Your GET Resource Guide?
What Is GET (General Excise Tax)?
The GET is a privilege tax imposed on business activity in the State of Hawaii. The tax is imposed on the gross income received by the person engaging in the business activity. Your “gross income” is the total of all your business income before you deduct your business expenses. Your gross income includes any cost passed on to your customers such as the GET.
An introduction to General Excise Tax can be found HERE.
What Does This Mean For Me?
In order to continue to maintain your business partnership with your marketing client beyond December 31, 2020, you will need to file for a General Excise Tax License through the State of Hawaii Business Express portal, which can be found HERE. As well as register your business with an EIN, or Employment Identification Number. Click HERE to register your business with an EIN and follow the instructions.DDI will be applying a credit to your DDI Admin Fee through our Contractor Entrepreneurial Program for obtaining your General Excise Tax License and save you money! We will also be holding the required amount to file for your General Excise Tax in an escrow account that will be distributed to you on a quarterly basis in order to help facilitate your General Excise Tax filing!
Once you have registered for both your GET License as well as your EIN, you must send the information to firstname.lastname@example.org no later than December 31, 2020 in order for us to attach it to your driver profile.
How Do I File?
Filing for your General Excise Tax License is a simple process, and DDI is here to help! Please follow the instructions we have put together for you HERE.
The first step gives instructions on how to file for your Trade Name as a Sole Proprietor.
Next, we will guide you through completing, and filing, your BB-1 which will give you your General Excise Tax License and number to file your taxes with.
Please click on the link above to visit the IRS site and file for your EIN.
GET: How Often To File?
All independent contractors enrolled in DDI’s program will be receiving their escrowed funds in a quarterly settlement in order to file their G-45 with the State of Hawaii. The G-49 is your combined annual General Excise Tax filing which you will submit along with your last quarterly G-45 filing for the year.
The filing periods and due dates are as follows:
Quarterly Filing Periods: January – March (G45), April – June (G45), July – September (G45), October – December (G45), January – December (G49)
Quarterly Filing Due Dates: 20th of April (G45), 20th of July (G45), 20th of October (G45), 20th of January (G45), and the 20th of April (G49)
Tax Rates For Independent Contractors
When filling out the G45, gross income received on your settlement for services rendered is to be taxed at 0.5% under line 4: Wholesale Services.
Any tips received for services rendered received from the customer are to be taxed at the 4% retail rate under line 9: Services Including Professional.
For any further questions or information you may have on how to file your G-45 or G-49, please click HERE or contact the Hawaii Department of Taxation.