Key Takeaways

  1. Hawaii’s economy is thriving, with key industries like banking, insurance, and real estate contributing significantly alongside the ever-growing tourism sector.
  2. An Employer of Record (EOR) helps businesses expand into Hawaii without setting up a legal entity, handling payroll, taxes, and compliance with local labor laws.
  3. Unlike a PEO, which supports companies already operating in Hawaii, an EOR is ideal for businesses entering the state, ensuring smooth hiring and legal adherence.
  4. Top EOR providers like Remote People, Remote, Deel, and Papaya Global offer payroll management, tax compliance, and HR support, each with unique pricing and features.

Hawaii’s economy is growing steadily, reaching about $86.89 billion in 2023. A big part of this comes from businesses like banking, insurance, and real estate, which together added around $19.09 billion to the economy. These industries help create jobs and keep money moving through the islands, making them an important part of Hawaii’s success.

Tourism is also a huge part of Hawaii’s economy. In June 2023 alone, visitors spent about $2 billion, which was 9.2% more than the year before. People come from all over the world to see the islands’ beautiful beaches, rich culture, and unique attractions. Tourism supports many local businesses and provides jobs for thousands of residents. As the world changes, Hawaii continues to find new ways to keep its economy strong and growing.

What Is a Hawaii Employer of Record?

​A Hawaii EOR firm serves as a strategic partner for businesses looking to expand into the state without establishing a legal entity. By assuming critical employment responsibilities such as payroll processing, tax withholding, and adherence to Hawaii’s labor laws, EORs enable companies to focus on their core operations while mitigating administrative burdens. 

What Is the Difference Between a Hawaii Employer of Record and a Hawaii PEO?

A Hawaii EOR helps businesses hire local employees without the hassle of setting up an office on the islands. The EOR takes care of payroll, taxes, and benefits while ensuring the company follows Hawaii’s strict labor laws, like the Prepaid Health Care Act, which requires most employers to provide health insurance. This setup is ideal for businesses entering Hawaii’s booming tourism or hospitality industries. For example, a hotel chain based on the mainland can expand to Hawaii without flouting local employment laws, letting the EOR handle hiring and compliance.

For companies that already have a presence in Hawaii, a Professional Employer Organization (PEO) offers a different solution. The business remains the official employer, but the PEO manages HR tasks like payroll, benefits, and workers’ compensation. This is especially helpful for small businesses that want to attract top talent by offering strong benefits while staying compliant with Hawaii’s labor rules. For instance, a family-owned restaurant may struggle with the paperwork involved in workers’ compensation and taxes. By partnering with a PEO, they can focus on growing their business while ensuring their employees are properly taken care of.

Start hiring with a Hawaii EOR

Let us handle the complexities of hiring, compliance, and payroll in Hawaii while you focus on growing your team.

  • Hire employees in Hawaii with a Hawaii EOR
  • No local entity is needed
  • Pricing starts at USD 199 per employee
  • Remote People can also help you find the best talent in Hawaii
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Best 5 Employers of Record in Hawaii

Discover the top five Employer of Record providers in Hawaii, offering reliable support to help your business grow and stay compliant:

1

Remote People

Remote People helps businesses hire and manage full-time international employees through its Employer of Record model. The service removes the need for entity setup while maintaining compliance with local employment laws.
Remote People homepage new

Core Features

  • Legal employer services for international hiring
  • Locally compliant contracts and labor law alignment
  • Payroll processing with statutory deductions
  • Benefits management based on local standards

Pricing Model

Remote People offers EOR services starting at approximately $199 per full-time employee per month, depending on country-specific obligations.

Pros and Cons

  • Pros

Strong Local Compliance

Employment contracts, payroll, and benefits are aligned with local labor laws rather than generic global templates.

Broad Regional Coverage

The platform supports hiring across Europe, Asia Pacific, the Americas, and the Middle East.

Cost-Effective EOR Pricing

At a lower entry price than many global competitors, Remote People is accessible for startups and growing companies.

  • Cons

Limited Public Documentation

Some service details require direct consultation rather than being fully outlined online.

Employee-Centric Model

The platform is best suited for full-time employment rather than contractor-heavy hiring strategies.

Verdict

Remote People earns its top position by combining competitive pricing with a compliance-first approach to global hiring. For businesses that value legal clarity, predictable costs, and dependable EOR support, it stands out as a practical and well-balanced solution.

2

Remote

Remote provides an Employer of Record (EOR) service that simplifies employee hiring for businesses.

Remote homepage new

Core Features

Remote manages employment tasks, including payroll and compliance. It offers role-specific contracts, intellectual property protection, and handles payroll in local currencies. The platform also enhances onboarding, contractor management, and employee relocations, with additional services like tax advice and equity management.

Pricing Model

Remote charges $199 per full-time employee per month.

Pros and Cons

  • Pros

Supports Global Teams

Remote’s platform enables businesses to manage employees across multiple countries.

User-Friendly Platform

Easy access to key updates, such as employee leave and holiday schedules.

Transparent Pricing

Flat pricing with no hidden fees, making budgeting more predictable.

Inclusive Hiring

Remote offers free hiring services for refugee talent, enhancing workforce diversity.

Reliable Customer Support

Prompt support through chat and email responses.

  • Cons

Limited Payment Options for Contractors

Payments to contractors are limited to Wise, Payoneer, or wire transfers.

Slower Onboarding

Onboarding for full-time employees can take 1-2 weeks, with possible delays due to local requirements or time zone differences.

No Hourly Payment Support

The payroll system supports only salaried employees.

Basic Reporting Tools

Reporting capabilities are limited, as users must access data sets separately.

Verdict

Remote offers a reliable EOR solution for payroll, compliance, and HR management, with features like inclusive hiring and transparent pricing. However, the limited contractor payment options and slower onboarding may be challenging for some businesses.

3

Deel

Deel is an EOR platform designed for managing employees, contractors, and compliance in over 150 countries.

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Core Features

Deel’s EOR solution helps businesses manage both employees and contractors on a single platform. Small businesses can access US PEO plans with payroll tools, HR analytics, and employee directories.

Deel also ensures compliance with features like Deel Shield for worker classification and SOC 2-certified data security. Additional offerings include a mobile app, IT tools, white-label options, and a reseller program for customized HR management.

Pricing Model

The EOR plan costs $599 per full-time employee per month.

Pros and Cons

  • Pros

Wide Integration

Deel integrates well with accounting and HR software such as Xero, QuickBooks, and BambooHR.

Flexible Payment Options

Deel supports various payment methods, including cryptocurrencies, and offers the Deel Card for added flexibility.

AI-Powered Support

Deel IQ, an AI-driven chatbot, helps businesses with HR-related queries and simplifies cost structures in over 150 countries.

Comprehensive HR Solutions

Deel offers a complete HR package, including international payroll and US PEO coverage.

  • Cons

Reputation Issues

Deel has faced scrutiny for misclassifying contractors as employees to avoid taxes and has been unlicensed in certain states.

 

High Costs

At $599 per employee per month, Deel’s pricing may be high for smaller businesses or startups with limited budgets.

Verdict

Deel is a solid choice for businesses seeking a flexible payroll system, advanced HR tools, and AI-driven support. Its pricing and compliance issues may be drawbacks, but it provides an effective all-in-one HR solution.

4

Papaya Global

Papaya Global is an EOR company that helps businesses manage employment in Hawaii.

Papaya Global homepage

Core Features

Papaya Global offers payroll management, tax compliance, and benefits administration. It includes analytics tools for tracking HR metrics, such as employee performance and payroll trends. Employees can view their payroll details through a self-service portal.

Pricing Model

Papaya Global’s EOR service starts at $599 per month for full-time employees.

Pros and Cons

  • Pros

Global Expertise

Papaya Global has extensive knowledge of labor laws in over 160 countries, making it a trusted choice for global teams.

Data Insights

The platform offers powerful analytics for tracking HR metrics, performance, payroll trends, and workforce distribution.

Award-Winning

Papaya Global has received multiple awards for its innovative HR technology and fintech solutions.

Automation

The platform automates payroll, tax filings, and compliance checks, reducing errors and saving time.

  • Cons

High Costs

Pricing can be too high for smaller businesses or startups with limited budgets.

Unexpected Fees

Some users report hidden fees when transitioning from other platforms or adjusting services.

Long-Term Contracts

A 12-month notice period is often required, which may lock businesses into long-term commitments.

Verdict

Papaya Global is an excellent option for companies seeking advanced HR, payroll, and compliance tools. Its pricing and contract terms may be challenging for smaller businesses, but its expertise and automation features make it a solid choice for global teams.

5

Globalization Partners

Founded in 2012, Globalization Partners (G-P) provides Employer of Record (EOR) services to help businesses expand internationally.

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Core Features

G-P offers a platform for managing your workforce in Hawaii, including payroll, HR, compliance monitoring, and employee onboarding. The AI-powered Gia tool helps businesses stay current with changing labor laws, simplifying workforce management.

Pricing Model

G-P offers tailored pricing packages, such as Meridian Core, Prime, and Recruit, based on a company’s needs. Pricing details are not available online, and businesses must contact G-P for a quote. 

Pros and Cons

  • Pros

Cost-Effective Expansion

G-P helps businesses enter new markets without heavy upfront costs.

24/7 Support

Expert customer support is available around the clock.

Useful Add-Ons

Add-ons like Meridian Recruit and Meridian Contractor integrate well with the EOR platform.

  • Cons

Unclear Pricing

Pricing details are not transparent, and businesses must contact G-P for a quote.

No Standalone Payroll Option

Businesses with existing subsidiaries may find the lack of a standalone payroll option restrictive.

Verdict

Globalization Partners offers a comprehensive platform for payroll, compliance, and HR management, making it a valuable tool for business expansion. Despite unclear pricing, the strong customer support and useful integrations make it an appealing EOR solution.

How Does a Hawaii Employer of Record Work?

A Hawaii EOR firm makes hiring easier by handling all the legal and tax paperwork for businesses. This includes writing job contracts that follow state and federal laws, signing up employees for state tax withholding, and enrolling them in Hawaii’s Unemployment Insurance program.

The EOR also takes care of payroll, making sure wages, taxes, and other required deductions are processed correctly. Employers in Hawaii must pay Social Security and Medicare (FICA) taxes, as well as state unemployment insurance (SUI), which depends on their hiring and layoff history. Hawaii also requires businesses to provide Temporary Disability Insurance (TDI) to help employees who can not work due to illness or injury. On top of that, some businesses must offer up to four weeks of unpaid family leave under the Hawaii Family Leave Law (HFLL), but there is no statewide paid family leave program yet.

An EOR helps businesses follow all these rules, making the hiring process smoother and stress-free.

How Labor Laws Affect Hiring in Hawaii?

Hawaii’s labor laws make sure workers get fair pay, safe workplaces, and good treatment. As of January 1, 2025, the minimum wage is $14.00 per hour and will rise to $16.00 in 2026 and $18.00 in 2028 to help keep up with the cost of living. Workers who work more than 40 hours a week must be paid overtime at 1.5 times their normal pay. 

Farmworkers have slightly different rules. Farm owners can pick 20 weeks a year when they do not have to pay overtime until workers hit 48 hours. After that, overtime pay is required. Farmworkers are also covered by workers’ compensation, so if they get hurt on the job, they can get financial help. Employers must follow these rules, and those who do not could face penalties, so businesses need to stay up to date.

What Are the Benefits of a Hawaii Employer of Record?

Expanding into Hawaii’s diverse economy can be simplified by using a Hawaii EOR company, especially for companies unfamiliar with the state’s legal requirements. Hawaii has specific labor laws, tax requirements, and employment regulations that can be complicated. An EOR helps businesses quickly establish operations while avoiding the administrative burdens of entity registration, payroll processing, and workers’ compensation compliance.​

What Are the Downsides of a Hawaii EOR?

In Hawaii, businesses often struggle with the high cost of Employer of Record (EOR) services. The average private-sector worker earned about $35.99 per hour in 2023, and adding an EOR’s fee, usually 15% to 25% extra, can get expensive fast, especially for small and growing companies.

Another issue is that EORs take over tasks like payroll and HR, which can make it harder for business owners to directly manage their employees. This is a big concern in industries like manufacturing, which depend on hands-on leadership to keep things running smoothly.

Since EORs offer one-size-fits-all services, they may not always fit the unique needs of Hawaii’s businesses, which could make it harder for companies to grow and stay competitive over time.

How to Choose a Hawaii Employer of Record?

When choosing a Hawaii EOR provider, go for a company with a good reputation and a clear understanding of how jobs work in the state. A good EOR should handle payroll, hiring, and workplace rules while following Hawaii’s labor laws.

Since Hawaii has the highest number of union workers in the U.S. (about 26.5% of employees in 2024), it is helpful to pick an EOR that knows how to work with unions. They should also be honest about their prices so there are no surprise fees.

Hawaii’s economy depends on industries like tourism, healthcare, and education, so your EOR should understand these fields. Choosing the right EOR can help your business follow the rules and keep employees happy.

Engage a Hawaii Employer of Record with Remote People

Partner with Remote People for efficient Employer of Record services in Hawaii. We deliver fully managed EOR solutions that support compliant hiring while navigating Hawaii’s employment regulations with confidence. By handling payroll, employment contracts, tax compliance, and ongoing HR responsibilities, we simplify the hiring process and reduce administrative burden. Contact Remote People today to learn how our Hawaii EOR services can support your business operations.