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Reemployment Assistance 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 reemployment assistance 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 reemployment assistance 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 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 calculates all the totals and offers payment by Electronic Funds Transfer (EFT) or payment by check with a voucher.

Employers can 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.

It is your responsibility to submit your report by the deadline. You should notify the Reemployment Assistance 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 reemployment assistance 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.

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 Reemployment Assistance 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 RA Forms page. You can also call the RA Tax Unit at 605.626.2312 for a form or contact your local RA 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 Reemployment Assistance:

• 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 Reemployment Assistance:

• 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 Reemployment Assistance 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 reemployment assistance 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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