Marcia Hultman

Cabinet Secretary

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Unemployment Insurance Tax

Wage Reporting

How do I file?

When do I file?

How much penalty and interest accrue on late reports?

What are the minimum and maximum unemployment insurance tax rates in South Dakota?

What is South Dakota's taxable wage base?

Can I file wage reports electronically?

What if I didn't have any employees during this quarter?

How do I make corrections on previously filed wage reports?

What are wages?

Are the wages paid to immediate family members exempt from unemployment insurance tax?

How do I file my wage reports?

The fastest and most efficient way for employers to file their quarterly wage report is online, through the Internet Quarterly Wage Reporting System. It is fast, safe and secure!

The Internet Quarterly Wage Reporting System offers two versions to report quarterly wages. One version is a click once application which updates any changes to your computer each time you access the application and only works with Internet Explorer. It allows the uploading of multiple file types directly into the system, calculates totals, offers payment by Electronic Funds Transfer (EFT) or payment by check with a voucher. This version is recommended for employers with over 100 employees.

The second version works with Internet Explorer, Microsoft Edge, Google Chrome, Mozilla Firefox, and Safari browsers. It also offers an option to upload a file directly, but the file must be a comma delimited file in a specific format. The system also calculates all the totals and offers two payment options.

Employers can access either version to view and print previously filed reports, change business contact and mailing information, inform the department of a change in the business, and view statement of benefit charges.
Another option is to complete and mail a paper return. The Employers Quarterly Contribution, Investment Fee, and Wage Report (Form 21) is available on our Forms page.

Domestic employers who report annually must submit using the Annual Wage Report (Form 21D & E). The form is available on our Forms page.

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When do I file my wage reports?

In South Dakota, wage reports are filed quarterly.

Quarter

Reporting Period Opens

Wage Report Must Be Received By

January 1 to March 31

April 1st

April 30

April 1 to June 30

July 1st

July 31

July 1 to September 30

October 1st

October 31

October 1 to December 31

January 1st

January 31

It is your responsibility to submit your report by the deadline. You should notify the Unemployment Insurance Tax Unit immediately at 605.626.2312 if you have not received your report or have issues receiving your mail.

With prior approval, domestic employers may report annually.

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How much penalty and interest accrue on late reports?

The late filing penalty is $25.00 per month or fractional portion of a month from due date of the report.

The late payment penalty is $25.00 per month or fractional portion of a month from due date of the report.

Interest is 1.5 percent per month or fractional portion of a month from due date of the report.

For example, the 2nd quarter report that is due in July isn’t filed until September. A $50 penalty is assessed for late filing, a $50 penalty is assessed for late payment, and interest of 3 percent is applied to the tax amount due.

In addition to late penalties and interest, subpoenas can be issued to obtain your payroll records.

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What are the minimum and maximum unemployment insurance tax rates in South Dakota?

The minimum tax rate is 0 percent. The maximum tax rate is 9.5 percent.

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What is South Dakota's taxable wage base?

The table below shows South Dakota's taxable wage base for each employer over the past few years.

Taxable Wage Base*

2012

2013

2014

2015 & after

$12,000

$13,000

$14,000

$15,000

 

 

 

 

 

 

Please note: All rates and wage bases subject to change by the South Dakota Legislature.

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Can I file wage reports electronically?

Yes. There are two ways that you can report electronically:

  1. Report online using the Internet Quarterly Wage Reporting System. If you have not reported using this method, you must first create a UserID and Password. You will be required to associate your UserID to the Authentication Key and Security Code provided to you when you registered your business. If you cannot find this information you can contact the department at 605.626.2312.
  2. Report via CD or DVD. Employers must have a computerized payroll package that has the capability of creating an ASCII file that meets our format specifications. See the instructions for reporting on CD or DVD (Adobe PDF format).

For additional information regarding the electronic reporting options, contact the Unemployment Insurance Tax Unit at 605.626.2312.

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What if I didn't have any employees during this quarter?

You must still file a timely Quarterly Wage Report, even though there is no tax due. We have no other way of knowing you had no employees or wages paid during the quarter. Penalties will apply to zero wage reports filed late.

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How do I make corrections on previously filed wage reports?

A Statement to Correct Information Previously Submitted (Form 21C) is available on our UI Forms page. You can also call the UI Tax Unit at 605.626.2312 for a form or contact your local UI tax representative using the contact information on our Field Locations page.

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What are wages?

Wages include all payments for personal services from all sources. This includes commissions, bonuses and the cash value of any payment in anything other than cash. Cash value includes items such as goods, board and lodging, and working out a debt, etc.

Tips and gratuities must be reported if they total more than $20 per month and are reported by the worker to the employer. These tips are to be included in the gross wages of the employee.

The following is a list of payments that are frequently asked about.

These are included wages for South Dakota Unemployment Insurance:

  • Vacation/Annual Leave
  • Sick/Medical Pay
  • Gifts/Awards
  • Employee Contributions to Retirement Plans or Annuities Plans
  • Cafeteria/Section 125 Plans
  • On-the-Job Training
  • Profit Sharing
  • Savings Plans

These are not included as wages for South Dakota Unemployment Insurance:

  • Termination/Severance (if not legally required to pay)
  • Dismissal Pay/Wages in Lieu of Notice (if not legally required to pay)
  • Employer Contributions to Retirement or Pension Plans Authorized Under 401(k), 403(b), 408(k), 408(p) or 457
  • Elected Officials
  • Work Study Students at a non-profit or public educational institution

Please note: These are not all-inclusive lists. For more complete information, contact the Unemployment Insurance Tax Unit at 605.626.2312 or your local Tax Representative using our Field Locations page.

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Are the wages paid to immediate family members exempt from unemployment insurance tax?

The exemption for immediate family members depends on the ownership type of the business.

Sole proprietorships have several family exemptions: you, your children under 21 (including step-children), your spouse, and your parents.

Only the partners are exempt in a partnership.

Corporations do not have any family exemptions, including officers and owners.

A Limited Liability Company (LLC) or Limited Liability Partnership (LLP) allows an exemption for members if the company reports to the IRS as a sole proprietor or partnership.

A Limited Liability Company (LLC) that files with the IRS as a corporation does not have any exemptions, including members and owners.

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