South Dakota payroll tax and registration guide

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

• State Employer Identification Number and state/local tax IDs
• Tax rates - State tax offices set these rates based on the type, age, and size of your business
• TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf

This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.

Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.

See what information you need to provide OnPay, and what taxes and filings OnPay handles for South Dakota Employers.

• Information OnPay needs from you

  Use this checklist to make sure you’ve covered everything required to set up your account as a South Dakota employer, so OnPay can accurately file and pay taxes on your behalf:
  
  

  All South Dakota employers	What is this?
  Make sure your business is registered with the South Dakota Department of Labor & Regulation	Allows your business to pay required unemployment insurance in South Dakota More info >
  Provide OnPay with your South Dakota Reemployment Tax ID	A 7-digit number unique to your account with the South Dakota Department of Labor Division of Reemployment Assistance More info >
  Provide OnPay with your South Dakota Unemployment (SUI) Rate	A tax rate you receive annually from the South Dakota Department of Labor More info >

• Taxes and filings OnPay handles for South Dakota Employers

  Withholding Tax

  There is no individual state income tax in South Dakota.

  Unemployment Insurance Tax

  Form 21 (Filing)

  South Dakota Quarterly Tax and Wage Report

  - Quarterly / Annual

  Other

  New Hire Report

  South Dakota Report of New Hires

  - As required

Where you can find the tax account numbers you need

If you are an existing employer who has previously run payroll in the South Dakota, you likely already have the IDs and online accounts needed for OnPay to process your tax filings. 

If you are a new employer in South Dakota, you will need to register your business with the South Dakota Department of Labor & Regulation's Division of Reemployment Assistance. This must be completed for OnPay to be able to file and pay your South Dakota taxes.

Reemployment Assistance is commonly known as State Unemployment Insurance (SUI).

Division of Reemployment Assistance Account Number and Tax Rate

Updated January 1, 2025

Existing South Dakota Employer: 

• Existing employers can find their Account Number on the following forms:
  • Contribution and Investment Fee Rate Notice (Show me→)
  • Quarterly Contribution Wage Report (Form DOL-UID-21)
• Your Reemployment Assistance Tax Rate can be found in the UI Box of the Tax Rate Notice
• Your Employer Investment Fee* can be found in the Investment Fee Box of the Tax Rate Notice
• The UI tax rate for most South Dakota employers is between 0.01% and 8.8%, with a $15,000 wage base

New South Dakota Employer: Register with the South Dakota Department of Labor & Regulation

• Register online with the South Dakota Department of Labor & Regulation
• The UI tax rate for most new South Dakota employers is 1.2%, with a $15,000 wage base
• You'll receive your account number and tax rate instantly once you have completed the online registration

*Include your Employer Investment Fee tax rate when entering your South Dakota SUI tax rate in OnPay.

New South Dakota Employer: Register with the South Dakota Department of Labor & Regulation

• Register your business with the South Dakota Department of Labor & Regulation
  
  • You can complete this registration online in a few minutes
  • You may be prompted to create a General Login with the department, if needed
• You can also register by mail
  • Download, print, and complete Form 1
  • Submit your completed form by mail to:
    Reemployment Assistance Division – Tax Unit
    South Dakota Department of Labor and Regulation
    PO Box 4730
    Aberdeen SD 57402-4730
• You can also submit your completed form by fax to: 605.626.3347

Paying employees in other states?

If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.

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