Unemployment Insurance Tax - Wages and Wage Reporting
How do I file my wage reports?
When do I need to file my wage reports?
How much penalty and interest accrue on late reports?
What are the minimum and maximum 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?
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 website. This website is for employers who have registered with the Unemployment Insurance Tax Division and have an active account number. The system automatically calculates the gross, excess and taxable wages, and computes the taxes due. Employers can also submit a payment using Electronic Funds Transfer (EFT). It is fast, safe and secure! If you need to register with the Unemployment Insurance Tax Division, please see our Employer Registration Web page.
Please note, you must use Internet Explorer version 6.0 or higher and a .Net 2.0 framework. The system will also work with Firefox, Google Chrome, Safari and Opera Internet browsers when a plugin is installed to run “ClickOnce” applications.
If you are a Macintosh (Mac) user, or are using Firefox, Google Chrome or Safari Internet browsers without an appropraite plugin (as mentioned above) installed and do not have access to Internet Explorer, you may use an alternative filing method. Please note, the alternative filing method is not recommended for more than 25 employees. Choose the "Alternative Filing Method" option from the left-hand menu on the Internet Quarterly Wage Reporting website.
Another option is to complete and return, by mail, an Employer's Quarterly Contribution, Investment Fee and Wage Report, Form 21. Both Microsoft Excel and Adobe .pdf formats are available on our Forms Web page.
When do I file my wage reports?
In South Dakota, wage reports are filed quarterly. (Click here for the needed forms.)
Quarter |
Wage report due date |
| January 1 to March 31 | Postmarked by April 30 |
| April 1 to June 30 | Postmarked by July 31 |
| July 1 to September 30 | Postmarked by October 31 |
| October 1 to December 31 | Postmarked by January 31 |
It is your responsibility to submit your report by the deadline. If you notice mailing problems or have not received the report, you should notify the Unemployment Insurance Tax Unit immediately at 605.626.2312.
How much penalty and interest accrue on late reports?
The late filing penalty is $5.00 per month the report is late.
The late payment penalty is $5.00 per month the payment is late.
Interest is 1.5 percent per month the payment is late.
In addition to late penalties and interest, subpoenas can be issued to obtain your payroll records.
What are the minimum and maximum tax rates in South Dakota?
The minimum tax rate is 0 percent. The maximum tax rate is 9.5 percent.
What is South Dakota's taxable wage base?
The table below shows South Dakota's taxable wage base for each employer over the next few years.
Taxable Wage Base* |
||||||
2009 |
2010 |
2011 | 2012 | 2013 | 2014 | 2015 & after |
$9,500 |
$10,000 |
$11,000 | $12,000 | $13,000 | $14,000 | $15,000 |
*All rates and wage bases subject to change by the South Dakota Legislature.
Can I file wage reports electronically?
Yes. You may report electronically in either of two ways:
- Report online using the Internet Quarterly Wage Reporting System. You will need to create your own user ID and password, and then associate your UI accounts with the user ID and password. The Internet Unemployment Report calculates excess wages and the amount of tax due. Employers are given the option to pay the amount due using Electronic Funds Transfer or by check.
- 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. Click here for more information (in Adobe .pdf format*).
For additional information regarding the electronic reporting options, contact the Unemployment Insurance Tax Unit at 605.626.2312.
What if I didn't have any employees during this quarter?
You must still file a Wage Report, even though there is no tax due. A $0.00 wage report needs to be filed. We have no other way of knowing you had no employees or wages paid during the quarter.
How do I make corrections on previously filed wage reports?
The only way to make corrections on previously filed Wage Reports is to submit a Form 21C, Statement to Correct Information Previously Submitted. Click here for Form 21C, call the UI Tax Unit at 605.626.2312 for a form or contact your local UI tax representative. (Click here for Field Locations and Contact Information.)
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
*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. (Click here for office locations and contact information.)
Are the wages paid to immediate family members exempt from unemployment insurance tax?
If your business is a sole proprietorship you have several family exemptions: you, your children under 21 (including step-children), your spouse and your parents.
If your business is a partnership, the partners are exempt.
If your business is a Limited Liability Company (LLC) or Limited Liability Partnership (LLP), members are exempt as long as you are reporting your company income to the IRS as a sole proprietor or partnership.
If your business is a corporation or an LLC or LLP reporting as a corporation, there are no family exemptions, including yourself.
*Opening and printing Adobe .pdf files requires Adobe Acrobat Reader. Click here as needed to download the free Adobe Acrobat Reader.
700 Governors Drive
Pierre, SD 57501-2291
Tel. 605.773.3101
Fax. 605.773.6184
