes Section

235-107, assess penalties, and add interest to the account. Collection actions may follow, including wage levy, bank levies, or business license suspension.

What an Unfiled Return Notice Does Not Mean

An unfiled withholding tax return notice does not mean criminal charges have been filed against you or your business. It represents an administrative compliance matter requiring you to file missing returns and address any tax liability.

Criminal penalties exist under Hawaii law for willful failures but are separate from routine unfiled return administrative processes. Hawaii uses the notice as formal notification that returns are missing and compliance is required.

Steps to Take After Receiving an Unfiled Return Notice

1. Locate and review the notice: Find the official notice from the Hawaii Department of

Taxation and identify the specific tax periods covered by the unfiled return notice. Note any filing deadline mentioned in the correspondence. Record the withholding account number and case reference information. Keep the notice accessible for reference throughout the process.

2. Gather payroll records for unfiled periods: Collect all payroll documentation for the unfiled periods, including pay stubs, payroll registers, and timesheets. Locate W-2 forms or HW-2 forms issued for the periods in question.

Compile records of taxes withheld from employee paychecks for each pay period.

Organize documents in chronological order by pay period to facilitate accurate reporting.

3. Contact the Hawaii Department of Taxation: Call the Department of Taxation to confirm your account status and verify which returns have been received. Ask if the

Department has issued any estimated tax assessments based on available information.

Request the current Form HW-14 and instructions for filing unfiled returns. Inquire about penalties, interest, and available payment arrangements for any amounts owed.

4. Identify all unfiled return periods: Create a list of all periods for which returns were not filed based on the notice and Department records. Compare the unfiled periods listed in the notice against your payroll records to verify accuracy.

Determine whether your business filing frequency is quarterly, as required for most

Hawaii employers. Note any periods during which your business was not operating or had no employees.

5. Calculate tax information using payroll records: Obtain copies of previously filed

Form HW-14 returns to understand the format and required information. Calculate total wages paid for each unfiled period using actual payroll records.

Calculate total taxes withheld from employees for each period based on documented withholding. Do not estimate or guess at amounts; use actual payroll records to ensure accuracy.

6. Prepare Form HW-14 for each unfiled period: Use the current Hawaii Form HW-14 provided by the Department of Taxation for each unfiled quarterly period. Enter wage and tax information for each period on the correct form accurately.

Include your employer identification number, business name, address, and withholding account number on each return. Report the beginning and ending dates for each quarterly filing period.

7. Submit the returns to the Department: Determine the correct mailing address or electronic filing method from the Hawaii Department of Taxation website or instructions.

Make copies of all completed returns for your records before submission.

Form HW-14 must be filed electronically if your withholding tax liability exceeds forty thousand dollars annually. Keep proof of submission, including confirmation numbers for electronic filing.

8. Confirm receipt and address payment obligations: Wait the amount of time the state indicates for processing, and then call the Department of Taxation to verify the returns were received. Request a statement of any taxes, penalties, and interest owed based on the filed returns. Ask about payment options, due dates, and whether payment plans or installment agreements are available.

9. Establish ongoing compliance: Set up a system to track filing deadlines for Form

HW-14, which are due quarterly on April 15, July 15, October 15, and January 15. File all future returns on time to avoid additional penalties and enforcement actions.

What Happens After Filing

After unfiled returns are submitted, the Hawaii Department of Taxation processes them and reviews the information for accuracy and completeness. Processing times vary based on volume and whether additional information is required.

The state may adjust amounts based on examination of records if the filed information differs from available data. A follow-up notice will typically be issued showing taxes, penalties, and interest owed, along with payment instructions.

Common Mistakes to Avoid

Missing state deadlines can trigger additional enforcement action. Filing incomplete returns may result in rejection or correction by the state, extending the resolution timeline.

Guessing or estimating amounts instead of using actual payroll records creates additional problems during Department review. Ignoring follow-up notices from the Department can result in escalated collection action.

Moving Forward

Unfiled withholding tax returns require prompt attention and organized action. Gathering accurate payroll records, contacting the Hawaii Department of Taxation directly, and filing complete Form HW-14 returns for each missing period moves you toward compliance.

Facing State Enforcement or Payroll Tax Issues?

If you’ve received a state tax notice and aren’t sure how to respond, we can help you review your options and next steps.