The State Tax Department has recently released Booklet A, Employer's Tax Guide (Revised 2001).

Booklet A, Employer's Tax Guide, has been revised to reflect the new wage withholding rates that will be in effect from January 1, 2002.  The revised Booklet A was mailed to all registered employers in December.  Employers should use this booklet beginning in January 2002.  Employees may need to complete a new Form HW-4 to adjust their withholding exemptions.

The new rates are an result of Act 157, Session Laws of Hawaii 1998, which provided a $759 million income tax cut to be spread over four years:  $159 million in both 1999 and 2000, $192 million in 2001, and $242 million in 2002.  Continuing what was started in 1999, the lower rates for the year 2002 will further reduce the amount of State income taxes required to be withheld on wages paid to employees, thus, further increasing employees' take-home pay.

Copies of Booklet A and tax forms may be downloaded from the Department's website at: www.state.h.us/tax.  Copies of Booklet A and tax forms may also be obtained from any district tax office or by calling the Department's 24-hour Forms By Fax/Mail line at (808) 587-7572, or toll-free at 1-800-222-7572.