Small Business Hawaii | Volume 23 Number 11 | November 1998
New Hires Notice | Environment Conference
The Hawaii Congress on Small Business II, held September 25 at The Ilikai Hotel in Waikiki, drew 150 business owners and advocates who discussed, debated and voted on their top legislative issues for 1999 and beyond. Principal organizers were Bette Tatum, Tim Moore and Jim Proctor. NFIB and Small Business Hawaii were among the sponsors of the event. The State DBED&T was very supportive of the Congress. The most recent Congress grew out of the first statewide event held in November, 1995, as a followup by Hawaii's 16 delegates to the earlier White House Conference on Small Business. It was at the first Hawaii Congress that former New Zealand leader Sir Roger Douglas spoke and was the catalyst to get several small business owners to run for elective office. Among those who ran for the first time in 1996, were State Senators Norman Sakamoto (Democrat) and Sam Slom (Republican). The small business community would like to see the Congress held either annually or every two years on a regular basis. Of the several dozen issues debated actively during the Congress, the group narrowed their focus to a list of top 10 recommendations that will be forwarded to the Governor and State Legislators for action. They are in priority order: 1. PRIVATIZATION NOW! Amend current law giving state and counties maximum latitude to streamline, downsize and privatize and to utilize performance based budgeting to determine the true cost of government services. 2. ECONOMIC DEVELOPMENT & INTERNATIONAL TRADE Eliminate excessive duplication of regulations and functions of state and county agencies. 3. INSURANCE & LABOR Reform Hawaii's tort law to prevent frivolous lawsuits, require loser to pay attorney fees and expenses to protect innocent defendants and put cap on non-economic damages. 4. TAXATION Implement performance-based budgeting to reduce cost of government. 5. TAXATION Replace gross income General Excise Tax (GET) and eliminate pyramiding with tax on retail sales, excluding food and medical care. 6. PRIVATIZATION Extend Act 230 (1998) beyond its 3-year period until the process is fully implemented. Appoint the required Review Committee ASAP and include small business owners recommended by the HCSB. 7. CAPITAL FORMATION The State should join 48 other states in adopting a Small Corporate Offering (SCOR) program as proposed by HB 2478 (1998). Abolish the DCCA "merit review" process. 8. TAXATION Simplify state income tax to a post card return based on a percentage of federal income tax. 9. TAXATION Reduce cost of government. 10. PROCUREMENT Streamline process for tax clearances.
Employers Can Now Obtain Fed Hawaii businesses are now able to obtain their federal employer's identification number (FEIN) "over the counter" at the State Tax Office. New businesses may bring their completed federal application form to the State Tax Office, at the same time they bring in their Basic Business Application (Form BB-1) for Hawaii, and immediately obtain a temporary FEIN. The temporary FEIN is later confirmed as the permanent number by the Internal Revenue Service, usually within three weeks. In the past, new businesses often submitted State applications without the FEIN. The Department followed up with a letter requesting the number and businesses had to respond after they received their FEIN. Now, businesses can get their federal and State identification numbers at the same time with no follow-up needed. According to Director Ray Kamikawa, "our on-going collaboration with the Internal Revenue Service has been a real plus for taxpayers. In this instance, the Internal Revenue Service established new procedures and trained our staff in issuing the federal number; the result is a more streamlined registration process for Hawaii businesses." Federal identification numbers currently are being issued at the Oahu District Tax Office only. However, the Department hopes to extend this service to the neighbor islands sometime in the future.
Notice to Employers Regarding New Hires Beginning October 1, 1998, the Hawaii Child Support Enforcement Agency (CSEA) started operating the state New Hire Reporting Directory which was mandated by the federal Welfare Reform Act and Act 293, approved by the Governor on June 21, 1997. Employers must now send new hire reports directly to CSEA. DO NOT SEND ANY NEW HIRE REPORTS TO THE STATE'S UNEMPLOYMENT INSURANCE DIVISION. CSEA requires that newly hired employees be reported by mailing or faxing a copy of the employee's IRS Tax Withholding Form (Form W-4). Do not use the old Unemployment Insurance "Report of New Hire" Form UC-BP-5A. New hires must be reported to CSEA within 20 days after the date that the employee starts employment. There is a penalty for failure to file a timely or accurate report of new hires. New hire reports can be faxed to (808) 537-3775 or mailed to:
NEW HIRE REPORTING 680 IWILEI ROAD STE. 490 HONOLULU, HI 96817 Additional information regarding new hire reporting options such as magnetic media, use of W-4 equivalent or facsimile forms, and special reporting options for multi-state employers can be obtained by contacting CSEA at (808) 587-3738. Call the Child Support Enforcement Agency immediately if you have any other questions relating to your legal obligation to report new hires.
4th ANNUAL PARTNERSHIP FOR The fourth annual Partnership for the Environment conference and awards luncheon will demonstrate that recycling works at work. A full day of workshops, tours, product show and recognition will highlight Hawaii businesses that have instituted successful recycling programs. Titled "Recycling at Work - Make It Your Business," the event takes place Thursday, November 19, 1998, from 7 a.m. to 6 p.m. at Ihilani Resort and Spa. The awards luncheon will be held from noon to 1:30 p.m. in the Ocean Ballroom. "Hawaii's business community is the driving force behind successful recycling in the Islands," said Mayor Jeremy Harris, City and County of Honolulu. "In 1997, Oahu recycled more than 500,000 tons of materials, most of which was generated and processed by commercial businesses. And, with the support of business leaders in the Partnership for the Environment, the City was able to develop and implement successful business recycling laws." The partnerships peer consultant will showcase their efforts at this year's conference as workshop speakers, tour guides and recycled products exhibitors. Technical tours will provide behind-the-scenes looks into the operations of H-POWER, Hawaii's waste-to-energy project; Hawaii Metal Recycling Company; Hawaiian Earth Products; and the recycling and environmental efforts of Ihilani Resort. The resort is a uniquely appropriate venue for this event with its proximity to some of the Islands' largest recycling and waste management sites. Several educational workshops will be offered on a variety of recycling subjects, including: "How to Set Up Cost-Effective Recycling Programs" The Partnership for the Environment is a coalition of businesses, coordinated by the City and County of Honolulu, working to support waste reduction, recycling and the purchase of recycled products. Everyone in Hawaii, who is involved in trash and recycling, is playing a role in this year's conference. Cost for the conference and awards luncheon is $35 per person. Price is for the full conference, and includes workshops, tours, breakfast, awards luncheon and afternoon refreshments. Table reservations available. For more information call the City Recycling Office at (808) 527-5335. For conference reservations, call the Hawaii Food Industry Association at (808) 533-1292.
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