Department of Labor and Regulation

Title - Unemployment Insurance

Unemployment Insurance Benefits - Deductions from Benefits

Can I work part of the week and still be eligible for benefits?

Yes, if you are still seeking full-time work, your earnings do not exceed your weekly benefit amount and you worked less than 40 hours for the week, you may be eligible for partial benefits. You must report your earnings on your weekly claim form. Earnings may reduce your benefits.

Click here for additional information on reporting work and earnings.

Do I need to notify the Unemployment Insurance Division if my job ends?

Yes, if at any time during your benefit year you return to work and then separate from the job, you must call a telephone claims representative immediately to reopen your claim. Claims do not have to be reopened if you are doing occasional work for your regular employer.

Your reopened claim is effective from the first day of the week in which you file the claim. You will lose benefits if you do not call the Telephone Claims Center and reopen your claim immediately after you separate from employment.

Your eligibility for benefits will be based on the reason you separated from the employment.

Do I need to report my self-employment?

Yes, you must report on a weekly basis any hours and, in some cases, earnings from self-employment.

To be self-employed means earning income directly from your own business, trade, profession or service rather than as wages or earnings from an employer. The fact that your business has no taxable income, or even a loss, does not mean hours or earnings need not be reported. Contact the Benefit Section at 605.626.2452 for help.

If you do sales work on a commission basis, the hours you work each week, as well as your gross earnings, must be reported. If you work full time, you will be considered fully employed and not eligible for benefits.

Click here for additional information on how to report your self-employment.

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Are things like vacation pay and severance pay deductible from my benefits?

Yes, other payments you may receive are deducted on a dollar-for-dollar basis from your benefits and must be reported on your weekly claim form. Payments that are deductible include:

  • Vacation Pay
  • Annual Leave Pay
  • Wages in Lieu of Notice
  • Temporary/Partial Workers' Compensation
  • Severance Pay
  • Holiday Pay
  • Back Pay
  • Termination Pay
  • Dismissal Pay
  • Sick Leave Pay

Click here for additional information on reporting deductible income.

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Are pensions deductible?

Pensions, annuities and retirement payments are deductible if earned with a base period employer. However, only that portion of the pension, annuity or retirement payment which is based on payments made by the employer is deductible from your benefits.

Click here for additional information on pension reporting.

Military-service-connected disability payments are not deductible from your benefits.

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If you have any questions about whether an item is deductible, contact the Benefits Section at 605.626.2452. Failure to report a deductible item or report it properly may result in an overpayment which you will be required to repay.


Pamela S. Roberts, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184

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