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