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