Payroll South Dakota Unique Aspects Of South Dakota Payroll Law And Practice

South Dakota has no State Income Tax. There for there is no State Agency to oversee withholding deposits and reports. There are no State W2's to file, no supplement wage withholding rates and no State W2's to file.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In South Dakota cafeteria plans are taxable for unemployment insurance purposes. 401(k) plan deferrals are taxable unemployment purposes.

South Dakota doesn't have income tax.

The South Dakota State Unemployment Insurance Agency is:

Department of Labor

Unemployment Insurance Division

Box 4730, 420 S. Roosevelt St.

Aberdeen, SD 57402-4730

(605) 626-2452

The State of South Dakota taxable wage base for unemployment purposes is wages up to $7,000.00.

South Dakota has optional reporting of quarterly wages on magnetic media.

Unemployment records must be retained in South Dakota for a minimum period of four years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The South Dakota State Agency charged with enforcing the state wage and hour laws is:

Department of Labor

Division of Labor and Management

700 Governors Dr.

Pierre, SD 57501-2291

(605) 773-3681

The minimum wage in South Dakota is $5.15 per hour.

There is also no general provision in South Dakota State Law covering paying overtime in a non-FLSA covered employer.

South Dakota State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

Employee's name

Employee's address

Employee's social security number

Employer's name

Employers address

Employer's Federal Employer Identification Number (EIN)

This information must be reported within 20 days of the hiring or rehiring.

The information can be sent as a W4 or equivalent by mail, fax or electronically.

There is a civil proceeding for a petty offense for a late report in South Dakota.

South Dakota does allow compulsory direct deposit but the employee's choice of financial institution must meet federal Regulation E regarding choice of financial institutions.

South Dakota has no State Wage and Hour Law provisions concerning pay stub information.

South Dakota requires that employee be paid no less often than monthly.

In South Dakota there are no statutory requirements concerning the lag time between when the services are performed and when the employee must be paid.

South Dakota payroll law requires that involuntarily terminated employees must be paid their final pay by next regular payday if all employer property is returned and that voluntarily terminated employees must be paid their final pay by the next regular payday if all employer property is returned.

There is no provision in South Dakota law concerning paying deceased employees.

Escheat laws in South Dakota require that unclaimed wages be paid over to the state after one year.

The employer is further required in South Dakota to keep a record of the wages abandoned and turned over to the state for a period of ten years.

South Dakota payroll law mandates no more than $3.02 may be used as a tip credit.

In the South Dakota payroll law there is no provision covering required rest or meal periods.