§235-64  Taxes withheld by employer held in
trust; employer's liability.  (a)  All taxes withheld by any employer under
section 235-61 shall be held in trust by the employer for the State and for the
payment of the same to the collector in the manner and at the time required by
this chapter.  If any employer fails, neglects, or refuses to deduct and
withhold from the wages paid to an employee, or to pay over, the amount of tax
required, 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 should
have withheld but did not withhold from the employee's wages, if the employer
has been required to pay and has paid the amount to the State out of the
employer's own funds pursuant to this section.



(b)  In addition to the liability imposed by
subsection (a), if any employer fails, neglects, or refuses to deduct and
withhold from the wages paid to any employee, or to pay over, the amount of tax
required, any person excluding those who have only ministerial duties, who is
under 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 for
the amount of the tax.  The liability may be assessed and collected in the same
manner as the liability imposed by subsection (a); provided that two or more
persons 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.  The
voluntary or involuntary dissolution of the employer, or the withdrawal and
surrender of its right to engage in business within this State shall not
discharge the liability hereby imposed. [L Sp 1957, c 1, pt of §2; am L 1959, c
277, §11; Supp, §121-19; HRS §235-64; am L 1974, c 11, §1; gen ch 1985; am L
1990, c 82, §1; am L 2002, c 153, §4]



 



Note



 



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