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South Dakota Unemployment Insurance Setup in Patriot Software

Background

If you have employees in the state of South Dakota, you must register for unemployment insurance.  You will receive a rate notice from the South Dakota Department of Labor and Regulation each year.  Your rate is based on your industry and unemployment claim history.  Your unemployment tax rates are broken into three separate components:

  1. The regular SUTA rate:  The SUTA rate will depend on your industry, how long you have been in business, and your claims experience.
  2. Administrative rate:  The administrative rate is a fixed rate of 0.02%, but some businesses qualify for a 0% administrative rate.
  3. Investment Fee Rate:  This is not credited to your experience-rating account.  The proceeds from this fee are used for one-time research grants and economic development projects.

For more information, see the South Dakota Unemployment Insurance Tax Website.  Also see our state guide South Dakota New Employer Information.

To set up South Dakota Unemployment Tax Rates in Patriot Software

Payroll > Settings > Payroll Settings > State Unemployment Rates

There are two different tax rates you’ll need to enter:

  • South Dakota Employer Investment Fee Tax
  • South Dakota State Unemployment (SUTA)

Click Edit next to each section to enter these tax rates one at a time.

When you enter your SUTA rate, you will check the box if your business qualifies for the 0% Administrative rate.  Refer to your rate notice.  Otherwise, the Administrative rate is fixed at 0.02%.

The Rate History section shows the history all of the rates you had previously entered.  You will need to update these rates each year when you receive your tax notice from the South Dakota Department of Labor and Regulation.

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