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                              STATE OF HAWAII — DEPARTMENT OF TAXATION 
FORM HW-7            EXEMPTION FROM WITHHOLDING ON NONRESIDENT 
(REV. 2023)                                                                                                                                                       Year 
                                              EMPLOYEE’S WAGES
                                              (To be filed by the employer.) 
                              (Attach Form HW-6 to this form.)                                            2024
                     (NOTE: References to “spouse” are also references to “civil union partner.”)
Employer’s Name, including DBA name (if applicable)

Employer’s Address (Street, City, State, and Postal/ZIP Code)

Employer’s Hawaii Tax I.D. No.
WH - __ __ __ - __ __ __ - __ __ __ __ - __ __

1. Employee’s name

2. Are your employee’s services being performed in Hawaii? .....................................................................Yes   No 
   If you checked “No,” where are the services being performed? 

3. State the approximate number of days, in the aggregate, you expect your employee to perform
   services in Hawaii during calendar year 2024.

4. Is your employee paid for the employee’s services in Hawaii from an office outside Hawaii? .................Yes   No 

5. Is your employee’s regular place of employment (where your employee regularly performs
   services for you) outside Hawaii? ............................................................................................................Yes   No 

6. Are you a contractor as defined in section 237-6(1), Hawaii Revised Statutes (HRS)? (Section
   237-6(1), HRS, defines a contractor as every person engaging in the business of contracting to
   erect, construct, repair, or improve buildings or structures, of any kind or description, including
   any portion thereof, or to make any installation therein, or to make, construct, repair, or improve
   any highway, road, street, sidewalk, ditch, excavation, fill, bridge, shaft, well, culvert, sewer,
   water system, drainage system, dredging or harbor improvement project, electric or steam rail,
   lighting or power system, transmission line, tower, dock, wharf, or other improvements.) ......................Yes   No 
   If you checked “Yes,” is your employee performing work for a construction project located 
   in Hawaii? ................................................................................................................................................Yes   No 

7. Is your employee claiming exemption from withholding under the Military Spouses Residency Relief
   Act which mandates that income received by a servicemember’s nonresident civilian spouse for
   services performed in Hawaii as an employee is not subject to Hawaii’s income tax? ............................Yes   No 

   I declare under the penalties of section 231-36, HRS, that I have answered all the above questions and that my answers are true 
   and correct.

   Employer’s Signature:                                                     Title:                   Date:

                                                   FOR TAX OFFICE USE ONLY
Withholding of income tax is:
  Required because the employee is a Hawaii resident.
  Required because the employee performs services in Hawaii an aggregate of more than 60 days during the 
   calendar year.
  Required because the employee is paid for services performed in Hawaii from an office in Hawaii.
  Required because the employee’s regular place of employment for services for the employer is in Hawaii.
  Required because you are a contractor as defined in section 237-6(1), HRS, and your employee is performing 
   work for a construction project located in Hawaii.

Income Tax Assessor/Assistant Assessor:                                                               Date:

                                                                                                      FORM HW-7 (REV. 2023)
HW7_I 2023A 01 VID01                               ID NO 01

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INSTRUCTIONS
FORM HW-7
(REV. 2023) PAGE 2
General Information • The servicemember (as defined in 10 (3) Enter your Hawaii Tax I.D. number.
U.S.C. section 101(a)(5)) is present in Ha- Line 1. Enter your employee’s name.
Purpose of Form waii solely in compliance with military or
If your employee is a nonresident employee and naval orders and Line 2. Check “Yes” if your employee’s services are
performed in Hawaii. Also check “Yes” if your em-
withholding is not required on your employee’s • The spouse is in Hawaii solely to be with ployee’s services are performed on a cruise ship or
wages under items (a) or (b) of “When Withholding the servicemember, research vessel. Interisland voyages are considered
is Not Required” (see below), you must file Form • The spouse and servicemember are domi- to be completely within Hawaii and, therefore, all
HW-7, along with the Form HW-6 completed by your ciled in the same state and that state is not wages earned are subject to withholding.
employee, with the Department of Taxation (Depart- Hawaii. Sec. 302 of the Veterans Benefits Line 3. Enter the total number of days you expect
ment) in order to qualify for the exemption from with- and Transitions Act of 2018 - Residence your employee to perform services within Hawaii
holding on your employee’s wages. of spouses for servicemembers amends during 2024.
Note: If your employee is a nonresident employee SCRA to allow the spouse of a service-
and withholding is not required on your employee’s member to elect to use the same state of Lines 4 to 7. Answer all the questions.
wages under item (c) of “When Withholding is Not residence as the servicemember for state Signature & Date. Sign and date your form. It is not
Required” (see below), you do not have to file Form or local tax purposes. considered a valid form unless you sign it.
HW-7 with the Department. Withholding is not re- For more information see Tax Information Release Filing the Form. If you are required to file Form
quired on your employee’s wages. Keep your em- (TIR) No. 2010-01, “Military Spouses Residency HW-7 (see “Purpose of Form” above), send Form
ployee’s Form HW-6 for your records. Relief Act” and Tax Announcement 2019-1 “Military HW-7, along with the original Form HW-6, Employ-
When Withholding is Required Spouses Relief Act.” ee’s Statement to Employer Concerning Nonresi-
Withholding is required on: (c) Wages for services performed outside Hawaii dence in the State of Hawaii, (keep a copy of your
if the employee establishes that the employee employee’s Form HW-6 for your records) to:
(a) Wages for services performed inHawaii, and is a nonresident.
Hawaii Department of Taxation
(b) Wages for services performed outside Hawaii The following examples should help to illustrate P.O. Box 1425
if: when withholding is or is not required: Honolulu, Hawaii 96806-1425
• The services are performed by an employ- Employee, a resident of Oregon, is engaged to
ee whose regular place of employment for teach in Hawaii for one summer. Though Employee Telephone: 808-587-4242
services for the employer is in Hawaii, or is a nonresident, withholding is required on Employ- Toll-Free: 1-800-222-3229
• The wages are paid out of an office in ee’s wages.
Hawaii, or the field office of an employer Employee, a resident of Hawaii, is sent to the main- Note: If your employee is a nonresident employee
whose head office is in Hawaii. land for special training. Withholding is required on and withholding is not required on your employee’s
When Withholding is Not Required Employee’s entire wages. wages under item (c) of “When Withholding is Not
(Note: Employers and employees who are exempt Employee, a resident of Hawaii, is a promotional Required,” you do not have to file Form HW-7 with
from the withholding provisions are not necessarily sales representative for a mainland manufacturer. the Department. Withholding is not required on your
exempt from the Hawaii Income Tax Law.) Employee has a home in Honolulu and covers all of employee’s wages. Keep your employee’s Form
the islands. From time to time, Employee goes to the HW-6 for your records.
Withholding is not required on: mainland to attend sales conferences. Withholding Effective Date. You shall stop withholding taxes
(a) Wages for services performed inHawaii, if all is required on Employee’s entire wages. from your nonresident employee’s wages on or
of the following conditions are met: Employee, a resident of California, is brought to the after the first payroll period or the first payment of
• The employee establishes that the em- State by a firm having a contract to conduct a survey wages after Form HW-7 and Form HW-6 are filed
ployee is a nonresident, for a local company. The work commences in Febru- with the Department. If you are not required to file
• The employee is performing services in ary and is not completed until June. During this time, Form HW-7 with the Department, you shall stop
the State for an aggregate of not more Employee makes a trip back to the mainland for con- withholding taxes from your nonresident employee’s
than 60 days during the calendar year, sultations. Withholding is required on the wages for wages on or after the first payroll period or the first
the period of service in the State, but is not required payment of wages after your employee gives you
• The employee is paid for the employee’s on the wages for the period Employee is outside the Form HW-6.
services in the State from an office outside State, if Employee is a nonresident of the State. Investigation of Nonresidency Status. You shall
the State, withhold taxes from the wages of your nonresident
Employee, a resident of Washington, is hired on the
• The employee’s regular place of employ- mainland by a local company having a construc- employee if you are notified by the Department that
ment (where the employee regularly per- tion contract for work on a Pacific island not part of your employee’s residency status is being investi-
forms services for the employer) is outside the State. All of Employee’s services are performed gated. Notice of the investigation and the Depart-
the State, and on that island. Withholding is not required on Em- ment’s determination will be sent to both you and
• The employer does not reasonably expect ployee’s wages if Employee is a nonresident of the your employee. A notice of the Department’s deter-
the employee to perform services in the State. On the other hand, withholding is required on mination shall be effective for the first payment of
State an aggregate of more than 60 days the wages of employees performing like services for wages made on or after the first day of the calendar
during the calendar year. this company who are Hawaii residents or do not month which is at least 30 days after notice from the
However, a nonresident employee performing ser- make the required showing of nonresidence. Department is received. At your option, the Depart-
ment’s determination may go into effect at an earlier
vices for a contractor as defined in section 237-6(1), Employee, a resident of Nevada, is hired on the payroll period.
HRS, will not qualify for a withholding exemption mainland by a construction industry contractor
when the contractor is performing work for a con- to work in Hawaii on a federal contract. All of Em- Change of Status. If at any time your employee’s
struction project located in Hawaii. Additionally, if ployee’s services are performed in Hawaii during a residency status changes, your employee must no-
the Director of Taxation finds that the withholding period that is less than 60 days in the aggregate for tify you of the change in status within 10 days. You
requirement is unduly onerous or impracticable of the calendar year. Withholding is required on any then must notify the Department of the change in
enforcement, the Director may grant permission employee of a construction industry contractor en- your employee’s residency status. The change in
to an employer for exception from the withholding gaged in contracting work in Hawaii regardless of status shall go into effect for the first payment of
requirement. the employee’s state of residency or how long the wages made on or after the first day of the calendar
(b) Wages, salaries, tips, commissions, and other employee is in Hawaii. month which is at least 30 days after the Department
is notified. At your option, the change in residency
compensation received on or after January 1, status may go into effect at an earlier payroll period
2009, by a servicemember’s civilian spouse for Line-by-line Instructions if your employee is notified of the change.
services performed by the servicemember’s At the top of the form: The De-
Returning Form HW-7 to the Employer.
spouse in Hawaii as an employee, if all of the (1) Enter your name, including any business or partment will only return the Form HW-7 to the em-
following conditions are met: trade name (if applicable). ployer if withholding is required.
(2) Enter your current mailing address.

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