South Dakota Law Revises Unemployment Tax Rate Calculations

South Dakota is revising its method for calculating unemployment tax rates, under a bill (H.B. 1011) Gov. Kristi Noem (R) signed Feb. 1.

Tax Rate Schedule C

H.B. 1011 creates a new unemployment tax rate Schedule C, which has rates ranging from zero to 0.3% for positive-rated employers and rates ranging from 0.8% to 8.8% for negative-rated employers. These rates are lower than the rates under Schedule B, the lowest tax rate schedule possible under state law currently. South Dakota may use tax rate Schedule C starting in calendar year 2024.

Beginning in 2024, tax rate Schedule A ...