South Dakota Salary Paycheck Calculator
South Dakota is home to the Badlands. But one thing that’s not so bad is South Dakota payroll taxes, because we’re here to help by answering your frequently asked payroll questions.
South Dakota state payroll tax FAQs
What’s the personal income tax rate in South Dakota?
South Dakota doesn’t have a state income tax on individuals. Therefore, there is no income tax to take out of your employees’ paychecks.
What’s the unemployment tax rate in South Dakota?
South Dakota’s unemployment tax is called the reemployment assistance tax, and for 2022, rates range from 0.0% to 9.45%.
For the first three years, new employers pay rates of 1.55% – 6.55%. Note that construction companies pay higher rates than non-construction businesses.
After your third year, the South Dakota Department of Labor and Regulation will assign you an experience rate that’s primarily based on the wages you reported and the amount of claims paid to your former workers.
South Dakota sets a wage base, which is the maximum amount of wages subject to tax. The wage base for 2022 is $15,000 for each employee.
When is unemployment tax paid in South Dakota?
Employers in South Dakota pay unemployment tax each quarter and must submit quarterly reports.
You to file a paper report using Form 21, Employer’s Reemployment Assistance Quarterly Report. Alternatively, you can file electronically through the Department of Labor and Regulation website. Just remember to file a report even if you paid no wages or have no tax due. South Dakota has a helpful handbook that covers all the details of the reemployment assistance tax.
What’s the salary threshold in South Dakota?
Because the state of South Dakota doesn’t have its own salary threshold, it adheres to the federal salary threshold, which is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
What are the new hire reporting requirements in South Dakota?
Employers must report every new or rehired employee to the South Dakota New Hire Reporting Center no later than 20 days after they start work.
If an employee quits or is fired, when do I have to give the final paycheck?
All employees who leave must generally receive their final wages no later than the next regularly scheduled pay date.
Is Workers’ Compensation insurance required in South Dakota?
Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
Federal payroll tax FAQs
How much do I need to withhold from employees’ paychecks for federal income tax?
The amount of tax to take out depends on a few factors. First, you’ll need information from your employee’s Form W-4, Employee’s Withholding Certificate. Employees should complete this when they start working for you.
With the Form W-4, your employee’s pay amount, and the federal tax tables, you’ll be able to figure out how much to withhold. If that sounds too tedious for you, use payroll software instead. It can crunch the numbers quickly, and most software programs will prepare your payroll tax forms too.
What’s the Additional Medicare tax?
The Additional Medicare tax went into effect in 2013 as a part of the Affordable Care Act. Employers must withhold this tax from any employee who earns more than $200,000 a year.
For 2022, all wages over $200,000 are taxed at 0.9%.
How is federal unemployment tax calculated?
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but many employers only have to pay 0.6% each year.
What is FICA tax?
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
| FICA Tax in 2022 | |
| Social Security (each party pays) | 6.2% on the first $147,000 in wages |
| Medicare tax (each party pays) | 1.45% on all wages |
When are federal payroll taxes due?
Federal payroll taxes have multiple due dates.
FICA, Additional Medicare, federal income tax: These are due either monthly or semi-weekly, depending on how much tax is due.
Federal unemployment tax: This is generally due annually—but if more than $500 is due, quarterly payments are required.
In addition to paying the tax, you must file payroll tax returns.
FICA, Additional Medicare, federal income tax: Submit quarterly reports using Form 941, Employer’s Quarterly Federal Tax Return.
Federal unemployment tax: File annual reports, unless quarterly payments are required, then quarterly reports using Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return.
If payroll isn’t something you want to spend heaps of time on, check into comprehensive payroll services that will take care of everything from onboarding employees to filing payroll tax returns.
Disclaimer
The information provided by the Employer Tax Calculator is for general information and estimation. All of the taxes or fees that apply to your business may not be accounted for, or fully up to date. Gusto, Inc. (dba “Gusto”) does not promise or guarantee that the information in the Employer Tax Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct result or an indirect consequence of its use. By using the Employer Tax Calculator, you waive any rights or claims you may have against Gusto in connection with its use.