Hawaii Household Employer Checklist
We’ve got you covered on the payroll end. Please read carefully the following resources and information to help keep you in compliance with nanny and household employer requirements in Hawaii.
Step 1: Obtain workers' compensation insurance coverage
If you pay your household employee $225 or more in a quarter, you are required to maintain workers’ compensation insurance coverage for on-the-job injuries or illness. This insurance can typically be provided under your current homeowner’s or renter’s insurance policy. Please contact your current insurance provider to verify if you can add this coverage to your existing policy.
Resource: Hawaii Dept. of Labor and Industrial Relations
Step 2: Obtain temporary disability insurance coverage
If you pay your household employee $225 or more in a quarter, you are required to get temporary disability insurance coverage for off-the-job injuries or illness. This insurance is purchased through an authorized insurance carrier.
Resources:
About Hawaii Temporary Disability Insurance
FAQs Hawaii Temporary Disability Insurance
Step 3: Health insurance for your nanny or household employee
As per the guidelines outlined by the Hawaii Department of Labor and Industrial Relations, every employer, regardless of size, is mandated to offer Prepaid Health Care Act coverage to all eligible employees who work a minimum of 20 hours per week. This requirement applies to both full-time and part-time employees, encompassing those in permanent as well as temporary positions. The employer is required to establish employer-provided health insurance and cover a minimum of 50% of the premium cost. The employee's contribution should not surpass 50% of the premium cost and must not exceed 1.5% of the employee's gross income. Employees have the option to decline coverage, but only if they already have alternative health insurance. For more information, refer to the resources below from the Hawaii Department of Labor and Industrial Relations website.
Resources:
FAQs about Prepaid Health Care
Step 4: Have your employee complete the I-9 form
Federal law requires that all employers request this form to be completed by the prospective employee. Don’t submit it to anyone, just keep it with your employer records in case of an audit.
I-9 form: https://www.uscis.gov/i-9
Step 5: Have your employee complete a W-4 form
W-4 form: https://www.irs.gov/pub/irs-pdf/fw4.pdf
To be sure your employee doesn’t get an unexpected tax bill, or have too much withheld, have them complete a W-4 form when they are hired, or anytime they experience a change in their withholding requirements (marriage, birth of child, additional income, etc.). You can update your employee’s profile in the Nest Payroll app at anytime during the year.
Step 6: Provide a written wage notice
In Hawaii, household employers must furnish their employees with a written wage notice upon hiring. This notice should encompass essential details such as the employee's hourly rate of pay, the frequency of paydays (weekly, bi-weekly, etc.), the employer's address, and explicit information regarding vacation and sick leave policies.
Step 7: Provide these labor law posters to your employee
Step 8: Have an agreement (optional but suggested)
Having an agreement reduces awkwardness and misunderstandings, especially as things come up you just didn’t anticipate. If you don’t have an agreement with your employee, you can download this one and modify for your situation. This one is for a nanny, but you can easily change out the role of the employee, such as for a housekeeper or caregiver, making it work for you.
Additionally, Hand In Hand, a non-profit we love that supports domestic employers + employees, is a great resource for tackling all sorts of challenges that come with household employment, creating a more dignified and respectful workplace for all. Take advantage of their excellent and free sample contracts and guide books.
Step 9: Background Checks
Here are two options for conducting background checks:
Step 10: Know your labor laws
PAID SICK TIME: NOT REQUIRED
Sick leave isn’t required, but if you’d like to offer it, a typical minimum amount is three days (24 hours) per year. You can set this up in your employee’s profile. When taken, simply enter the used hours in the Nest Payroll app when creating a paycheck.
VACATION TIME or PAID TIME OFF: NOT REQUIRED
Paid vacation time is not required, but it could be an important benefit to offer. Vacation/PTO hours can be set up and then you simply enter taken hours in the Nest Payroll app when creating a pay stub.
MINIMUM WAGE: REQUIRED BY LAW
All household employees are classified as hourly (non-exempt) and are subject to minimum wage protections. To check if your city has a higher minimum wage requirement than the state, click on the following:
The Economic Policy Institute - Minimum Wage Tracker
When you add an employee to your team in the Nest Payroll app, the minimum wage for your state should pop up.
OVERTIME: REQUIRED BY LAW
Overtime of 1.5x the hourly rate for any hours worked over 40 in a week, including live-in employees.
Resources
Hawaii Domestic Workers Have Rights
The information provided on this page is general in nature. This is not to be taken as tax, legal, benefits, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult an attorney or financial advisor for your specific situation.