January 30, 2025 • News

HR Checklist for 2025 HR Operations

Update your operating systems for 2025 to reflect new employment laws and guidelines, including the following:

• Standard mileage rate for business use: The IRS increased the optional standard mileage rate to 70 cents per mile, effective Jan. 1, 2025, an increase of 3 cents from 2024. The cents per mile recommended by the IRS is the highest tax-free reimbursement employees using a personal vehicle for business driving can receive from employers. Taxpayers using the standard mileage rate for a vehicle they own and use for business must choose to use the rate in the first year the automobile is available for business use. In later years, they can choose to use the standard mileage rate or actual expenses. See IRS Notice 2025-5.  
  
  
• 2025 Hawaii unemployment insurance rate  Employers’ contribution rate to the state Unemployment Compensation Trust Fund will follow Contribution Rate Schedule C (see table below). 

Taxable Wage Base (per employee)	$61,958
Tax Rate for New Employers	2.40%
Maximum Tax Rate	5.60%
Employment and Training Assessment (E&T) Rate	0.01%
Maximum Weekly Benefit Amount	$835

• 2025 disability compensation contribution withholding requirements and payment provisions for Temporary Disability Insurance (TDI), Workers’ Compensation (WC) and Prepaid Health Care (PHC) are as follows (for information on computation, see the DLIR Dec. 2^nd notice: https://labor.hawaii.gov/dcd/files/2024/12/2025-Max-Weekly-Wage-Base.pdf):
  • Maximum weekly wage base:
    • TDI: $1,441.72
    • WC: $1,787.91
  • Maximum weekly benefit amount:
    • TDI: $837.00
    • WC: $1,192.00
  • Maximum weekly deduction: $7.21
  • Mandatory coverage under Prepaid Health Care: Minimum monthly wage $1,214.00
    
• 2025 W-4 Published  The IRS 2025 Form W-4 (Employee’s Withholding Certificate) is now available to download. Updates include: expanded guidance on when employees should use the IRS Tax Withholding Estimator tool, including such situations as: filling out the form after the start of the year; expecting to work only part of the year; experiencing life changes that affect withholding (for example, marital status, number of jobs, number of dependents, deductions or credits); receiving dividends, capital gains, social security, bonuses or business income; or are subject to Additional Medicare Tax or Net Investment Income Tax. Employers can also refer to IRS Publication 15-T (Federal Income Tax Withholding Methods). 

• Make sure you have the current labor law posters required by state and federal law in your workplace. See the DLIR website for links to downloadable files: https://labor.hawaii.gov/labor-law-poster/