Unemployment Insurance Tax (FUTA/SUTA): South Dakota
Federal law and guidance on this subject should be reviewed together with this section.
Author: Vicki M. Lambert, The Payroll Advisor
- Under South Dakota law, a worker is presumed to be an employee and covered for unemployment insurance tax purposes unless the Department of Labor and Regulation (DLR) determines that certain factors are present. See Determining Coverage.
- Experienced employers' SUI tax rates are determined according to the rate table in effect for the current year. New construction and nonconstruction employers pay at set rates, respectively. Employers receive a notice of experience rating no later than November of each year. Each employer's rate is calculated annually based on the individual employer's previous UI experience. See Contribution Rates; Experience Rating Method.
- South Dakota's SUTA dumping law follows the federal model SUTA dumping law. See SUTA Dumping.
- South Dakota law permits employers to voluntarily pay an additional UI contribution to obtain a lower rate. South Dakota law also permits two or more employers that are liable for payments in lieu of contributions to apply for a group account for the purpose of sharing the cost of benefits paid. Common paymasters are recognized. See Voluntary Contributions; Joint or Combined Accounts.
- Employers must file quarterly contribution and wage reports by the last day of the month following the end of each calendar quarter. Report may be filed electronically, but it is not required. Penalties and interest are assessed for late reports and payments of contributions. See Quarterly Reporting Requirements.
- An employer's account will be charged for overpayments caused by the employer's failure to properly respond to requests for claim information. See Benefit Overpayments.
- Employers may voluntarily submit the Multiple Worksite Report, Form BLS 3020, although they are not required to do so. See Multiple Worksite Reporting.
- Employers are required to keep certain payroll records on each employee for at least four years. See Recordkeeping Requirements.