Update your operating systems for 2026 to reflect new employment laws and guidelines, including the following:
2026 Hawaii unemployment insurance rate Employers’ contribution rate to the state Unemployment Compensation Trust Fund will follow Contribution Rate Schedule C (see table below).
Taxable Wage Base (per employee)
$64,500
Tax Rate for New Employers
2.40%
Maximum Tax Rate
5.60%
Employment and Training Assessment (E&T) Rate
0.01%
Maximum Weekly Benefit Amount
$868
2026 disability compensation contribution withholding requirements and payment provisions for Temporary Disability Insurance (TDI), Workers’ Compensation (WC) and Prepaid Health Care (PHC) are as follows:
Maximum weekly wage base:
TDI: $1,500.21
WC: $1,859.91
Maximum weekly benefit amount:
TDI: $871.00
WC: $1,240.00
Maximum weekly deduction: $7.50
Mandatory coverage under Prepaid Health Care: Minimum monthly wage $1,387.00
For information on computation, see the DLIR Dec. 10, 2025, notice:
2026 W-4 Published The IRS 2026 Form W-4 (Employee’s Withholding Certificate) is now available to download. Updates have been made to account for new federal income tax deductions available to employees under Public Law 119-21 (also known as the One Big Beautiful Bill Act, or OBBBA), including:
a new checkbox below Step 4 (c ) for an employee to claim exemption from federal income tax withholding instead of writing the word “Exempt”
expanded Step 4(b) deductions worksheet with sections for entering estimates of qualified tips, qualified overtime compensation, and qualified passenger vehicle loan interest
Employers should update HRIS/payroll fields to accommodate the new W-4 information, and communicate changes to employees. Employers can also refer to IRS Publication 15-T (Federal Income Tax Withholding Methods).
Make sure you have the current labor law posters required by state and federal law in your workplace. See the DLIR website for links to downloadable files: https://labor.hawaii.gov/labor-law-poster/
Standard mileage rate for business use: The IRS increased the optional standard mileage rate to 72.5 cents per mile, effective Jan. 1, 2026, an increase of 2.5 cents from 2025. The cents per mile recommended by the IRS is the highest tax-free reimbursement employees using a personal vehicle for business driving can receive from employers. Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. In later years, they can choose to use the standard mileage rate or actual expenses. See the IRS press release or Notice 2026-10.