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Before distributing pay stubs to employees and contractors in South Dakota, it's crucial to understand the pertinent laws and regulations.

This guide offers comprehensive insights into the specific requirements and obligations for employers in the state concerning payroll processing and pay stub provision.

south dakota

Pay stub regulations in South Dakota

1. Are pay stubs required by law in South Dakota?

It's not mandatory for employers in South Dakota to provide employees with pay stubs. However, federal law requires all employers covered by the Fair Labor Standards Act (FLSA) to maintain a record of employee payments for at least 3 years.

2. How often do you need a pay stub in South Dakota?

Although there's no law for employers to provide pay stubs to their employees and contractors, it is recommended that you issue pay stubs every time you pay an employee

3. What information can be included on a pay stub in South Dakota?

Since there's no law for pay stubs, you can include the information listed below:

  • Employee information such as name, last 4 digits of social security number, and address
  • Employer information such as name, employer identification number (EIN), and address
  • Pay period
  • Gross earnings before deductions
  • Taxes withheld
  • Employee contributionss
  • Deductions
  • Net pay

4. Does South Dakota have a state income tax?

No, state income taxes are not applicable to employees in the state of South Dakota.

5. Are there any other taxes applicable to South Dakota?

No. There are no local taxes in addition to federal income taxes applicable to employees in the state of South Dakota.

Information needed to generate pay stubs

To provide employees with accurate pay stubs, no information specific to the state is required in addition to employment and salary information.

South Dakota wage and hour laws

Employers in South Dakota are required to comply with wage and hour regulations, ensuring that non-exempt employees receive at least the minimum wage, are properly compensated for any overtime work, are provided with adequate meal and rest breaks, and accrue appropriate paid time-off benefits.

These regulations encompass various aspects of employment law in South Dakota.

  • Minimum wage
  • Overtime pay
  • Meal breaks
  • Rest breaks
  • Paid time off and leave

South Dakota Minimum wage

In South Dakota, businesses are legally obligated to ensure that their employees receive at least the minimum hourly wage as specified by statutory regulations. As of 2024, the Basic Minimum Rate stands at $11.20 per hour, with adjustments made annually according to a predetermined formula.

Overtime pay

South Dakota does not have specific labor laws addressing compensatory (comp) time or overtime; however, federal regulations under the Fair Labor Standards Act (FLSA) do apply. Under the FLSA, non-exempt employees are entitled to receive overtime pay for hours worked beyond 40 in a workweek, at a rate of at least one and a half times their regular pay rate, unless exempted.

South Dakota meal break and rest break

In South Dakota, employers are not obligated by state law to provide meal breaks or rest breaks for their employees. Instead, the state follows federal regulations regarding breaks for all workers. If an employer opts to offer a meal break, it must be compensated if it lasts less than 20 minutes. Breaks exceeding 30 minutes are considered meal periods and do not necessitate compensation as long as the employee is entirely relieved of all duties during that time.

Paid time off and leave

In Georgia, employers must offer employees a range of leave benefits, which include both mandatory and discretionary options.

Required LeaveNon-Required leave
paidUnpaidPaid or Unpaid
Voting leave - 2 hours of paid time offEmployers in South Dakota might have an obligation to grant unpaid leave to employees under the Family and Medical Leave Act (FMLA) or other applicable federal laws.Vacation leave
Jury duty leaveBereavement leave
Military leaveHoliday leave
Sick leave

South Dakota State payroll taxes 2024

  • South Dakota State Unemployment Insurance (UI) Tax

South Dakota State Unemployment Insurance (UI) Tax

South Dakota has implemented the State Unemployment Tax Act (SUTA) to aid individuals facing unemployment by providing unemployment benefits. This legislation enables the state to collect the required funds to administer unemployment insurance benefits to eligible individuals during periods of job loss.

For new employers in South Dakota, the tax rates for non-construction businesses are set at 1.20% for the first year, and then reduced to 1.00% for the second and third years. For construction businesses, the rates are higher, starting at 6.00% in the first year and then decreasing to 3.00% for the second and third years.

In 2024, South Dakota's State Unemployment Tax Act (SUTA) rates varied from 0% to 9.35%, with a consistent taxable wage base of $15,000.

South Dakota payroll tax filing

Report of New hire Employees

Employers in South Dakota must report newly hired or rehired employees (those who haven't received wages for the past 30 days) to the New Hire Reporting Center within 20 days of their first workday. Rehired employees should be reported with their latest date of hire. Intentional failure to comply with these obligations under the New Hire law constitutes a petty offense, potentially incurring a fine of $25 per violation. In cases of collusion between employer and employee to evade reporting, the penalty may escalate to $500 per newly hired employee.

Report of Independent Contractors

South Dakota law does not require employers to report their new hired independent contractors.

How to report employees new hire in South Dakota?

South Dakota offers various options for submitting new hire information, allowing flexibility in the reporting process.

OnlineMailFax
Employees New Hire ReportAddress Information:
P.O. Box 4700
Aberdeen, SD 57402
Direct Phone: 605-626-2942
Public Phone: 888-827-6078
Fax 1: 605-626-2842
Fax 2: 888-835-8659

Employers Quarterly contribution and wage report(Form 21)

In South Dakota, wage reports are filed quarterly, and for them to be considered timely, they must be submitted by the last day of the month following the end of each calendar quarter. Failure to meet this deadline incurs a penalty for late filing.

Reporting PeriodDue Date
Quarter 1April 30
Quarter 2July 31
Quarter 3October 31
Quarter 4January 31

Late filing incurs a $25.00 penalty per month or partial month from the due date, while late payment also results in a $25.00 penalty per month or partial month. Interest of 1.5% per month or partial month applies from the due date. For instance, if the 2nd quarter report due in July is filed in September, a $50 late filing penalty, a $50 late payment penalty, and 3% interest on the tax amount due would be applied. Moreover, failure to comply may result in subpoenas for payroll records.

Have all the information handy?

With SecurePayStubs, you can calculate accurate federal and South Dakota state taxes for your employees and generate pay stubs securely.

Create a paystub now

Processing payroll manually is complex

As a business owner who runs payroll manually, you will need to keep up with ever-changing payroll laws. You already have a lot on your plate and you might not want to get into the complex process of pay stub generation.

With SecurePayStubs' paystub generator, you can effortlessly create accurate pay stubs for your employees, including precise federal and South Dakota state taxes, as well as for independent contractors, all within a speedy process of less than 2 minutes. Enter the basic employee and employer information, select a pay stub template for free, and let SecurePayStubs calculate the applicable payroll taxes accurately.

Spend less time generating pay stubs and more on your business growth.

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This article has been updated from its original publication date of April 8, 2024.