CONFERENCE COMMITTEE REP. NO. 142

Honolulu, Hawaii

, 2021

RE: S.B. No. 1196

S.D. 2

H.D. 1

C.D. 1

Honorable Ronald D. Kouchi

President of the Senate

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Honorable Scott K. Saiki

Speaker, House of Representatives

Thirty-First State Legislature

Regular Session of 2021

State of Hawaii

Sirs:

Your Committee on Conference on the disagreeing vote of the Senate to the amendments proposed by the House of Representatives in S.B. No. 1196, S.D. 2, H.D. 1, entitled:

"A BILL FOR AN ACT RELATING TO WITHHOLDING TAX,"

having met, and after full and free discussion, has agreed to recommend and does recommend to the respective Houses the final passage of this bill in an amended form.

The purpose of this measure is to:

(1) Amend the due date for employers to file the wage and tax statement from the last day of February to January 31 following the close of the calendar year; and

(2) Impose a penalty on employers that fail to timely furnish and file the wage and tax statement.

Your Committee on Conference finds that under existing state law, there is no penalty if an employer fails to furnish an employee with their wage and tax statement (Form W-2) or fails to file a copy of Form W-2 with the Department of Taxation. This measure encourages further compliance with the requirements of state tax law and aligns state filing deadlines with those established by the Internal Revenue Service.

Your Committee on Conference has amended this measure by:

(1) Specifying penalty amounts for failure to timely furnish and file wage and tax statements of $25 per failure not to exceed $50 per employee; and

(2) Inserting an effective date of January 1, 2022.

As affirmed by the record of votes of the managers of your Committee on Conference that is attached to this report, your Committee on Conference is in accord with the intent and purpose of S.B. No. 1196, S.D. 2, H.D. 1, as amended herein, and recommends that it pass Final Reading in the form attached hereto as S.B. No. 1196, S.D. 2, H.D. 1, C.D. 1.

Respectfully submitted on behalf of the managers:

ON THE PART OF THE HOUSE

ON THE PART OF THE SENATE

____________________________ SEAN QUINLAN Co-Chair	____________________________ KARL RHOADS Chair
____________________________ DANIEL HOLT Co-Chair	____________________________ BRIAN T. TANIGUCHI Co-Chair