South Dakota New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an EIN (Employer Identification Number) with the IRS online.
- The IRS will assign you a unique nine-digit number to identify your business.
- To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN.”
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can easily register online for the EFTPS.
- You will be able to pay taxes and view payments made on your behalf with the Electronic Federal Tax Payment System (EFTPS).
- To find out more about EFTPS, please read our article, “What Is EFTPS?“
State of South Dakota Tax Accounts:
- New employers in South Dakota can register online with the Department of Labor and Regulations for their state unemployment insurance (SUI) account.
- Upon completion of your registration, you will be given a state unemployment tax assessment (SUTA) account, an unemployment tax rate, and a PIN for filing quarterly wages.
- To learn more about registering your business, please visit the SD Department of Labor and Regulation.
- South Dakota new employer SUTA rate for 2023 is 1.2%, plus an additional 0.55% Investment Fee for non-construction employers. For construction employers, the SUTA rate for 2023 is 6.0%, plus a 0.55% Investment Fee.
- Employers in South Dakota will receive a new State Unemployment Tax Assessment (SUTA) rate for years 2 and 3 of business. The rate is 1%, plus a 0.55% Investment Fee, for non-construction employers and 3%, plus a 0.55% Investment Fee, for construction employers if there is a positive account balance.
- To learn more about South Dakota Unemployment Insurance Tax, visit the South Dakota Department of Labor and Regulations.
- To learn more about SUTA, please read our article, “What Is SUTA Tax?”
Setting Up Your New Employee:
- Fill out the required Form I-9 for employee verification for working in the USA.
- This is a two-part form. The first section is to be completed by the employee and the second half is to be completed by the employer. To learn more, please read, “Form I-9 In a Nutshell.”
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information please read, “What Should Be in an Employee File?”
- Employees need to fill out the federal Form W-4, Employee’s Withholding Certificate for federal income taxes.
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- Employers in South Dakota need to report new hires online within 20 days of hire or rehire with the South Dakota Department of Labor & Regulation.
- You can also phone 888-827-6078 (toll-free), fax 888-835-8659 (toll-free) or mail the SD New Hire Reporting Form to the DLR.
- For more information please read our article, “What Is New Hire Reporting?”
South Dakota’s minimum wage is $10.80 per hour for 2023. You will need to display the minimum wage poster for your employees, as required by law.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information please read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
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