If passed, HB81 will amend Chapter 235 of the Hawaii Revised Statutes by adding a new section specifically for the telework tax credit. Under the provisions of the bill, small businesses that allow at least 30% of their workforce to telework will be eligible for a tax credit. This credit will be deductible from the employer's net income tax liability for the taxable year in which it is claimed, thereby reducing the overall tax burden for qualifying employers. Employers will need to document their claims properly and may carry over any excess credit to future tax years until fully utilized.
Summary
House Bill 81 is a legislative measure that proposes to establish a tax credit for small business employers in Hawaii who permit their employees to telework. The bill recognizes the growing trend of telework and its associated benefits, which include increased job satisfaction for employees, the potential for improved internet access in rural areas, and a reduction in traffic congestion and carbon emissions. By incentivizing small businesses to support telework arrangements, the bill aims to enhance the local job market and promote economic development in the state.
Contention
While proponents of HB81 argue that the bill is a necessary step to modernize workplace practices and support small businesses, there may be points of contention regarding its fiscal implications on state revenue and the feasibility of compliance by small employers. Critics can argue that this legislation may not adequately address the needs of all businesses or that it could incentivize practices that may not align with the operational realities of certain sectors. There may also be debates over the definition of 'small business' and the percentage of employees required to be eligible for the tax credits, as these conditions could impact a significant number of businesses in Hawaii.
Requiring Effective Management and Oversight of Teleworking Employees Act or the REMOTE ActThis bill directs executive agencies to track employees' computer network activity, compare the activity of teleworking and on-site employees, and report on any deficiencies in the performance of teleworking employees.First, the bill requires each agency to establish policies to track for every employee (1) the average number of daily logins, (2) the average daily duration of the network connection, and (3) the network traffic generated while the employee works. This information must be collected from employees working primarily on-site within 180 days after the bill's enactment and from teleworking employees within one year after the bill's enactment. The bill also directs each agency to publish this data in the agency’s fiscal year budget justification materials, including a comparison of the average login rates of on-site and teleworking employees.Next, the bill directs any manager who revokes a teleworking employee's authorization to telework (due to a reason specific to that employee) to document for the employee and the agency's Human Capital Office (1) the total number of days that the employee teleworked in the six work periods immediately preceding the revocation, (2) a narrative summary of the circumstances giving rise to the revocation, and (3) any steps the manager took to discipline the employee before revoking the employee's telework authorization. Finally, agencies must report to the Chief Human Capital Officers Council about any adverse effects of telework policies on the performance of the executive agency.