Hawaii Temporary Disability Insurance Taxes
Employers in Hawaii are required by law to provide TDI (Temporary Disability Insurance) coverage for eligible employees. This will help to cover nonwork-related injury or sickness, including pregnancy. Employers can choose to cover the entire cost, or withhold up to 0.5% of eligible employees' wages (up to $ 5.34 per week) towards the cost. Learn more on the HI Disability Compensation Division's site.
Benefits of TDI
TDI is intended to pay replacement wages to employees who cannot work, but does not pay for medical care.
Employees Eligible for TDI
Employees become eligible for TDI benefits after:
- working at least 14 weeks of employment in Hawaii for which the employee worked at least 20 hours each week, and
- earning $400 or more in the 52 weeks before claiming a disability.
Duration of employment may be non-consecutive, and with multiple employers.
Paying For TDI
Employers can purchase TDI from an authorized insurance carrier or establish a self-funded plan. Payroll providers such as Zenefits Payroll will withhold TDI taxes from employers if their employer elects to have employees contribute, but will not pay the amounts to the carrier. The funds remain in the company's account, and the employer is responsible for paying these amounts to the carrier.
Zenefits Payroll will withhold, but not pay or file Hawaii state disability insurance (SDI) taxes for employers. Employers are responsible for remitting these amounts directly to their carrier.
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