Hawaii 1099 State Filing Requirements — A Complete Guide
Understand the 1099 filing requirements for the state of Hawaii
Taxes are an inevitable part of every business, and for those engaging non-employees, the annual filing of 1099 returns is a mandatory task. This includes reporting taxes to states, and each state has its unique set of requirements. This blog will delve into the specifics of Hawaii’s 1099 state filing requirements.
1099 State Filing Requirements in Hawaii
When it comes to filing taxes in Hawaii, taxpayers must follow the guidelines provided by the Hawaii Department of Taxation. Payers must file 1099 forms with the state of Hawaii, which include 1099-NEC, 1099-MISC, 1099-K, 1099-INT, 1099-R, 1099-DIV, 1099-G, 1099-OID, and W-2G under the following conditions:
- If a person is engaged in a trade or business in Hawaii.
- Having a place of business or a fiscal or paying office in Hawaii and making payments in the course of such trade or
- Business to another business or individual entity must make a separate information return on Form 1099.
The determination of which forms to file is based on particular conditions:
Reporting Threshold:
There is no specified threshold for submitting Form 1099 in Hawaii. Instead, the federal guidelines are in lineup with the reporting obligations. Before filing, the payer should evaluate the appropriate federal threshold for each Form 1099. The threshold values for the following 1099 Forms are stated below:
- Form 1099-NEC -$600
- Form 1099-MISC -$600
- Form 1099-K -$20,000
- Form 1099-R-$10
- Form 1099-OID-$10
- Form 1099-G- No Threshold Value
- Form 1099-INT-$10 for the amount reported on Boxes 1, 3, or 8 (or at least $600 of interest paid for trade or business)
Form 1099-DIV:
- Paid $10 or more in money or other property for dividends and other distributions
- Paid $600 or more in money or other property as part of a liquidation.
Form W-2G:
- $1200 or more from Bingo or slot machines
- $1500 or more from a keno game
- $5000 or more from a poker tournament
- Any other winnings of $600 or more or 300 times the amount wagered
Withholding Information:
Payers are required to file Form 1099 with the Federal government only, regardless of state tax withholding. The IRS will automatically forward federal 1099 forms to the state under the CF/SF program.
What is the CF/SF Program?
The CF/SF program, or Combined Federal and State Filing program, was introduced to alleviate the burden of state filing. It accomplishes this by consolidating the 1099 filing process with the IRS and the respective state. The program operates by leveraging the information provided in federal returns, with the IRS serving as an intermediary that forwards the returns to participating states. To delve deeper into the CF/SF program, click here to learn more.
Additional Filing Requirements:
The State of Hawaii has specific additional requirements when filing 1099 forms.
- If payers file 1099s electronically, they are not required to report any additional forms.
- The Hawaiian state mandates that Form N-196 (Annual Summary and Transmittal of Hawaii Information Returns) should be submitted along with the 1099 Form when filing on paper.
Form N-196 (Annual Summary and Transmittal of Hawaii Information Returns)
Hawaii 1099 paper filers must complete and submit Form N-196 (Annual Summary and Transmittal of Hawaii Information Returns) along with the 1099 Forms being reported to the Hawaii Department of Taxation. Form N-196 is used to report data on the types of 1099 forms communicated, the number of 1099 forms reported, the total amounts from specific boxes of the reported forms, and the filer’s information.
Form W-2 (Wages and Tax Statement): Payers who hire full-time employees must file Form W2 with the state of Hawaii. For more detailed information on W-2 state filing requirements, learn more.
Important Deadlines and Penalties for Form 1099 Filing in Hawaii
Deadline for Hawaii State filing taxes
The deadline for filing Form 1099 with the Hawaii taxation agency for each year is as follows:
- Form 1099- February 28.
- Form N-196- February 28.
If this date falls on a weekend or federal holiday, the next business day automatically becomes the filing deadline. Businesses and payers must follow this timeframe to ensure compliance with the state’s regulations.
Penalties for 1099 Form:
The penalty for not filing or filing 1099 lately with the state of Hawaii is calculated at 5% per month, or part of a month, on the unpaid tax up to a maximum of 25%. To prevent these financial consequences, timely submission of Form 1099 is essential.
How to File Form 1099 with Hawaii?
Payers have two options for filing their 1099 Forms with the state of Hawaii: either e-filing or paper filing.
Use services like TaxBandits for a smooth 1099 Form tax filing experience. They provide several features, such as filing federally and state-wide, distributing recipient copies via mail or online, filing in bulk for multiple returns, matching TINs for accurate 1099 filing, and more.
Following deadlines and paying keen attention to detail are essential while navigating Hawaii’s 1099 state reporting requirements. Businesses may ensure compliance and efficient tax procedures with the appropriate strategy.
