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How does the HI SDI calculation work?
Employers in Hawaii are required by law to provide state disability insurance (SDI) coverage for eligible employees. Employers can choose to cover the entire cost or to withhold an allowed portion of employees' wages towards the cost.
If employers choose to withhold a portion of the HI SDI from their employees' wages, they are allowed to withhold 0.50% of wages paid, but not to exceed $5.60 per week (for 2020).
Payroll providers can withhold these SDI amounts from employees' wages, but will not collect those funds from the company, nor pay those funds to the carrier. It is the company's responsibility to pay their total SDI premiums to the carrier, including any amounts withheld from their employees.