RE: Certain Taxpayers With Tax Liabilities Exceeding $100,000
Effective January 1, 1993, the filing date for employers' income tax withholding, public service company taxpayers, and franchise taxpayers whose tax liability for the year exceeds $100,000 has been accelerated. Act 38, Session Laws of Hawaii (SLH) 1992, requires employers with income tax withholding liabilities over $100,000 a year to file and pay the tax on or before the 10th day of the calendar month following the accrual of the taxes. The Department will notify affected employers of their new requirement to file monthly withholding tax returns.
Act 38, SLH 1992, also requires public service companies, banks, and financial institutions with a tax liability exceeding $100,000 for the taxable year to file monthly tax returns and pay the tax due in 12 equal installments. For these public service company taxpayers and franchise taxpayers, the monthly returns and payments are due on or before the 10th day of the first month following the close of the taxable year and the 10th day every month thereafter.
The monthly filing and payment requirements are applicable to both calendar year and fiscal year taxpayers. The criteria for the filing of monthly tax returns and payments will be based on 1992 (and succeeding years) Form HW-3, Form U-6 or Form F-1 tax liability exceeding $100,000. A taxpayer who reaches the $100,000 tax liability level during any calendar or fiscal year, must file as discussed in this Announcement for the next full calendar or fiscal year.
The Department of Taxation, Oahu District Taxpayer Services Branch, will have Form FP-1 available in late December, 1992, for public service company taxpayers and franchise taxpayers filing monthly returns. As for withholding taxes, employers shall file the required monthly returns on the regular Form HW-14.
Please contact the nearest district office if you have any questions.
RICHARD F. KAHLE, JR.
Director of Taxation