Payroll South Dakota, Unique Aspects of South Dakota Payroll Law and Practice

South Dakota has no State Income Tax. ThereThe South Dakota new hire-reporting agency can
for there is no State Agency to overseebe reached at 888-827-6078 or on the web at
withholding deposits and reports. There are noSouth Dakota does allow compulsory direct
State W2's to file, no supplement wagedeposit but the employee's choice of financial
withholding rates and no State W2's to file.institution must meet federal Regulation E
Not all states allow salary reductions made underregarding choice of financial institutions.
Section 125 cafeteria plans or 401(k) to beSouth Dakota has no State Wage and Hour Law
treated in the same manner as the IRS codeprovisions concerning pay stub information.
allows. In Nevada cafeteria plans are taxable forSouth Dakota requires that employee be paid no
unemployment insurance purposes. 401(k) planless often than monthly.
deferrals are taxable unemployment purposes.In South Dakota there are no statutory
South Dakota doesn't have income tax.requirements concerning the lag time between
The South Dakota State Unemploymentwhen the services are performed and when the
Insurance Agency is:employee must be paid.
Department of LaborSouth Dakota payroll law requires that involuntarily
Unemployment Insurance Divisionterminated employees must be paid their final pay
Box 4730, 420 S. Roosevelt St.by next regular payday if all employer property is
Aberdeen, SD 57402-4730returned and that voluntarily terminated
(605) 626-2452employees must be paid their final pay by the
The State of South Dakota taxable wage basenext regular payday if all employer property is
for unemployment purposes is wages up toreturned.
$7,000.00.There is no provision in South Dakota law
South Dakota has optional reporting of quarterlyconcerning paying deceased employees.
wages on magnetic media.Escheat laws in South Dakota require that
Unemployment records must be retained in Southunclaimed wages be paid over to the state after
Dakota for a minimum period of four years. Thisone year.
information generally includes: name; social securityThe employer is further required in South Dakota
number; dates of hire, rehire and termination;to keep a record of the wages abandoned and
wages by period; payroll pay periods and payturned over to the state for a period of ten
dates; date and circumstances of termination.years.
The South Dakota State Agency charged withSouth Dakota payroll law mandates no more than
enforcing the state wage and hour laws is:$3.02 may be used as a tip credit.
Department of LaborIn the South Dakota payroll law there is no
Division of Labor and Managementprovision covering required rest or meal periods.
700 Governors Dr.South Dakota statute requires that wage and
Pierre, SD 57501-2291hour records be kept for a reasonable period.
(605) 773-3681These records will normally consist of at least the
The minimum wage in South Dakota is $5.15 perinformation required under FLSA.
hour.The South Dakota agency charged with enforcing
There is also no general provision in South DakotaChild Support Orders and laws is:
State Law covering paying overtime in aOffice of Child Support Enforcement
non-FLSA covered employer.Department of Social Services
South Dakota State new hire reporting700 Governor's Dr.
requirements are that every employer mustPierre, SD 57501-2291
report every new hire and rehire. The employer(605) 773-3641
must report the federally required elements of:South Dakota has the following provisions for child
Employee's namesupport deductions:
Employee's addressWhen to start Withholding? Next payday after
Employee's social security numberservice.
Employer's nameWhen to send Payment? Within 7 days of
Employers addressPayday.
Employer's Federal Employer Identification NumberWhen to send Termination Notice? Within 5 days
(EIN)of termination.
This information must be reported within 20 daysMaximum Administrative Fee? no provision
of the hiring or rehiring.Withholding Limits? 50% of income.
The information can be sent as a W4 orPlease note that this article is not updated for
equivalent by mail, fax or electronically.changes that can and will happen from time to
There is a civil proceeding for a petty offense fortime.
a late report in South Dakota.