HB1215

Hawaii HB1215 amends the general excise tax exemption to include certain payments made by professional employer organizations and contractors.

Hawaii HB1215 modifies the general excise tax exemption to include payments made by professional employer organizations registered with the Department of Labor and Industrial Relations. This exemption applies to amounts disbursed for employee wages, salaries, payroll taxes, insurance premiums, and benefits. Additionally, the bill exempts payments made by contractors licensed under chapter 444 for services in counties with populations between 125,000 and 185,000. The changes will apply to taxable years beginning after December 31, 2025.