§235-64  Taxes withheld by employer held intrust; employer's liability.  (a)  All taxes withheld by any employer undersection 235-61 shall be held in trust by the employer for the State and for thepayment of the same to the collector in the manner and at the time required bythis chapter.  If any employer fails, neglects, or refuses to deduct andwithhold from the wages paid to an employee, or to pay over, the amount of taxrequired, the employer shall be liable to pay to the State the amount of the tax. An employer may recover from an employee any amount which the employer shouldhave withheld but did not withhold from the employee's wages, if the employerhas been required to pay and has paid the amount to the State out of theemployer's own funds pursuant to this section.

(b)  In addition to the liability imposed bysubsection (a), if any employer fails, neglects, or refuses to deduct andwithhold from the wages paid to any employee, or to pay over, the amount of taxrequired, any person excluding those who have only ministerial duties, who isunder a duty to deduct and withhold or to pay over, the amount of tax required,and who wilfully fails to perform such duty, shall be liable to the State forthe amount of the tax.  The liability may be assessed and collected in the samemanner as the liability imposed by subsection (a); provided that two or morepersons may be assessed under this subsection jointly or in the alternative,but the tax shall be collected only once with respect to the same wages.  Thevoluntary or involuntary dissolution of the employer, or the withdrawal andsurrender of its right to engage in business within this State shall notdischarge the liability hereby imposed. [L Sp 1957, c 1, pt of §2; am L 1959, c277, §11; Supp, §121-19; HRS §235-64; am L 1974, c 11, §1; gen ch 1985; am L1990, c 82, §1; am L 2002, c 153, §4]

 

Note

 

  The 2002 amendment applies to withholding requirements forpayroll periods beginning on or after July 1, 2002.  L 2002, c 223, §7(2).