If you’re not familiar yet with what the General Excise (GE) tax is, here is what it is and who it applies to. In a few words, this privilege tax is imposed on any type of business activity in the State of Hawaii.
Filing and paying a Hawaii GET is not optional if you are self-employed, have rental properties, or if you make sales and get commissions. There are different types of forms available depending on how often you or your company has to pay this tax. Form G49 (annual filing) and G45 (monthly, quarterly or semi-annual payments) are the forms you are most likely to encounter.
GE Tax Filing is rather straightforward but getting professional help is not a luxury and should allow you to make better decisions based on precise facts and data. Don’t overlook that tax, even if you are just starting out. Your personal accountant can prepare and file the form on your behalf, saving you precious time in the process!
On Oahu, the rate is 4.5% for contractors and service providers, but only 4% on the neighboring islands. Manufacturers and wholesalers pay only 0.5% (they need to have a wholesale certificate of course).
If you have real estate, passing along the tax to your tenants might work in some cases. However, you should collect more than the actual amount of the tax. Otherwise, you might be out of pocket for some of the expenses. Our bookkeepers will explain to you the why behind this strategy.
We know that every tax situation is different which is why we will take the necessary time to take a look at your specific business operations and needs. If you’re wondering “Do I have to pay Hawaii GE Tax?” We can tell you that the answer is generally yes. Independent contractors and people with any kind of business income are required to file the General excise tax form.
Not sure how often you have to pay? The rule is pretty simple: businesses that pay more than $4,000 have to pay monthly. Less than this sum means you will have to file the form on a quarterly basis, and less than $2,000 means you will file twice per year.
Expect a reasonable fee and plenty of value delivered directly to you by our team of professional tax experts and accountants. We have created a dedicated service for the GE tax so you don’t have to look very hard to find it. This tax is based on the gross money you received and not on the net income. So, even if you didn’t turn in a profit, you still need to pay the general excise tax.
Don’t wait any longer and call our office now at (808) 200-1040 if you need more information about our GE tax filing service near you. Ask all your questions about the GE tax to our accounting specialists and you’ll receive all the information you need.