Department of Labor and Regulation

Unemployment Insurance

Benefits - Frequently Asked Questions

Is money withheld from my wages to pay for UI benefits like for Social Security?

What can I do if I disagree with a decision regarding my claim?

Are unemployment insurance benefits taxable?

Will my employer be notified if I file for benefits?

How long will it take before I receive my first payment?

How and when do I file a claim for benefits in South Dakota?

How do I report a change of address?

Can benefit payments be directly deposited into a bank account?

Do I need to search for work?

What if I worked in more than one state?

Can I quit a job, or be fired from a job, and still receive unemployment insurance benefits?

Who can I contact with questions?

Is money withheld from my wages to pay for UI benefits like for Social Security?

No, UI benefits come from a tax paid by your employer(s) on your wages. Nothing is ever withheld from your check to pay for UI benefits.

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What can I do if I disagree with a decision regarding my claim?

The determination notice will explain how and when to appeal if you disagree with the decision. Please read these decisions carefully as soon as they are received, as your appeal rights expire within 15 days. You must appeal in writing. You may mail or fax your appeal to the following address:

Appeals Section
Unemployment Insurance Division
SD Department of Labor and Regulation
PO Box 4730
Aberdeen, SD 57402-4730
Fax: 605.626.2322

Be sure to include your Social Security number and explain the reason for appealing.

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Are unemployment insurance benefits taxable?

Yes. Unemployment insurance benefits are subject to federal income tax law. You can opt to have taxes automatically deducted from your benefits at the rate of 10 percent per week. Both you and the Internal Revenue Service will receive a year-end statement (Form 1099-G) in January, indicating the amount of UI benefits paid to you for the previous calendar year.

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Will my employer be notified if I file for benefits?

Yes. Each employer is requested to verify dates of employment and the reason you separated from your employment.

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How long will it take before I receive my first payment?

First payment is usually made three to four weeks after the claim is filed.

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How and when do I file a claim for benefits in South Dakota?

Your claim should be filed in the first week that you become totally or partially unemployed. You may contact the Call Center at 605.626.3179 or file online at www.sd.uiclaims.com by clicking on "File for Benefits." The Call Center operates Monday through Friday from 8 a.m. to 4:20 p.m. (CST). Speech and hearing impaired applicants may call the Relay Service of South Dakota at 800.877.1113.

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How do I report a change of address?

If you are changing your address within South Dakota, you may complete the claimant change of name and address form located in your PAM 247 blue book. You may change your address online at www.sd.uiclaims.com or by calling 605.626.3179. You may also complete and submit the claimant change of name and address form (in Adobe .pdf format*). If you do not contact us about your address change immediately, you may lose benefits.

If you are changing your address from South Dakota to another state, or if you are changing your address back to South Dakota from another state, you may change your address online at www.sd.uiclaims.com or by calling 605.626.3179. If you do not contact us about your address change immediately, you may lose benefits.

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Can benefit payments be directly deposited into a bank account?

Yes. Benefit payments will be issued to a U.S. Bank ReliaCard® Visa® debit card, which will be mailed when the unemployment insurance claim is filed. A direct deposit is also available. You must complete the enrollment form that was included in your claimant information packet, attach a voided check and return both to our office. You may also update your payment method online at www.sd.uiclaims.com. You will need to have your bank account and routing number available. For more information on the U.S. Bank ReliaCard® Visa® debit card, please see the Frequently Asked Questions flier (in Adobe .pdf format).

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Do I need to search for work?

Yes. The unemployment insurance division will notify you when you file your claim if you are required to search for work by making a minimum of two job contacts each week. You are required to keep a detailed record of your work search on pages 20-24 of the blue PAM 247 book, "Facts About Unemployment Insurance Benefits." You may be required to present this information up to two months after you file your last weekly certification.

If you are exempt from having to search for work due to being on recall to return to work for your employer, you MUST notify us of any changes in your recall status. If you are no longer on recall to go back to work for your employer, you must reopen your unemployment claim immediately to receive proper work search instructions. You may reopen your claim online at www.sd.uiclaims.com or by contacting the Call Center at 605.626.3179.

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What if I worked in more than one state?

Be sure to notify the claims taker when you file by phone what state(s) you worked in during the past 18 months. If all of your base period wages were earned outside of South Dakota, you may contact the Call Center at 605.626.3179 to obtain the appropriate telephone number or website address for that state.

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Can I quit a job, or be fired from a job, and still receive unemployment insurance benefits?

You may be disqualified from benefits if you quit your job or were fired.

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Who can I contact with questions?

Please contact the Benefits section at 605.626.2452.

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*Opening and printing Adobe .pdf files requires Adobe Acrobat Reader. Click here as needed to download the free Adobe Acrobat Reader.


Marcia Hultman, Secretary
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184