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Unemployment Insurance Tax
The Unemployment Insurance Tax Unit is responsible for identifying and registering subject employers, insuring wage reports are filed so benefit eligibility can be established, collecting taxes due, and auditing employers for compliance.
South Dakota's unemployment insurance program is financed by employers through payroll taxes. When a person becomes unemployed, benefits are paid to claimants if eligible by meeting conditions set by state law.
If you are a liable employer under state law, you may also be required to pay under the Federal Unemployment Insurance Tax Act (FUTA). This federal tax helps finance South Dakota Department of Labor Programs such as placement, labor market information and training of workers to meet industry needs; it also pays the administrative costs of the state unemployment insurance program.
Employer News & Updates
UI Tax Rate Reduction
Unemployment Insurance (UI) tax rates were reduced effective Jan. 1, 2018. Legislation in 2017 ...
Effective July 1, 2016, there are penalties for failure to ...
2018 Wage Base and Rate Information
The wage base for calendar year 2018 will remain at $15,000. Rate notices for calendar year 2018 were mailed to employers on Oct. 30, 2017. There is no surcharge for calendar year 2018. If you have questions regarding your rate or need a replacement rate notice, please contact the Unemployment Insurance Tax Unit at 605.626.2312.
|Quarterly Report Filing Deadlines|
|Quarter||Filing Period Begins||Due Dates|
|1st Quarter||April 1||April 30|
|2nd Quarter||July 1||July 31|
|3rd Quarter||October 1||October 31|
|4th Quarter||January 1||January 31|
|Reports must be received by the last day of the month following the end of the quarter.|
|New Employer Tax Rates|
|UI Tax||Investment Fee||Administrative Fee|
|Year 1||1.20%||6.00%||0.55%||Not Applicable|
|Years 2 & 3||1.00%*||3.00%*||0.55%||Not Applicable|
|(*Applies to those with a positive account balance.)|
Statements in this website are for general information and do not have the effect of law or regulation. The unemployment insurance laws and regulations are contained in a publication available from the Division upon request.
Unemployment Insurance Division - Tax Unit
South Dakota Department of Labor and Regulation
420 S. Roosevelt
P.O. Box 4730
Aberdeen, SD 57402-4730