The amendment to HAR Section 18-235-61-03(b), relating to the exemption from the withholding of income taxes on the wages received by a qualifying minister or member of a religious order, has been adopted by the Department of Taxation (department) and signed by Governor Benjamin J. Cayetano. The amendment to the rule takes effect on June 24, 1999.
The amendment conforms the department's rule to the exemption from the withholding of federal income taxes under the Internal Revenue Code and related regulations. Thus, an employer would not have to withhold Hawaii income taxes on wages paid to qualifying employees on June 24, 1999, and thereafter.
A copy of the rule and other tax information
may be downloaded from the Department's website at: http://www.state.hi.us/tax/tax.html.
Alternatively, to request a copy of the amended rule, please mail a request
to the Department of Taxation, Attention: Rules Office, P.O. Box 259, Honolulu,
Hawaii, 96809-0259. Please include your name and address, identify the
rule ("Ministers' withholding exemption rule"), and provide a check for
$5.00 (50 cents per copied page times 10 pages) made out to the "Director
of Finance." The law requires that agencies, including the Department,
charge for copies of the rules.
/s/
RAY K. KAMIKAWA
Director of Taxation
HAR Section Explained: HAR Section 18-235-61-03(b)