| South Dakota has no State Income Tax. There for | | | | meet federal Regulation E regarding choice of financial |
| there is no State Agency to oversee withholding | | | | institutions. |
| deposits and reports. There are no State W2's to file, | | | | South Dakota has no State Wage and Hour Law |
| no supplement wage withholding rates and no State | | | | provisions concerning pay stub information. |
| W2's to file. | | | | South Dakota requires that employee be paid no less |
| Not all states allow salary reductions made under | | | | often than monthly. |
| Section 125 cafeteria plans or 401(k) to be treated in | | | | In South Dakota there are no statutory requirements |
| the same manner as the IRS code allows. In South | | | | concerning the lag time between when the services |
| Dakota cafeteria plans are taxable for unemployment | | | | are performed and when the employee must be paid. |
| insurance purposes. 401(k) plan deferrals are taxable | | | | South Dakota payroll law requires that involuntarily |
| unemployment purposes. | | | | terminated employees must be paid their final pay by |
| South Dakota doesn't have income tax. | | | | next regular payday if all employer property is returned |
| The South Dakota State Unemployment Insurance | | | | and that voluntarily terminated employees must be |
| Agency is: | | | | paid their final pay by the next regular payday if all |
| Department of Labor | | | | employer property is returned. |
| Unemployment Insurance Division | | | | There is no provision in South Dakota law concerning |
| Box 4730, 420 S. Roosevelt St. | | | | paying deceased employees. |
| Aberdeen, SD 57402-4730 | | | | Escheat laws in South Dakota require that unclaimed |
| (605) 626-2452 | | | | wages be paid over to the state after one year. |
| The State of South Dakota taxable wage base for | | | | The employer is further required in South Dakota to |
| unemployment purposes is wages up to $7,000.00. | | | | keep a record of the wages abandoned and turned |
| South Dakota has optional reporting of quarterly | | | | over to the state for a period of ten years. |
| wages on magnetic media. | | | | South Dakota payroll law mandates no more than |
| Unemployment records must be retained in South | | | | $3.02 may be used as a tip credit. |
| Dakota for a minimum period of four years. This | | | | In the South Dakota payroll law there is no provision |
| information generally includes: name; social security | | | | covering required rest or meal periods. |
| number; dates of hire, rehire and termination; wages by | | | | South Dakota statute requires that wage and hour |
| period; payroll pay periods and pay dates; date and | | | | records be kept for a reasonable period. These |
| circumstances of termination. | | | | records will normally consist of at least the information |
| The South Dakota State Agency charged with | | | | required under FLSA. |
| enforcing the state wage and hour laws is: | | | | The South Dakota agency charged with enforcing |
| Department of Labor | | | | Child Support Orders and laws is: |
| Division of Labor and Management | | | | Office of Child Support Enforcement |
| 700 Governors Dr. | | | | Department of Social Services |
| Pierre, SD 57501-2291 | | | | 700 Governor's Dr. |
| (605) 773-3681 | | | | Pierre, SD 57501-2291 |
| The minimum wage in South Dakota is $5.15 per hour. | | | | (605) 773-3641 |
| There is also no general provision in South Dakota | | | | South Dakota has the following provisions for child |
| State Law covering paying overtime in a non-FLSA | | | | support deductions: |
| covered employer. | | | | - When to start Withholding? Next payday after |
| South Dakota State new hire reporting requirements | | | | service. |
| are that every employer must report every new hire | | | | - When to send Payment? Within 7 days of Payday. |
| and rehire. The employer must report the federally | | | | - When to send Termination Notice? Within 5 days of |
| required elements of: | | | | termination. |
| - Employee's name | | | | - Maximum Administrative Fee? no provision |
| - Employee's address | | | | - Withholding Limits? 50% of income. |
| - Employee's social security number | | | | Please note that this article is not updated for changes |
| - Employer's name | | | | that can and will happen from time to time. |
| - Employers address | | | | Charles J. Read, CPA has been in the payroll, |
| - Employer's Federal Employer Identification Number | | | | accounting and tax business for 30 years,the last |
| (EIN) | | | | fifteen in private practice. Mr. Read is the author of |
| This information must be reported within 20 days of | | | | "Tax and Accounting Issuesin Forming a New |
| the hiring or rehiring. | | | | Business." |
| The information can be sent as a W4 or equivalent by | | | | To find professional payroll services at a budget price |
| mail, fax or electronically. | | | | go to paperless payroll company. |
| There is a civil proceeding for a petty offense for a | | | | For a full service payroll bureau with CPA's on staff |
| late report in South Dakota. | | | | visit . |
| The South Dakota new hire-reporting agency can be | | | | See an excerpt of Mr. Read's interviews from William |
| reached at 888-827-6078 or on the web at | | | | Shatner's "Heartbeat of America"television show on |
| South Dakota does allow compulsory direct deposit | | | | the web sites linked above. |
| but the employee's choice of financial institution must | | | | |